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MINNEAPOLIS - Supervalu Inc. announced today it has completed its acquisition of Deal$ -- Nothing Over a Dollar, LLC, a general merchandise retailer specializing in single price point merchandise. At closing, Deal$ operated 53 stores across eight Midwestern states.
"We are excited to introduce a general merchandise strategy into our breakthrough grocery format Save-A-Lot through the acquisition of Deal$. By following the same disciplined approach that secured Save-A-Lot's leadership position, we can positively influence the growth of our extreme value retail business over the long term," said Jeff Noddle, Supervalu president and CEO.
Save-A-Lot's entire store network will expand by approximately 150 stores in fiscal 2003 representing approximately 100 new Save-A-Lot's and the addition of the Deal$ store base. The acquisition is included in Supervalu's previously announced capital spending plan of $500 - $525 million and is expected to be earnings neutral in fiscal 2003.
Deal$ is a St. Louis-based extreme value general merchandise retailer operating 53 stores in eight states, which are supported by one primary distribution center in Illinois. With an average store size of approximately 9,000 square feet, Deal$ offers an assortment of single price point general merchandise and food items. Deal$ opened its first store in 1999 and competes effectively in the dollar store niche. The Deal$ management team, with retail experience spanning several decades, developed its dollar price point format after successfully running other retail operations in Missouri and Illinois.