1. News
January 7, 2019

Stop & Shop agrees to buy King Kullen Grocery

Stop & Shop, a US-based supermarket chain of Ahold Delhaize, has agreed to purchase King Kullen Grocery for an undisclosed sum.

Stop & Shop, a US-based supermarket chain of Ahold Delhaize, has agreed to purchase King Kullen Grocery for an undisclosed sum.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The acquisition is aimed at expanding its business on Long Island, New York.

The deal covers 32 supermarkets, five Wild by Nature stores and corporate office located in Bethpage, New York.

Stop & Shop president Mark McGowan said: “King Kullen is a well-respected grocery chain in the Long Island market that has an 88-year tradition of excellent customer service.

“We look forward to bringing our quality, selection and value to more communities in Nassau and Suffolk Counties.”

“We look forward to bringing our quality, selection and value to more communities in Nassau and Suffolk Counties.”

The transaction is subject to customary closing conditions and is expected to close during the first quarter of 2019.

Boutique investment banking firm The Food Partners served as the financial and strategic advisor to Stop & Shop.

For King Kullen, JP Morgan served as the financial and strategic advisor.

Commenting on the transaction, Ahold Delhaize CEO Frans Muller said: “This transaction underscores our commitment to further strengthen the positions of our great local brands in the US, both through organic growth and fill-in acquisitions.”

King Kullen Grocery also operates pharmacies with online refills, a fresh flower shop, a large deli, catering and prepared foods department, and a local bakery in every store. The company has also piloted online grocery shopping in four stores.

Stop & Shop currently operates more than 400 stores across Massachusetts, Connecticut, Rhode Island, New York and New Jersey. It employs over 61,000 associates across its stores.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.