Grocers Supply Deepens Hispanic Market Lead

HOUSTON-An opportunity to expand into Hispanic communities throughout Texas was the driving force behind Grocers Supply Co. Inc.’s proposed acquisition of Minyard Food Stores Inc.’s Carnival Super Market brand. A local retail pro says the move makes good sense for locally based Grocers Supply and its subsidiary, Fiesta Mart Inc.

“Fiesta looks for a high-concentration Hispanic demographic for their grocery stores and Carnival is similar,” says Lyle Cowand, senior vice president in Houston for Dallas-based Weitzman Group. “In areas in which Fiesta isn’t a player, such as Dallas, Carnival is strong, which will give Fiesta greater market penetration. I see it as a pretty smart move.”

According to a press release about the transaction, Grocers Supply will acquire 23 Carnival supermarkets, five Minyard stores, five fuel centers and nine Sack ‘n Save warehouse stores from the Coppell, TX-based Minyard Food Stores. Telephone calls to Grocers Supply and Fiesta were not returned by deadline.