Kroger, the leading US grocery retailer, has announced it has divested its stake in Lucky’s Market, a Colorado-based chain of food stores specializing in organic products.
The disposal comes less than four years after the two firms announced a “strategic partnership”, with Kroger making a “meaningful investment” that was designed to increase Lucky’s Market’s store footprint. The sale of the stake reportedly resulted in Kroger being hit with a $238 million impairment charge.
Commenting on the move, which will see Kroger largely move out of smaller format and convenience retailing, Kroger chief financial officer Gary Millerchip said: “As part of a portfolio review, we made the decision to evaluate strategic alternatives in relation to our investment in Lucky’s Market”, adding: “We do believe that there’s still a role for the small format store”.
Source: Food Business News / Progressive Grocer