Save-A-Lot Abandons West Coast

In its first major move since being divested from former owner Supervalu Inc., hard-discount grocery chain Save-A-Lot is exiting the California and Nevada markets.

The decision, which will impact 13 corporate locations, a retailer-owned store and its Rancho Distribution Center, came “after rigorous review and analysis,” said Chon Tomlin, spokesperson for Earth City, Mo.-based Save-A-Lot.

Tomlin said the closures, which account for less than 1 percent of the company’s network, will free up resources to allow Save-A-Lot to focus on building out markets where it already has a larger, more established footprint of corporate and licensee stores.

“Decisions like these are never easy and we understand the tremendous impact they have on our team members and customers,” Tomlin said. “The company is working diligently to ensure that our field associates who will be leaving Save-A-Lot have appropriate severance benefits and outplacement services to assist in their transition.”

Save-A-Lot, which was sold late last year to Toronto-based Onex Corp., had actually been planning a Western expansion as part of Supervalu’s one-time plan to spin off its popular retail banner into a separate, publicly traded company.

Prior to this announcement, Save-A-Lot operated some 1,400 stores in 39 states.