JOLIET, IL - After showing strong results on the wholesale side of its most recent financial report, SuperValu is making moves in the Chicago-area scene. Acquiring a former Central Grocers-owned distribution center for $61 million dollars in the nearby city of Joliet, analysts say this will help SuperValu to provide to more independent retailers in Chicago. The deal was approved by a bankruptcy court judge on Tuesday.

As reported by the Chicago Tribune, the move will expand the number of items consumers will see in stores chains that had been primarily served through Central Grocers wholesale business. The now-bankrupt company operated as a wholesaler for more than 400 independent stores in the Chicago area, and SuperValu has been able to acquire business from many of those that would have been left without supplies.

"This can only be a good thing for independent retailers in the Chicago area... These large, national wholesalers will allow small, independent retailers to play bigger than they really are because of their resources and support," Jon Hauptman, Senior Director of Retail for grocery consulting firm Willard Bishop, told the Chicago Tribune.

This news comes in the wake of positive news from the wholesale side of SuperValu’s business. A double digit increase in net sales in the division during Q1 2018 gave the company’s shares a nearly 10 percent jump earlier this week. SuperValu also made final its $390 million acquisition of Unified Grocers last month.

Will doubling down on more wholesale business pay off for SuperValu and its investors? Stay tuned as AndNowUKnow continues to survey the buy-side scene.

SuperValu