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It’s official: Save A Lot is now a wholesaler

Discount grocer completes business model change after divesting nearly 300 stores

Russell Redman

February 10, 2022

4 Min Read
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Save A Lot said it now operates under a 'pure-play wholesale model,' serving about 900 stores in 32 states.Save A Lot

More than two years after unveiling plans to shift to a wholesale business strategy, discount grocer Save A Lot said the transition is done.

St. Louis-based Save A Lot said Thursday that it now operates under a “pure-play wholesale model.” As planned under the business transition, announced in late December 2020, the company has sold almost 300 of its corporate-run stores to independent grocery retailers, which through a relicensing program will operate the supermarkets under the Save A Lot banner.

Overall, Save A Lot said it made 34 transactions in selling corporate stores outside the St. Louis market to local retailers. Operators acquiring locations included some existing Save A Lot retailers, such as Fresh Encounter Inc. (51 stores), Janes Group (18 stores), Leevers Supermarkets Inc. (17 stores) and Save Philly Stores (14 stores). The transactions also included 15 new ownership groups, such as Yellow Banana LLC (38 stores in five states) and Ascend Grocery LLC (33 stores in Florida).

In its hometown of St. Louis, Save A Lot has retained 18 stores as a test market for new innovations and programs.

“Becoming a wholesaler was an important step in Save A Lot’s mission to lead as the brand of choice for value-oriented consumers, putting the company on an entirely new financial trajectory,” Mark Hutchens, executive vice president and chief financial officer at Save A Lot, said in a statement. “Since its inception, Save A Lot has filled an important need as an affordable, high-quality hometown grocer in each community it serves. This relicensing program positions our company to better serve our retail partners as they support their customers and communities. We’ve entered 2022 with strong momentum and improved financials that will help fuel the growth of the business in the years ahead.”

Related:Save A Lot names Leon Bergmann as new CEO

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Last week, Save A Lot announced grocery wholesale veteran Leon Bergmann as its new CEO.

 

At the time the wholesale business transition was announced, Save A Lot operated 14 distribution centers and had a retail network of more than 1,000 stores in 33 states, with the vast majority of the locations licensed by over 200 independent grocers. The company now has 13 distribution centers and serves about 900 stores in 32 states. Last July, Save A Lot also said it plans to remodel a third of its store base in 2021 and upgrade the rest of the stores by 2024.

Save A Lot noted that the retailer-to-wholesaler migration dovetails with its announcement last week of new CEO Leon Bergmann, who is slated to join the company on Feb. 21. The addition of the longtime grocery wholesale executive came nearly four months after Save A Lot confirmed the appointment of Craig Herkert as interim chief executive upon the exit of CEO Kenneth McGrath.

Related:Save A Lot sells 33 stores to investor group led by ex-Fresh Thyme CEO

“Incoming CEO Leon Bergmann brings significant wholesale and grocery experience that is ideally suited to lead this model,” Save A Lot Chairman Justin Shaw stated. “The board and management team are excited for this next chapter of growth for the Save A Lot business and to support the entrepreneurial ambitions of all our dedicated retail partners.”

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Save A Lot has bolstered its branding to spotlight the savings customers can get in its discount supermarkets.

Store remodels have included an enhanced shopping environment and selection, a new decor package and store layout, and conversion to Save A Lot’s latest branding. In late July, the company kicked off a brand refresh led by an updated logo and a marketing campaign highlighting the value that shoppers find in its grocery stores. The effort also included updated packaging for more than 55 private brands.

“Save A Lot’s momentum is built through our strong retail partner network, whose commitment to our brand and the consumers that we serve is unmatched in the industry,” Hutchens added. “We are proud to share our success with these dedicated owners who are incredibly passionate about providing the best Save A Lot experience to their neighborhood customers.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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