UNFI Reaches Definitive Agreement to Sell 13 Shoppers Food Stores
PROVIDENCE, RI - Back in October, we reported that United Natural Foods, Inc. was planning on divesting both its Cub Foods and Shoppers Food & Pharmacy banners. Today, we’ve received a report that the company has gone through with the sale for Shoppers and has entered into definitive agreements with three separate grocery operators interested in the banner. 13 of its 43 Shoppers stores are on the table, with the sale expected to close between mid-December and the end of February 2020, subject to customary closing conditions.
“Today’s announcement reflects progress on our commitment to reduce UNFI’s retail footprint and marks another step toward transforming UNFI into North America’s premier food wholesaler,” said Steven L. Spinner, Chairman and Chief Executive Officer. “We believe that exiting the retail business will further accelerate our business transformation and allow us to more appropriately allocate resources toward long-term growth initiatives.”
According to its press release, UNFI will also close four additional Shoppers stores, which are expected to cease operations by the end of January 2020. The company made the decision to not renew the lease at three of these locations and the fourth is being cancelled pursuant to an agreement with the landlord. The rest of the Shoppers stores will remain in operation while UNFI continues to look for buyers.
“We will continue to wind down our retail footprint in a strategic and thoughtful manner to achieve the goals previously outlined,” Spinner continued. “As we do this, we greatly appreciate the loyalty of our associates and the tremendous service they have provided to our customers.”
As part of the transactions, two of the buyers will enter into long-term agreements that outline UNFI as the primary supplier of their acquired Shoppers locations under different banners.
For the list of Shoppers stores being sold or closed, click here for the full press release. Keep reading ANUK as we bring you more news in the retail sector.