Shopping Centers Today

DEC 2016

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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52 S C T / D E C E M B E R 2 0 1 6 T he supermarket industry continues to undergo seismic shifts, with Toronto-based private equity firm Onex Corp.'s $1.4 billion purchase of SuperValu's Save-A-Lot chain of discount grocery stores. The deal is the latest in a series of acquisitions and mergers in the supermarket business. Save-A-Lot, based in Earth City, Mo., operates 1,300 no-frills stores across the U.S., while SuperValu operates slightly more than 3,300. The agreement with Onex calls for SuperValu to manage certain day- to-day operations, including payroll and merchandising technology, for five years. Private equity firm to buy 1,300 stores for $1.4 billion By Edmund Mander SuperValu deal latest sign of supermarket consolidation The deal, which the parties expect to close in January, comes on the heels of other major upheavals in the famously thin-margin supermarket industry. America's biggest grocery operator, The Kroger Co., has acquired several regional chains in recent years, including North Carolina's Harris Teeter and Milwaukee- based Roundy's Supermarkets, parent of Chicago-based Mariano's. European retailers Ahold and Delhaize have combined to form a 2,000-store, East Coast–based chain that operates the Food Lion, Giant, Hannaford and Stop & Shop brands. And Albertsons, backed by Cerberus Capital and real estate interests that include Kimco Realty Corp., bought back the American Stores chains it had once sold to distributor SuperValu and, in a separate deal, acquired the assets of Safeway. The proposed deal "is the result of a thorough process to maximize the value of the Save-A-Lot business and best position SuperValu for future success," said Gerald L. Storch, the company's nonexecutive chairman of the board, in a prepared statement. (Storch is also CEO of Hudson's Bay Co.) "SuperValu is successfully executing on its long-term strategic vision and positioning the company for continued growth and value-creation. We are confident that this transaction will create exciting opportunities for both SuperValu and Save-A-Lot." n Most brokerages make you choose: One asset class. For life. Discover more for yourself and your business at RE/MAX Commercial,® where you have the flexibility to work multiple market segments and invest in the tools you want. Freedom. That's the Sign of an Agent with RE/MAX Commercial ©2016 RE/MAX, LLC. Each RE/MAX® office is independently owned and operated. 16_99967 remaxcommercial.com Office • Industrial • Retail • Multi-family • Land Commercial Development • Hospitality S T O R E F R O N T S

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