Nugget Markets, Alamo Group Team Up to Acquire Eight Sacramento Ralphs

WOODLAND, Calif. -- Nugget Markets, based here, and the Alamo Group have joined forces to buy or lease eight former Ralphs supermarkets in the greater Sacramento, Calif. area.

The stores became available after the Los Angeles-based Ralphs division of Cincinnati's Kroger Co. decided early this year to pull out of Northern California because of poor financial results.

Under the terms of the agreement, Nugget will buy two former Ralphs, at 7101 Elk Grove Blvd. in Elk Grove and 4051 Woodcreek Oaks Blvd. in Roseville, and assume a lease at 4500 Post St. in El Dorado Hills. The 80-year-old family-held Nugget Markets will buy the former Ralphs in Elk Grove and convert it to new Nugget store, and will also open a second unit in either El Dorado Hills or Roseville, depending on which former Ralphs store better suits the grocer's needs, said Eric Stille, Nugget's president and c.e.o.

Nugget will convert two of the locations to its signature European-style marketplace format, both of which are expected to open in early 2007, while the Alamo Group, a Bay Area-based specialized reuse developer, will convert the remaining six markets to other retail uses.

"We're very excited about the Roseville, Elk Grove and El Dorado Hills locations," said Stille. "We are doing our due diligence and are in our final analysis; we will be selecting two of the three."

Stille said Nugget and Alamo teamed up for the deal to tender a stronger bid for the sites, which he considers to be "excellent locations" that he anticipates will translate well with local residents. "It's about putting the fun back into grocery shopping," he added, noting his company's commitment to "providing the best possible environment for shoppers and our associates. We want both our associates and guests to look forward to coming into our stores each day."

Nugget Markets, which operates supermarkets under both the Nugget and Food 4 Less banners, was ranked the "33rd Best Company to Work For" in America by Fortune magazine earlier this year.
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