Giant Owner Buys Ukrop's Chain; Roanoke Store Was Leased, Not Owned by Ukrop's

Ukrop's President and CEO Bobby Ukrop (right) with Rick Herring, Giant-Carlisle Division President Rick Herring looks on.

(Updated 10:30 p.m. Thursday and 9:50 a.m. Friday)

Twenty-five of the 27 Ukrop’s stores in Virginia have been sold to Royal Ahold, operator of the Giant chain, according to a number of published sources. Two Ukrop's stores are not part of the deal, according to the Washington Post. Roanoke recently-closed store is not likely a part of the deal, since it was leased.

The Roanoke store at Ivy Market is owned IMD Investment Group and developed by Painter Properties of Botetourt County. Ukrop's leased the Ivy Market property. The company is looking for a new tenant. The other closed market is in York County and Ukrop's retains ownership of the building, according to the Virginia Gazette. Neither store is mentioned in the reports on the sale. Ukrop's has 27 Virginia stores. The Fredricksburg store will be closed and a in Spotsylvania and Richmond (Joe's Supermarket) were not bought, according to Business Browser.

The Richmond Times-Dispatch reports, "The [Ukrop] family is selling ... 25 stores--24 in the Richmond area, one in Williamsburg and possibly a piece of property in western Henrico County off Nuckols Road for a future store."

According to the Post, "The deal, which encompasses all inventory, equipment and leases agreements, will close in the first quarter of next year. Ahold spokesman Jochem van de Laarschot said the company plans to retain Ukrop's more than 5,000 employees."

Royal Ahold is a Dutch company that owns Giant-Carlisle, which has 26,000 employees at its 150 stores in the U.S. and 2,893 stores internationally, according to reports. Ukrop’s is a 62-year-old chain based in Richmond.

The Henrico Citizen says the sale price is $140 million and that Ukrop's will continue to operate under that name, at least for now, though the Times-Dispatch says that eventually the stores will become Martin's Food Markets, another small chain Giant owns with a presence in Virginia. Giant-Carlisle Division President Rick Herring says officials also look at whether stores will open on Sunday and whether to sell alcohol. Ukrop's did not.

The Citizen reported, "Leaving the grocery retail business was a difficult decision," Ukrop's President and CEO Bobby Ukrop said, his voice wavering at times during portions of the press conference. "There's a time for everything. We've had a really long run."

According to The Citizen, the sale will provide "long-term security and an even greater growth opportunity for our associates." Ukrop's, a small chain, has struggled in recent years to deal with rising costs and lack of bargaining power with suppliers. That will change with the introduction of a much larger owner, he said. (Ahold operates 2,893 stores internationally.)

Compiled by Dan Smith

(Henrico Citizen photo.)