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CINCINNATI - The Kroger Co. on Friday announced it has reached an agreement to purchase 18 Raley's stores in Las Vegas. The transaction, which is subject to certain customary conditions, is expected to close within 30 days. The sale puts Kroger head to head with market leader Albertsons in the Las Vegas area.
The majority of the stores, which average 46,000 square feet in size, will operate under either the Smith's or Food 4 Less banner. Smith's currently operates 19 stores in Las Vegas, while Food 4 Less has five existing stores in the area and two additional stores under construction.
"Las Vegas is an important market for Smith's. The addition of these stores will provide outstanding growth opportunities for our business and added convenience for our customers," said James Hallsey, Smith's president. "Raley's has very qualified employees, and we look forward to interviewing and bringing many of them on to the Smith's team."
The Smith's banner holds a 15.3 percent DMA (designated market area) share in Las Vegas, according to the latest Market Scope data from Trade Dimensions. Albertsons is the leading player, with a 30.4 percent market share, while Safeway-owned Vons comes in at 15.7 percent. Raley's was in fourth place with 13.1 percent of the market.