Fleming Bagging its Retail Operation

Fleming Companies Inc. (Lewisville, Texas) completed the sale of 17 Food4Less locations to Save Mart Supermarkets (Modesto, Calif.) for cash approximately $82 million.

Save Mart had previously agreed to purchase another 11 Fleming-owned Food4Less locations in California.

Fleming is the nation's largest wholesale food distributor, but has made the decision to exit retailing in favor of concentrating on its distribution activities.

“Once we complete our retail sales, Fleming will become the only pure-play wholesale distribution company with a national footprint,” said chairman and ceo Mark Hansen. “Exiting retail means we will not be competing with our important retail distribution customers for shoppers' dollars, which is an important value proposition to many retailers in today's competitive retail environment.”

Fleming serves nearly 50,000 retail locations, including supermarkets, convenience stores, supercenters, discount stores, concessions, limited assortment, drug, specialty, casinos, gift shops, military commissaries and exchanges, etc.

Save Mart has about 100 grocery stores in northern and central California, under the S-Mart, Save Mart Foods, and Food Maxx banners.