Ahold Delhaize’s Giant Food Stores chain will expand its reach along the Interstate 81 corridor by acquiring five Shop ’n Save stores and converting them to its Martin’s banner in a deal that gains back former Food Lion stores sent away in the Ahold-Delhaize merger.
The Shop ’n Save stores are currently owned by United Natural Foods, which acquired them as part of its acquisition of Supervalu earlier this year. All five were once Food Lion stores, acquired by Supervalu as part of a 22-store acquisition of Food Lion stores divested when Giant’s parent Ahold merged with Food Lion’s parent, Delhaize America, in 2016. Supervalu had subsequently rebannered them under its Shop ’n Save banner.
A purchase price was not disclosed. Giant said it anticipated the deal would close early in 2019. It is subject to customary closing conditions and approval by the Federal Trade Commission, which ruled on the previous divestitures.
“This acquisition demonstrates our continued commitment to the long-term growth strategy we announced earlier this year,” said Nicholas Bertram, president of Giant Food Stores, in a statement. “Our Martin’s associates have proudly served many of these communities for years, and we look forward to expanding the Martin’s brand along the Interstate 81 corridor and within the eastern panhandle of West Virginia.”
Supervalu had put the Shop ’n Save banner on the market earlier this year but was seeking a buyer who would continue to use its distribution as part of a deal. The sale to Giant indicates that preserving distribution is less of a priority for UNFI.
The acquired stores are:
• 22401 Jefferson Blvd., Smithsburg, Md.
• 500 North Antrim Way, Greencastle, Pa.
• 409 North McNeil Road, Berryville, Va.
• 147 Roaring Lion Drive, Hedgesville, W.Va.
• 1317 Old Courthouse Square, Martinsburg, W.Va.
Giant said it would provide additional details regarding the conversions at a later date. Current Shop ’n Save employees at these stores will have the opportunity to interview with Martin’s.
The acquisition announcement follows a series of strategic investments Carlisle, Pa.-based Giant has recently made in its store fleet and family of brands within Pennsylvania, including the introduction of the new Giant Heirloom Market in Philadelphia; the acquisition of Darrenkamp’s Willow Valley Square location and a new e-commerce hub, both in Lancaster; plus new stores planned for the East Stroudsburg, Pa., and Walnutport, Pa., communities.