At a Glance

  • Harps Food Stores plans to acquire 18 stores from independent grocer Dyer Foods, entering Tennessee and Kentucky.
  • The deal is expected to close this summer, involving 17 stores in western Tennessee and one in Kentucky; specific terms were not disclosed.
  • This acquisition is the latest step in Harps' expansion strategy around states neighboring its Arkansas headquarters.

In-Depth Analysis

Harps said Dyer Foods has notified employees that its stores in western Tennessee will continue operations with signage, employment, and operations "with minimal change or disruption."

The stores involved in this transaction are all in small towns in western Tennessee, aligning with Harps' growth strategy focused on rural markets. Additionally, the deal includes a store in Fulton, Kentucky.

"We are excited to acquire these stores from the Hayes family," said Kim Eskew, Harps' chairman and CEO, in a statement. "We love small stores in small towns, and these stores fit our strategy perfectly. We have the utmost respect for what the Hayes family and their employees have accomplished, and we look forward to this great team joining our company."

Over the past few years, Harps has significantly expanded its footprint through similar deals, becoming a major regional grocer.

Last year, the company acquired 10 stores in Oklahoma (according to the Northwest Arkansas Democrat-Gazette); a few years earlier, it entered Louisiana and Mississippi through a seven-store acquisition (according to Arkansas local TV station 5News). In early 2020, Harps acquired 20 stores in northeast Arkansas and Missouri from Town and Country Grocers. Additionally, Harps has acquired several single stores over the years, including locations in Fairfield Bay and Mena, Arkansas, last year (according to The Shelby Report).

Overall, Harps has nearly doubled its store count over the past six years or so. Once the latest deal closes, it will operate 178 stores across eight states.