Retail News Breaks Archives
Giant adds to Rx base with Genuardi's buy from Safeway
January 5th, 2012
CARLISLE, Pa. – A dozen retail pharmacies are set to change hands in the Philadelphia area as Giant Food Stores has agreed to buy 16 Genuardi's supermarkets from Safeway Inc.
Carlisle, Pa.-based Giant, part of Ahold USA, said Thursday that the $106 million deal is expected to close within the first half of the year.
Plans call for the 16 Genuardi's locations, 12 of which have pharmacies, to be converted into Giant Food Stores. The locations being acquired are in Jamison, Newtown, Langhorne, Chalfont, West Chester, East Marlborough, St. Davids, Springfield, Wynnewood, Flourtown, Huntingdon Valley, Spring House, King of Prussia, Maple Glen, Roslyn and North Wales, Pa.
Overall, Giant has more than 180 supermarkets, about three-quarters of which have pharmacies, under the Giant Food Stores and Martin's banners in Pennsylvania, Maryland, Virginia and West Virginia.
For Safeway, the sale to Giant Food Stores marks the start of a plan to divest the Genuardi's chain. The Pleasanton, Calif.-based food and drug retailer said Thursday that it aims to shut three Genuardi's stores — in Exton, Norristown and Royersford, Pa., none of which have pharmacies — and sell the remaining eight locations, five of which have pharmacies.
"We have made the decision to exit the greater Philadelphia market, including four stores in New Jersey, and focus our resources in those operating areas where we have a stronger presence," Steve Neibergall, president of Safeway's eastern division, said in a statement. "We will be working with the purchasers to ease the transition for our store employees and making efforts to facilitate continued employment for as many of them as possible."