EARTH CITY, MO – In a move that will pull Save-A-Lot from the West Coast, the retailer announced that it is undergoing a new focus. The chain will close 14 locations total, effectively removing its presence from the California and Nevada markets.
"After rigorous review and analysis, Save-A-Lot has announced the company’s decision to exit the California and Nevada markets," Save-A-Lot spokeswoman Chon Tomlin said in a statement. "The closures, accounting for less than 1 percent of the company’s network, will free up resources to allow the company to focus on building out markets where it already has a larger, more established footprint of corporate and licensee stores."
This regional exit will involve the closure of 13 stores and one California-based distribution center in Rancho Cucamonga, according to St. Louis Post-Dispatch. Save-A-Lot stated that a timeline for the closures has not yet been released, but markdowns within the aforementioned locations began on Friday.
Save-A-Lot is reportedly exploring ways to assist affected team members, according to KTNV, through severance benefits and outplacement services.
This shift in direction comes shortly after the chain was acquired by Onex Corp. after being previously held by SuperValu. The chain changed hands for approximately $1.37 billion, stating before its sale that it planned to open 75 stores in fiscal 2017.
Currently, Save-A-Lot operates more than 1,300 stores throughout the U.S.
Will Save-A-Lot’s new and selective market focus enable it greater success in the future? AndNowUKnow will report as the news unfolds.
