A increased number of deals in the US grocery chain market had been seen by industry observers. According to a Reuters report, grocery retailers such as Spartan Stores and Harris Teeter had been turning to private equity firms to cope with increasing competition from both high-end and mass retailers.

Delhaize, a Belgium-based retailer, had sold its three supermarket chains in the US to Bi-Lo Holdings for USD265 million. The month of July this year saw Kroger Co acquiring regional grocery chain Harris Teeter Supermarkets Inc for USD2.5 billion. Spartan Stores Inc had consolidated with Nash Finch Co, in turn making the newly-merged companies the US military stores' largest food supplier.

Even Safeway Inc was not spared with the competition. The largest mainstream grocery chain in the US had since exited from its noncore units to focus on its core business. Safeway's gift card provider Blackhawk Network Holdings Inc was spun off as an independent, publicly traded company by selling a 19% ownership stake to the latter's new owners. Safeway's Canadian operations are now owned by the operator of retailer Sobeys for USD5.8 billion in cash.