Retail News Breaks Archives
Save-A-Lot forms new banner with Hispanic grocer
July 21st, 2010
ST. LOUIS – Supevalu Inc.'s Save-A-Lot hard discount, limited assortment supermarket chain has partnered with Hispanic grocery operator Mr. Rafael Ortega to form a new company.
Called Adventure Supermarkets LLC, the new company owns and operates six former Save-A-Lot stores in the Houston and south Texas markets under a co-branded format named El Ahorro Save-A-Lot.
Save-A-Lot said Wednesday that the six stores — located in Brownsville (one store), Victoria (one store), Harlingen (one store) and Houston (three stores) — began operating under the El Ahorro Save-A-Lot banner at the end of May.
"We are always looking for innovative opportunities to bring the Save-A-Lot brand to local communities, and we think this affiliation best enables us to serve the Hispanic community in this area," Bill Shaner, Save-A-Lot president and chief executive officer, said in a statement.
"This relationship is a new business model for the company," Shaner noted. "Combining Mr. Ortega’s local insights with the power of the Save-A-Lot network of stores and exclusive-label expertise will enhance our ability to provide our Hispanic customers in this part of the country with the products and services they need and want, while positioning the Save-A-Lot brand for growth."
The retailer said Mr. Rafael Ortega has 24 years of experience in serving the Hispanic community in Texas and currently owns and operates 15 El Ahorro Supermarkets and nearly 100 La Michoacana Meat Markets.
"I am pleased about joining with Save-A-Lot in this opportunity and excited about the potential of our new, blended format," Ortega said in a statement.
Overall, Save-A-Lot operates nearly 1,200 stores in 39 states nationwide. The retailer said it offers a savings of up to 40% on groceries versus pricing at conventional supermarkets.