Dallas-based food distributor to buy warehouse facilities

Journal Record, The (Oklahoma City), Apr 11, 2001 by David Page

Fleming on Tuesday said it will buy warehouse facilities in Suffield, Conn., and Perryman, Md., from Supervalu.

The facilities are scheduled to be begin supplying the Kmart and Kmart supercenter stores in the region with food and other products this summer. In February, Fleming and Kmart announced a 10-year, $4.5 billion-a-year alliance that includes the procurement and distribution of substantially all food and consumable products to Kmart's stores.

These distribution facilities will provide important geographic coverage that allows Fleming to expand its distribution network north to Maine, said Steve Davis, executive vice president and president, wholesale. Initially, our focus will be on the smooth integration of the Kmart business in the region. This expanded service area also provides Fleming with the means to supply a wide range of retail operations in new markets.

The Perryman distribution center has 600,000 square feet and the Suffield facility has 675,000 square feet.

Fleming, which moved its headquarters from Oklahoma City to Dallas in mid-2000, also said it has signed a supply arrangement with Eagle Food Centers in Milan, Ill., to supply health, beauty care and general merchandise products to the 64 supermarkets. Service is expected to begin by the end of April from Fleming's Topeka General Merchandise Division.

Fleming had sales in 2000 of $14.4 billion and serves about 3,000 supermarkets, 3,000 convenience stores and 1,000 supercenters, drug and other types of stores.

Minneapolis based Supervalu had sales of $23.2 billion in 2000 and operates 1,194 stores including 727 licensed locations under the Save- A-Lot banner. The company serves as the primary supplier to 3,200 supermarkets and is the secondary supplier to 2,250 stores.