Over the past twenty years the quality of urban grocery stores (UGROs) has significantly declined as major grocers expanded into higher growth, suburban, markets. This exodus created what the US Department of Agriculture and health experts refer to as “food deserts” - an entire neighborhood, or a cluster of neighborhoods, without a mainstream grocery store. On a day to day basis, residents leave their neighborhoods to access basics such as raw meat and fresh vegetables and travel twice as far to reach a "grocery store" as they do to reach a fast-food restaurant. The UGRO void has been consistently underserved and is now filled by local gas stations, bodegas and delis providing high calorie, unhealthy and expensive fast food products.
Urban Grocers International, Inc. will operate both branded and unbranded grocery stores specifically designed for the urban grocery market. A typical branded urban grocery store would be the Save-A-Lot brand, while the unbranded would be an independent non Save-A-Lot store. Both stores will operate from a strip mall or shopping center in an ethnically-rich or diverse neighborhood with close ties to the community.
Urban Grocers International intends to acquire a group of branded grocery stores located in the Northeast by the beginning of Q2 2014. This acquisition will generate revenues exceeding $200 million and employ 870 people in the UGRO markets served by Urban Grocers branded and unbranded lines..
Click here to learn more about "food deserts".