In an effort to help fund its business transformation plan, discount grocer Save-A-Lot has secured $350 million in new capital. The company, owned by Canadian private equity firm Onex Corp., said last week that it completed a transaction that cut about $500 million in debt and brought an infusion of $350 million from lenders.
Save-A-Lot operates 14 distribution centers and has about 1,125 stores in 33 states, most of which are operated by independent grocers. According to Chief Operating Officer Kevin Proctor, the independent, local nature of its operators allows them to cater to their local communities, something he says that differentiates them from Aldi and Lidl.
Save-A-Lot stores are typically about 16,000 square feet with a heavy focus on private label products.
“We say you need to compete on price, win on convenience, and differentiate on localization,” said Proctor.