Rumors Swirl About Potential Genuardi's Sale

No one at will confirm it, but rumors are floating that Genuardi's owner Safeway is looking to sell its Delaware Valley stores, including the one here in the Wynnewood Shopping Center.

Two local Genuardi's supermarkets have closed in the past month: the Eagleville location on Oct. 8, and the Kimberton store on Oct. 15. The two stores, located in Montgomery and Chester counties, respectively, are the only Genuardi's stores that have closed in 2011. Last year, seven Genuardi's stores were closed, including ones in Newtown Square, Chesterbrook, Lansdale and Glen Mills.

Currently, there are Genuardi's locations in Wynnewood, St. Davids, Springfield and 24 other locations.

Food Trade News reported this month that multiple sources have indicated Safeway is looking to sell its remaining Genuardi's stores and will come to sales agreements in the near future—likely before the end of 2011.

"I have no knowledge to suggest that this is anything other than a rumor."—Maryanne Crager, Genuardi's spokeswoman

Giant Food Stores is one retailer said to be in the mix. Food Trade News reported sources indicating Giant may want to acquire as many as 18 Genuardi's stores. Giant took over two Genuardi's stores in Warrington and Feasterville (Bucks County) last year, placing them under the Giant banner.

Genuardi's public affairs manager Maryanne Crager said rumors of stores being sold have been around since the Genuardi's family sold the company to Safeway in 2001.

"We really don't comment on rumors," Crager said. "There are always rumors out there, and I have no knowledge to suggest that this is anything other than a rumor."

A manager at the Wynnewood Genuardi's also indicated that he had no knowledge of a sale or potential bidding for the store.

Crager said those decisions are made at the upper echelons of the company.

"Whatever is happening—if anything is happening—is not something we're privy to at this level," she added.

The nearby stores closed this month were underperforming, according to Crager.

"Eagleville in particular was quite an old location—it had been open for over 20 some years, and it had a smaller footprint. It was not a big store, and was without the amenities that larger, newer stores have," Crager explained.

The Wynnewood location was opened in 2000, and occupies 98,000 square feet of space, according to the website of Federal Realty Trust (NYSE: FRT), owner of the the Wynnewood Shopping Center.

A Federal Realty representative said that the company does not comment on its clients' business matters.

Genuardi's has a large ready-made section ("The Kitchen"), and is regarded as one of the better chain stores with in the area. Some other large retailers, like Shop-Rite and Acme, offer substantial kosher selections, but Giant's kosher section at most of its stores is considerably smaller.

*

Patch will update this story as more concrete information becomes available. If you have any information on the deal, contact the reporter, or the editor at tom.walsh@patch.com.