"Fiesta looks for a high-concentration Hispanic demographic fortheir 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, Carnivalis strong, which will give Fiesta greater market penetration. I seeit as a pretty smart move."

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

Grocers Supply plans to let 11 stores roll to the 50-storeFiesta Mart and flip most of the balance to other retailers in itssupply chain, according to the release. The acquisition is expectedto close by the end of this year.