DETROIT — Kroger Co. said last week that it had agreed to acquire 20 Farmer Jack stores in this market from A&P for an undisclosed price. The acquisition, which is slated to close next month, had long been expected.
In addition, several other Farmer Jack stores were sold to customers of Spartan Stores, the Grand Rapids, Mich.-based wholesaler.
Cincinnati-based Kroger would incorporate the 20 stores it is acquiring into its 244-store Great Lakes Division. It already operates about 72 locations in metro Detroit, where it has the No. 1 market share with about 21%, according to Metro Market Studies, Tucson, Ariz. Farmer Jack, which has been supplied by C&S Wholesale Grocers, has a market share of about 17.8% in Detroit. Meijer Inc., Grand Rapids, Mich., has a similar share with 30 stores.
As previously reported, A&P, Montvale, N.J., is seeking to sell all 66 Farmer Jacks in the market, and said it expects to have the deals finalized by about July 7. One local source told SN recently that buyers had not yet been found for 19 of the 66 locations.
Hollywood Super Market, Troy, Mich., is among the Spartan independents that have acquired Farmer Jack locations, William Welch, president of Hollywood, told SN. The four-store operator bought three stores and expects to convert them by next week, he said.
Other Spartan independents in the market reportedly buying stores are Hiller's Markets, Busch's and Oakridge Markets.