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Sacramento-based Raley’s has tapped Unified Grocers to run its general merchandise/health, beauty and wellness (GM and HBW) operations as a third-party provider. Under the terms of the agreement, Unified Grocers will lease Raley's GM/HBW warehouse in Stockton, Calif., and has hired all of the exisitng employees who work in the facility.
"We are looking forward to better serving our members from this facility, starting immediately with our newest member Haggen," said Bob Ling, president/CEO of Commerce, Calif.-based Unified Grocers. "In addition, the potential is there to serve other companies from this location as well."
The acquisition of the warehouse, which is located just eight miles from Unified’s own Stockton facility, complements Unified’s specialty Market Centre subsidiary in the growing wellness category. "Market Centre has been successful in growing its HBW sales but this agreement provides the opportunity to scale the business to become big enough to buy and distribute in a more effective way," said Joe Falvey, president of Market Centre.
The addition of Raley's Stockton warehouse will also enable Unified to make the most effective use of its other fixed assets, such as freeing up space in its other depots, as well as potentially benefiting its other independent grocer member-partners with expanded GM and HBW products and new customers.
Posting approximately $4 billion in sales during fiscal 2014, the retailer-owned Unified Grocers supplies independent retailers throughout the western United States.