Raley’s expands into central Nye County

Raley’s, a California-based grocery store chain, is expanding into central Nye County.

Scolari’s Food & Drug Co., a five-decades-old supermarket brand, is selling its Tonopah location to Raley’s as part of a deal for a half-dozen locations in Central and Northern Nevada.

Scolari’s at U.S. Highway 95 and Air Force Road, adjacent to Tonopah Station, was acquired as part of an acquisition by West Sacramento-based Raley’s for an undisclosed amount. The deal closed on March 21, according to a news release from Raley’s.

“We are confident our customers and employees will be served well under the stewardship of the Raley’s organization,” said Joey Scolari, CEO of Scolari’s Food & Drug, about the deal in a written statement.

Raley’s leadership announced plans to change the name of five of the recently purchased Scolari’s stores, including the Tonopah location.

A Sak ‘N Save location in Reno will keep its name, according to a news release. The Scolari family will remain the operators of two Scolari’s Food & Drug store locations: one in Sun Valley and the other in Sparks.

The transition of the Scolari’s brand grocery stores is expected to be completed by late spring.

The two organizations have something in common, they are both family-owned operations.

“With complementary markets and strong family values, we believe Raley’s was the right partner to assume the operation of the six locations of our family business,” Scolari said.

Raley’s was founded in 1935 and is in its third generation of family ownership at its California headquarters. The company operates 122 stores in Northern California and Nevada and has four labels: Raley’s, Bel Air Markets, Nob Hill Foods and Food Source, according to information on its website.

“I am pleased that Raley’s will reach and serve even more customers. Making healthy and affordable food available to more people aligns with our purpose to infuse life with health and happiness, by changing the way the world eats, one plate at a time,” said Michael Teel, Raley’s chairman and CEO.

Prior to the acquisition, Raley’s had 11 locations in Nevada, one Food Source and two Aisle One gas stations in the state.

“The network of Scolari’s stores offers great synergies in a market we already operate,” said Raley’s chief financial officer Ken Mueller.

According to Raley’s executives, the company plans to add onto what Scolari’s brought to the Tonopah area and in the Scolari’s brand stores across the state.

“We expect to build on the existing customer base by offering even more products and categories at a price that is affordable. The Raley’s team will actively listen to customers, and we look forward to learning what the customers want and need from us,” said Keith Knopf, Raley’s president. “We take seriously the stewardship passed to us by the Scolari family and will work to preserve the positive impact they have created.”

According to a report from the Reno Gazette Journal, the sale falls under the provisions of the Worker Adjustment and Retraining Notification Act (WARN). Under the act’s guidance, employees at the six stores that were under ownership of Scolari’s would no longer be employees of the company after 60 days.

In an interview with the RGJ, Knopf stated: “We have a strong preference—and it is our goal—to rehire as many of the existing Scolari’s team members as possible, and hope that their interest is high.”

Knopf also told the RGJ that Raley’s has plans to expand food categories, including health and wellness items and lower prices on staple items. Improvements to the overall store decor and experience is also planned to occur over time, Knopf said.

Raley’s is no stranger to acquiring family-owned operations. In 1990, the group purchased Nob Hill Foods in the San Francisco Bay area and Bel Air Markets in the Sacramento area.

Contact reporter Jeffrey Meehan at jmeehan@pvtimes.com. On Twitter: @pvtimes