Even though Publix has agreed to acquire 10 Richmond area Martin’s supermarkets from Ahold USA, the first store will not open until 2017 and perhaps not until the middle of the year.
According to Federal Trade Commission’s (FTC) consent order sanctioning the merger between Ahold (which will control 61 percent of the new company) and Delhaize, the 10 Richmond area supermarkets that Publix will acquire will shift to the Lakeland, FL merchant’s control within 180-360 days of the merger completion. The joining of two of the largest retail chains in both Europe and the U.S was approved on July 23 but won’t be finalized until 30 days later when a public comment period has expired.
The first group of Martin’s stores that will become Publix units are located at: 4951 S. Laburnum Avenue; 2250 John Rolfe Parkway; and 10250 Staples Mill Road. Those three stores must be closed within 180 days.
Future Publix stores that must be closed within 240 days include locations at: 3460 Pump Road; 10150 Brook Road; 13700 Hull Street Road; and 3107 Boulevard in Colonial Heights.
The last of the batch of supermarkets that Publix will ultimately purchase – 7055 Three Chopt Road; 9645 W. Broad Street; and 3522 W. Cary Street – would have be shuttered within 360 days of the completed merger.
Once Publix takes possession of those 10 stores it will close each of them reportedly for 6-8 months to fully renovate those units and hire new associates (former Martin’s associates will certainly reapply for positions in the company). Both Martin’s and Publix are non-union operators.
The FTC announcement states that the length of the Publix transaction will give the fast-growing southeast chain sufficient time to secure permits and approvals needed for remodeling and construction work. The FTC report also notes that Publix may rebuild several of its existing stores. Prior to the Martin’s deal, Publix announced that it would enter the Richmond market in 2018 by building a new store on Nuckols Road in Glen Allen, VA
So, as it currently stands, all 20 Richmond area Martin’s units (including one in Williamsburg) continue to remain open – albeit in lame duck mode. The 10 stores that Publix will not acquire will be re-marketed as Martin’s attempts to exit the Richmond market in the next 12 months. The 45 Food Lion stores, now owned by the new parent company, are not affected and will remain open.
Those 10 Martin’s units that will be re-marketed are located at: 10001 Hull Street Road; 7045 Forest Hill Avenue; 5700 Brook Road; 11361 Midlothian Turnpike; 5201 Chippenham Crossing Center; 253 N. Washington Hwy., Ashland; 12601 Jefferson Davis Hwy., Chester; 6401 Centralia Road, Chesterfield; 200 Charter Colony Pkwy., Midlothian; and 4660 Monticello Avenue in Williamsburg.
Ahold USA entered the Richmond market in 2010 with the acquisition of 25 Ukrop’s stores (the market leader at the time) for $140 million.
As for the other retailers that acquired 76 other Food Lion, Giant/Landover, Stop & Shop and Hannaford stores in the Mid-Atlantic, the Lower Hudson Valley in New York and the greater Boston area, all of them will reopen their new stores far sooner than will Publix.
Weis Markets, which was the largest purchaser in the bidding derby (38 Food Lion units), will begin the remodeling process just after Labor Day and expects to have all stores converted by the end of October.
Supervalu, which acquired 22 Food Lion units in Western Maryland, West Virginia and Central Pennsylvania, should also begin its remodeling/conversion effort in the next 6-8 weeks. Those stores are expected to be operated by former Supervalu executives Bill Shaner and Tom Jamieson under the Shop ‘n Save banner.
Big Y, which acquired eight Hannaford units in the Boston area, will utilize the seven day period from September 7-14 to convert the stores.
Similarly, Tops Markets (six Stop & Shop stores), Acme Markets (one Giant/Landover store in Salisbury, MD) and independent retailer Saubel’s (one Food Lion in York, PA) are expected to move quickly once they gain possession of those stores early next month.
