Albertson's LLC to Exit Oklahoma, Outsource DFW Grocery Distribution

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Albertson's LLC to Exit Oklahoma, Outsource DFW Grocery Distribution

BOISE, Idaho -- Albertson's LLC said yesterday it plans to exit the Oklahoma marketplace and outsource the grocery distribution operations that support its Dallas-Fort Worth division, in a two-pronged deal with Associated Wholesale Grocers (AWG) of Kansas City, MO.

In the deal, the cooperative wholesaler will buy Albertsons Ft. Worth distribution center, while four of its retailer-members will buy 23 of Albertsons' Oklahoma stores.

The retailer also inked a five-year supply agreement under which Associated will continued service via the DFW distribution center to Albertsons stores in its Dallas-Fort Worth division.

"This strategic move by Albertson's LLC means that our DFW division will receive comparable, high quality services, from largely the same team, while allowing the division to restructure its operating costs," said Bob Miller, c.e.o. and president of Albertson's LLC. "Selling these assets to AWG and its member retailers allows Albertson's LLC to ensure employment for the vast majority of our impacted associates with a strong national distribution company and regional grocery operators focused on the Oklahoma marketplace."

Stores throughout Texas, Louisiana, and Arkansas are not affected, and customers in those stores will not notice any changes in their Albertsons stores as a result of this transaction, the company said.

The four AWG member retailers acquiring the Albertsons stores are: Homeland, Inc., Reasor's, Inc., RPCS, Inc., and Williams Discount Foods. The stores in Oklahoma will remain open and operating under the Albertsons banner until they are sold. The sales are expected to close mid-July, with the store sales likely to occur before the sale of the distribution center.

Officials at Albertsons and AWG were not available for further comment on the deal yesterday.

The Dallas-Fort Worth division of Albertson's LLC operates 141 stores throughout Arkansas, Louisiana, Oklahoma, and Texas, employs more than 47,000 associates, and operates under the Albertsons banner in Arizona, Arkansas, Colorado, Florida, Louisiana, Nebraska, New Mexico, Oklahoma, South Dakota, Texas, and Wyoming.