Retail News Breaks Archives
Safeway to divest Genuardi's, sells 16 stores to Giant
January 5th, 2012
PLEASANTON, Calif. – Safeway Inc. has agreed to sell 16 Genuardi's stores in greater Philadelpha to Giant Food Stores as part of a move to divest the chain.
Safeway said Thursday that it aims to shut three Genuardi's stores — in Exton, Norristown and Royersford, Pa. — and sell the remaining eight locations that Giant didn't acquire.
"We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey, and focus our resources in those operating areas where we have a stronger presence," Steve Neibergall, president of Safeway's eastern division, said in a statement. "We will be working with the purchasers to ease the transition for our store employees and making efforts to facilitate continued employment for as many of them as possible."
Safeway added that it will continue to operate the stores until the sale to Giant closes and as it seeks buyers for the other locations.
The Genuardi's locations sold to Carlisle, Pa.-based Giant Food Stores, part of Ahold USA, are in Jamison, Newtown, Langhorne, Chalfont, West Chester, East Marlborough, St. Davids, Springfield, Wynnewood, Flourtown, Huntingdon Valley, Spring House, King of Prussia, Maple Glen, Roslyn and North Wales, Pa.
Giant said Thursday that the $106 million purchase of the Genuardi's stores is expected to close within the first half of the year. Plans call for the 16 locations, 12 of which have pharmacies, to be converted into Giant Food Stores.
Overall, Giant has more than 180 supermarkets, about three-quarters of which have pharmacies, under the Giant Food Stores and Martin's banners in Pennsylvania, Maryland, Virginia and West Virginia.