Ross to Acquire 46 Albertson Sites
Pleasanton, Calif.–based off-price retailer Ross Stores, Inc. has reached an agreement with grocery chain Albertsons LLC to acquire 46 store sites in California, Florida, Texas, Arizona, Colorado and Oklahoma for an undisclosed sum.
Albertsons is selling the stores as a result of its acquisition by Eden Prarie, Minn.–based Supervalu Inc. for $9.7 billion earlier this year. Supervalu also operates Bristol Farms, Jewel and Cub stores.
Ross officials said they plan to incorporate these properties into its 2007 expansion program for its Ross and dd’s discounts stores. Some stores will undergo conversion as early as next month. A company spokesperson said Ross will spend about $1.5 million to $2 million converting each store, and the sales will start reflecting on the company’s balance sheet in 2008.
The acquisition is expected to grow the company’s projected total unit growth in the range of 11 percent to 12 percent for the year ending Feb. 2, 2008.
“Availability of quality retail locations is generally limited in these more established areas. As a result, we believe this transaction offers a rare chance to enhance our long-term growth prospects and returns by adding these stores, almost all in our highly productive, core Sunbelt states,” said Michael Balmuth, president and chief executive officer.
In its most recent quarter, which ended Ross’ year-over-year, same-store sales rose 5 percent, followed by a 6 percent increase in September. —Robert McAllister
