Kroger announced on Wednesday that it had reached a deal to acquire 20 Farmer Jack stores in metro Detroit from A&P.
"Kroger picked up the cherries," David Livingston, principal at DJL Research and RetailWire BrainTrust panelist, told the Detroit Free Press. "How many stores were left in the city of Detroit anyhow? Farmer Jack abandoned the city of Detroit a while ago, along with everyone else."
Bruce Macaulay, president of Kroger's Great Lakes division, said in a released statement, "We are excited to welcome Farmer Jack customers into our family of Kroger stores. We look forward to continuing Farmer Jack's tradition of great customer service and quality stores as we expand in this market."
The Farmer Jack stores included in the sale agreement are located in the Detroit suburbs of Algonac, Birmingham, Brownstown Township, Dearborn Heights, Dearborn, Grosse Pointe, Hartland Township, Hazel Park, Imlay City, Northville, Romeo, Roseville, St. Clair Shores, Sterling Heights, Troy, and Westland.
"There's also no guarantees that Kroger will keep those stores open," Mr. Livingston said. "They might change banners to Kroger at some stores and close others and hope the business goes to nearby Kroger stores."
Kroger and A&P are expected to close the sale for the stores in July. Kroger has already begun looking to hire 3,000 workers for the new stores. It said it expects to interview those currently working at the Farmer Jack stores.
Discussion Questions: What do you expect from Kroger once it takes ownership of the 20 Farmer Jack locations? Are you surprised that Kroger chose not to buy any Farmer Jack stores in Detroit proper?