Orange County Register

Smart & Final, which has built its reputation as a go-to warehouse for party merchandise and restaurant-quality food supplies, is planning to overhaul its concept to carry a broader assortment of groceries.

And — Orange County will be ground zero for several prototype stores, the Los Angeles chain said this week.

New Smart & Final store will increase in size by 10,000-square-feet to make room for expanded offerings in the frozen foods, snacks, cereals, deli and produce sections, said company chief executive George Golleher. The first one will open later this summer in Stanton.

New stores will also carry a large variety of grab-and-go meals and will add departments dedicated to baby and beauty care. Currently, Smart & Final stores do not carry diapers, formula, shampoos and other drugstore type items.

The changes are part of a strategy to give shoppers a one-stop shopping experience by stocking items found at a grocery warehouses, traditional supermarkets and drugstores, said Golleher.

By the end of 2009, the 180-unit Smart & Final plans to add about 20 more domestic locations. Besides, the 30,000-square-foot Stanton store, Smart & Final will build new locations in Huntington Beach, Fullerton and La Habra. (All three are former Drug Emporiums.)  Some new stores are also planned in Los Angeles County.

“We wanted to go to Orange County first because we think (the new concept) will have great appeal there,” Golleher said.

He declined to provide sales figures for Smart & Final, which up until a year ago was a publicly-traded Los Angeles-based company. Smart & Final, founded in 1871, merged with private equity firm, Apollo Management, last year in a deal valued at $812 million. Smart & Final also owns Henry’s Farmers Market stores.

Stanton Smart & Final: 7050 Katella Avenue in Stanton. The property, a former Albertsons, is owned by Seal Beach based-Heslin Becker, which leased the building to Smart & Final earlier this week. The store could open by late August.

(Photos courtesy of Smart & Final website.)

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• Details revealed on Wal-Mart’s new Marketside concept (FT.com)
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