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MINNEAPOLIS - Supervalu, Inc. today announced that its Advantage Logistics operation will provide third-party logistical services for the Kroger Co.'s dry grocery distribution center in Denver. Today's announcement is part of an earlier transaction, which included the sale of four Cub Foods stores and the Aurora distribution center to Kroger.
The 350,000-square-foot dry-grocery distribution center, currently operated by Compass Logistics, supports Kroger's King Soopers and City Market stores throughout the region. The transition is expected to occur within 60 to 90 days.
"Advantage Logistics welcomes the opportunity to use its knowledge and expertise to help Kroger operate efficiently and manage its costs," said Rick Finkbeiner, president of Advantage Logistics. "We will work closely with our new customers at King Soopers and City Market, as well as Compass Logistics, to ensure a smooth transition."
Advantage Logistics, a wholly owned subsidiary of Supervalu, already operates Kroger facilities in Livonia, Mich., and Phoenix, Ariz.
"This transaction coincides with our recently announced agreement to purchase four retail stores and a distribution facility in Colorado owned by Supervalu," said William Boehm, Kroger group v.p. of logistics. "Supervalu has operated in the Denver market and knows it well. In addition, we have had an opportunity to work closely with the Advantage Logistics team at other facilities around the country and know them well.
"At the same time, Compass is one of our valued logistics providers and will retain responsibility for the perishable distribution facility and for certain transportation services in the Denver market," Boehm said.