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Chedraui USA Poised for Growth Out West

El Super, Smart & Final adding several new locations this year
Emily Crowe, Progressive Grocer
Smart & Final Q1 Sees Higher Comps in ‘Strong Start’ to Year
Three new Smart & Final stores will open in California this year.

Chedraui USA, parent company of the El Super, Smart & Final and Fiesta Mart banners, and the fourth largest grocery retailer in California, is setting itself up for major growth and a new logistics integration effort. New El Super stores will come online in Las Vegas and San Ysidro, Calif., this year, while three new Smart & Final locations will come to the California cities of Madera, Lompoc and Lancaster. 

The company also plans to remodel at least 40 existing stores, and will develop a 1.4 million-square-foot distribution facility in Rancho Cucamonga, Calif., to increase its current Southern California distribution and warehouse capacity by 50%. The next-generation facility will integrate distribution operations from five smaller Southern California warehouses and add significant space to support sales growth and the development of new stores.

[Read more: "ALDI Adding West Coast Stores"]

According to Chedraui USA, the new facility will add a significant number of new jobs to its distribution workforce while also reducing the amount of fuel consumption through significant route integration.

“Our El Super and Smart & Final stores offer customers among the best variety and value in our markets, and we’ve had many requests to bring additional stores to new communities,” said Carlos Smith, CEO of Chedraui USA. “We’re excited to respond with five new stores in 2023, and the commitment to a new integrated distribution center to help us grow and maintain low prices for our customers, for years to come.”

Smart & Final opened a new store in San Jose, Calif., in November, as well as a nearby warehouse featuring more than 3,000 bulk items and a wide assortment of grocery staples. As it expands its footprint, Smart & Final has also widened its omnichannel presence through a partnership with Uber Technologies, Inc. to offer on-demand and scheduled grocery delivery, including the delivery of alcoholic beverages.

A 150-year-old grocery business, Commerce, Calif.-based Smart & Final was acquired in 2021 by a subsidiary of Mexican supermarket operator Grupo Comercial Chedraui, which is also parent company to El Super and Fiesta Mart. Grupo Comercial Chedraui is No. 40 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

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