Raley's Plans to Buy Six Scolari's Stores in Northern Nevada
WEST SACRAMENTO, CA - Making its first acquisition since the 1990s, Raley’s has announced plans to buy six Northern Nevada locations owned by Scolari's Food and Drug. Under the terms of the deal, Raley’s will assume operations of the acquired location and transfer them under the Raley’s banner as the retailer looks to expand its footprint in Nevada.
“I am pleased that Raley’s will reach and serve even more customers,” said Michael Teel, Raley’s Chairman and CEO. “Making healthy and affordable food available to more people aligns with our purpose to infuse life with health and happiness, by changing the way the world eats, one plate at a time.”
Raley’s has been a supporter of communities in Nevada since 1959, according to a press release, currently operating eleven Raley’s locations, one Food Source, and two Aisle One fuel stations in the state. Under the new agreement Raley’s will purchase five locations of Scolari's Food and Drug and one Sak ‘N Save, bringing the retailer’s total operations in Nevada to 19.
“The network of Scolari’s stores offers great synergies in a market we already operate,” added Raley’s CFO Ken Mueller.
Raley’s predicts the transition to the new banners will be complete by late spring of 2018. Raley’s will transition the five Scolari’s locations to the Raley’s banner, while the one Sak ‘N Save will keep its name and operate as part of the Food Source division of Raley’s.
“We expect to build on the existing customer base by offering even more products and categories at a price that is affordable. The Raley’s team will actively listen to customers, and we look forward to learning what the customers want and need from us,” said Keith Knopf, Raley’s President. “We take seriously the stewardship passed to us by the Scolari’s family and will work to preserve the positive impact they have created.”
Joey Scolari, Chief Executive Officer, Scolari’s Food & Drug, will continue to operate and serve its customers in Sparks and Sun Valley, along with the Scolari’s family.
“With complementary markets and strong family values, we believe Raley’s was the right partner to assume the operation of the six locations of our family business,” explained Scolari. “We are confident our customers and employees will be served well under the stewardship of the Raley’s organization.”
Raley’s last major acquisition moves occured in the 1990s, when the grocer purchased two other family-owned grocery brands, Nob Hill Foods in the Bay Area and Bel Air Markets in the Sacramento region. In total, the company operates 122 stores under four banners. With the addition of the Scolari locations, Raley’s store count will now reach 128.