Friday, December 9, 2022

Farm Fresh stores in Grafton, JCC to be sold

The Farm Fresh on Merrimac Trail closed in October. (Andrew Harris/WYDaily)

Two Farm Fresh stores in Greater Williamsburg are being purchased by rival grocers.

Parent company SuperValu, Inc. announced Wednesday evening it will sell 21 of its 38 Farm Fresh stores, according to a news release. The stores are located in eastern Virginia and Elizabeth City, North Carolina.

Three different retailers – Kroger, Harris Teeter and Food Lion – will purchase the Farm Fresh locations for a combined $43 million.

Harris Teeter is purchasing the Farm Fresh on John Tyler Highway in James City County, and Kroger will buy the store on George Washington Memorial Highway in Yorktown.

The Farm Fresh in Norge was not among those named.

The transactions are expected to close in May, according to the release, and the inventory at the affected stores will be liquidated.

Two Farm Fresh stores in Greater Williamsburg closed in 2017, as the supermarket has struggled in a competitive grocery marketplace.

More than a dozen stores across the Southside are also being sold.

SuperValu President and CEO Mark Gross said the decision will allow the company to allocate more resources to their wholesale operations.

“We are confident our efforts are driving growth and enhancing our competitive position,” Gross said. “This decision was not taken lightly given the impact on our employees and the communities we serve, but we strongly believe this decision is in the best long-term financial and strategic interest of our business. Our leadership team and board of directors remain committed to taking proactive steps to transform our business and drive stockholder value.”

Harris Teeter is purchasing 10 of the Farm Fresh locations. Kroger is buying eight stores, and Food Lion is buying three.

Farm Fresh was founded in 1957 and has operated in Virginia for 60 years. The company currently employs about 3,300 associates. SuperValu employs around 31,000 people across more than 3,300 stores nationwide, under five different retail companies.

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