Ukrop's is one of the regional grocery chains in the U.S. that operate stores other retailers want to see. If reports are correct, those other merchants better make travel arrangements to get to Richmond, Virginia quickly because Ukrop's is up for sale.
According to the Food World trade publication, Ukrop's has issued a prospectus to potential buyers including Ahold, Harris Teeter and Supervalu. The chain operates 28 stores in Virginia with 25 in the capital city region. The other stores are located in Fredericksburg, Roanoke and Williamsburg.
Jeff Metzger, publisher of Food World, wrote that issuing a prospectus does not necessarily guarantee a sale is imminent.
"There is no guarantee that any bidder would pay the premium price that acquiring Ukrop's would likely demand. And even if that price were met, it wouldn't be surprising to see the deal be pulled by the Ukrop family which has a deep emotional attachment to the community and to the company itself, which was founded when Joe and Jacquelin Ukrop opened their first grocery store on Hull Street in Richmond in 1937," Mr. Metzger wrote.
Ukrop's recently saw its share of the Richmond market slip from the top spot to number two. Among the factors contributing to this is the chain's policy of closing stores on Sunday and it's policy of not selling beer or wine.
Discussion Questions: What is your reaction to a possible sale of Ukrop's? What does it say about the viability of grocery businesses like Ukrop's around the country?