Thursday, September 1, 2016

Fresh Market delays openings, names Supervalu as supplier

The Fresh Market confirmed earlier this summer that it has re-evaluated certain store openings as it takes time to develop its long-term growth strategy. The stores whose opening dates have been delayed include York, PA and three others in FL, VA and MO.

The store under construction in Blue Bell, PA was not listed and will presumably open as scheduled, although I'm sure The Fresh Market didn't expect McCaffrey's to open across the street when they signed their lease.

During an earnings conference call last November, The Fresh Market CEO Rick Anicetti said the company needed to comprehensively reassess the chain's value proposition due to an influx of competition and a slowdown in sales and profitability. After the company was sold to Apollo Global Capital earlier this year, The Fresh Market announced 13 store closures.

In related news, The Fresh Market announced earlier this month that it had reached a long-term supply agreement with Supervalu to serve as the grocer's wholesaler and distributor. According to a report in Supermarket News, the deal calls for Supervalu to supply The Fresh Market with traditional and signature grocery products across a range of categories. Once The Fresh Market's existing supply contracts expire, Supervalu will become the chain's primary wholesaler.

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