Supervalu Inc. currently operates the facilities. Fleming, which has been aggressively securing contracts nationwide, plans to use the facilities to supply Kmart and Kmart supercenter stores by summer. In February, Fleming had secured a 10-year contract in a $4.5-billion annual procurement and distribution alliance.

"These distribution facilities will provide important geographic coverage that allows Fleming to expand its distribution network north to Maine," says Steve Davis, Fleming's executive vice president and president of the wholesale division. "Initially, our focus will be on the smooth integration of the Kmart business in the region. This expanded service area also provides Fleming with the means to supply a wide range of retail operations in new markets."

Throughout the aggressive buildup, Fleming officials have not returned GlobeSt.com's numerous telephone calls about a strategy that has stripped smaller stores from its supply chain in favor of nationwide contracts such as Kmart. The strategy has been gaining strength since early fourth quarter 2000.

Fleming is a $14-billion company and industry leader in distribution and has a growing presence in value retailing. It is now serving about 3,000 supermarkets, including more than 700 North American stores of global supermarketer IGA and other regional banners, 3,000 convenience stores and nearly 1,000 supercenters, discount, limited assortment, drug, specialty and other businesses across the country.