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Kmart Extends Fleming Contract

CHICAGO - Kmart Corp. on Tuesday said its contract with grocery wholesaler Fleming Cos. will be expanded, Reuters reported.

"We plan to expand our agreement with Fleming to include ethnic and specialty foods. Fleming distribution will now include meat, produce, frozen foods, dairy, candy and tobacco," Kmart CEO Chuck Conaway told analysts on a conference call.

Earlier this year, Kmart made Fleming its primary distributor. At that time, Kmart said Fleming's centralized procurement system would allow it to gain incremental volume discounts and more cost-effective procurement of goods.
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