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Stop & Shop, King Kullen kill acquisition deal

Companies cite coronavirus pandemic as driving ‘unforeseen changes in the marketplace’

Russell Redman

June 10, 2020

2 Min Read
King_Kullen-North_Patchogue_NY_store.jpg
King Kullen currently operates 29 King Kullen supermarkets and five Wild by Nature natural/organic grocery stores in the metropolitan New York market of Long Island.King Kullen

Stop & Shop’s long-pending acquisition of Long Island, N.Y., grocer King Kullen is now a no-go.

The two chains, along with Stop & Shop parent Ahold Delhaize USA, said Wednesday that they have mutually decided to terminate the deal because of “significant, unforeseen changes in the marketplace,” mainly triggered by the COVID-19 outbreak. The acquisition was announced in early January 2019, after the agreement was signed in the previous month. Financial terms weren’t disclosed.

“Both companies have put forth an incredible amount of effort to work through unanticipated challenges that have arisen, and we regret that we’re not able to move forward,” Stop & Shop President Gordon Reid said in a statement. “King Kullen has a strong legacy on the island, and we wish them continued success. Stop & Shop remains committed to the Long Island community, to serving our customers in the market well, and to investing in our associates and our stores in Nassau and Suffolk counties.”

Bethpage, N.Y.-based King Kullen currently operates 29 King Kullen supermarkets and five Wild by Nature natural/organic grocery stores in the metropolitan New York market of Long Island, where Stop & Shop has more than 50 stores. At the time of the acquisition deal, there were 32 King Kullen supermarkets, but three underperforming locations were closed in the summer of 2019.

Related:King Kullen closing several stores

“We look forward to continuing to focus on what we do best: serving our great customers across Long Island and supporting our hard-working store associates,” stated Brian Cullen, co-president of King Kullen. “We are enthusiastic about the future and well-positioned to serve Nassau and Suffolk counties for many years to come. In short, we are here for the long term.”

Founded in 1930 by Michael Cullen, King Kullen is recognized by the Smithsonian Institution as the America’s first “supermarket.” Along with traditional grocery, King Kullen stores feature a large catering and prepared foods department, fresh-baked breads and sweets, healthy and organic product areas, pharmacies and online shopping. The company launched the Wild by Nature natural food store banner in 1995. However, King Kullen has seen its store count dwindle over the years amid intensifying competition from larger supermarket chains, big-box discounters and, more recently, online grocery services.

In an update early last month, Ahold Delhaize reported that it expected to finalize the King Kullen purchase in the second half of 2020, pending customary closing conditions. The previous timetable was for the transaction to close in the first half of the year. When the acquisition was announced, Stop & Shop said the deal was slated to be completed in the 2019 first quarter.

Related:Stop & Shop to acquire King Kullen

Quincy, Mass.-based Stop & Shop operates more than 400 stores in Massachusetts, Connecticut, Rhode Island, New York and New Jersey.

For our most up-to-date coverage, visit the coronavirus homepage.

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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