The deal is part of the discount grocer’s ongoing efforts to convert corporate-owned stores to local ownership. The 32 stores generate annual revenues in excess of $130 million, immediately positioning Yellow Banana as one of Save A Lot’s largest Retail Partners nationwide.
The company currently offers fresh produce in more than 1,300 stores, providing the top 20 items typically sold in grocery stores and approximately 80 percent of produce categories carried by most grocers. Dollar General plans to expand this offering in up to 10,000 stores, including a meaningful number of stores located in food deserts.
Deep discounter Dollar Tree, famous for its $1 for everything in the store discount positioning, is piloting a new store format that includes fresh produce.
Jack Pestello joins Big Lots following seven years in leadership roles at Walmart and with over 25 years of global retail experience spanning merchandising, sourcing, category and brand development. At Walmart, he most recently served as Senior Vice President and General Merchandise Manager for Walmart's Grocery business.
Emeryville, CA-based Grocery Outlet said in an SEC filing it plans to double, then quadruple store count as it plans an initial public offering.