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Associated Food Stores will be closing its sixth corporate-owned store on March 25 when the Fresh Markets supermarket in Cottonwood Heights is shuttered.
The Fresh Market store was part of 34 Albertsons locations that Associated Food purchased in 2009. Company officials say the store's weak sales and its close proximity to other sister stores, which are members of Associated Food, made the closing necessary.
"We knew when we purchased the group of stores that there would be challenges with some locations," said Neal Berube, president of Fresh Market. "Closing a store is never an easy decision, and we are sensitive to the communities that will be affected by this announcement. Our stores have always had great people serving guests, and we look forward to continuing that service in our many other locations."
Salt Lake-based Associated Food also closed two Fresh Market stores in Salt Lake City and one in Provo.
Last year, Associated Food closed its corporate-owned Dick's Marketplace in Layton and its Lin's Marketplace in Richfield.
"During these difficult times, locally owned businesses are facing extraordinary challenges," said Rich Parkinson, president and CEO of Associated Food Stores. "Having served this market for 70 years, Associated Food Stores supplies local grocers who represent the only locally owned and operated grocery stores in Utah. We have many stores succeeding in the area, and we encourage our many loyal shoppers to continue their support at other locally owned grocery stores."
Last June, grocery store owners in eight Western states were told that they would have to pick up losses from Associated Food's $167 million purchase of the Utah Albertsons supermarkets. The stores helped wipe out profits for Associated Food, which also supplies 600 independent grocers.
Associated posted nearly $2.5 million in systemwide losses for 2010 — its fiscal year ended in March — compared with the prior year's profits of $2.4 million. While declines came from lower sales at corporate and member-owned stores, the biggest losses were attributed to the Fresh Market chain.
Associated Food is an independent, retailer-owned warehouse that provides products and services to independent grocers, including Ream's, Winegar's, Kent's and Harmons. Associated Food also owns stores operating under the Dick's, Lin's, Macey's and Dan's Market banners.