This is an archived article that was published on sltrib.com in 2010, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
On Oct. 29, grocery wholesaler Associated Food Stores Inc. will close two Fresh Market stores in Salt Lake City and one in Provo.
The stores were three of the 34 Albertsons supermarkets that Associated purchased from Supervalu last November for $167 million.
The purchase largely accounted for nearly $2.5 million in losses for the wholesaler's 2010 fiscal year that ended in March, compared to last year's profits of $2.4 million. While declines came from lower sales at corporate and member-owned stores, the biggest losses were attributed to the Fresh Market chain.
"We knew when we purchased the group of stores that there would be challenges with some locations," said Neal Berube, president of Fresh Market. "Closing stores is never an easy decision."
Pharmacy customers at the closed stores can fill their prescriptions at the Smith's location at 455 S. 500 East in Salt Lake City or the Macey's at 1400 N. State St. in Provo.
About 150 employees work at all three stores, but "due to the current status of the economy, we will not be able to offer positions to all of the team members affected by the closures," said Berube. "However, we hope there will be opportunities for some of the team."
During Associated's annual meeting in June, executives attributed losses from the buyout to missteps.
Executives said they did not anticipate the strong loyalty of Albertsons customers. Many opted to shop elsewhere after the buyout. They also overestimated the impact of price cuts on thousands of items they believed would keep those customers.
Despite the miscalculations, the Fresh Market stores will boost the buying power for all Associated members, CEO Rich Parkinson had said.
The Salt Lake-based Associated Foods services over 500 independent grocery stores throughout seven states in the Intermountain West. The company also operates 22 stores under the Macey's, Dan's, Lin's and Dick's Market banners. Among its members are Harmons, Winegar's, Ream's and Kent's. —
3 Fresh Market stores to close
Provo • 2255 N. University Parkway
Salt Lake City • 140 N. 900 West and 370 E. 200 South