Save Mart distribution center to close Merced County location

The Save Mart Companies, which operates 194 stores, including 79 under the Save Mart name, confirmed Wednesday that it plans to close the Yosemite Wholesale Distribution Center in Merced in November.

The company closed its Roseville Distribution Center in August.

“Over the past year, The Save Mart Companies has continued to maximize supply chain efficiencies to better support our stores and customers. During that time, we’ve made several changes to our supply chain function including the closure of our Roseville Distribution Center and now Yosemite Wholesale Distribution Center in Merced, CA,” the company said in a statement.

The statement went on to read “ we are committed to supporting all associates impacted through this transition. We are confident these changes will help us complete, grow our business, and meet the needs of our customers and communities moving forward.”

According to the State of California Employment Development Department, The Save Mart Companies submitted a Worker Adjustment and Retraining Notification (WARN) notice on Tuesday. According to the notice, Save Mart Supermarkets LLC dba, Yosemite Wholesale Company, will close the Yosemite Wholesale Distribution Center in November of 2024 and the closure is expected to be permanent. According to the notice, a total of 254 individuals will be affected by the facility’s closing.

Merced Mayor Matthew Serratto called the facility closure is a huge blow to the community.

“It was very sad and heartbreaking to see that happen and any business, any employer let alone one as significant and historic as that, it’s just a big loss to our community,” he said.

According to Serratto, Worknet Merced County is currently offering their services to employees who will be affected by the closure.

“We certainly hope that they find comparable employment and I think our team is certianly there to help as best as possible,” he said.

Serratto said the city will continue to work hard and fight to make Merced’s economy as strong as possible.

Erick Serrato, director of Workforce Investment - Worknet Merced County, called the scheduled closure of the facility a big loss to Merced County. According to Serrato, the Yosemite Wholesale Distribution Center was an employer that Worknet of Merced County has worked with while investing in training programs and other initiatives to help connect local workers with jobs at the facility.

“It’s a big loss because they were such a positive employer,” Serrato said. “At the same time, we’ve heard form some of our other employers we have relationships with that are eager to pick up some of those workers and so we’re currently working with them and with Save Mart to see how many of those that we can transition over into new jobs.”

According to Serrato, Foster Farms has expressed interest in speaking with some of the workers who will lose their jobs when the faculty closes and Merced College has reached out expressing interest in helping workers transition into new roles if additional training is required.

Serrato said that Save Mart working with Worknet Merced County and that the closure of the facility is not occurring for about two months, somewhat minimizes the impact to the county.

“As big of a loss as this is, the long-term effects won’t be as significant as they could be.”

According to Serrato, the Merced County economy is relatively strong with other opportunities available for workers with this particular set of skills.

“It’s certainly bad news, but I think we’re going to be OK.”

Worknet Merced County serves the community by utilizing funding dedication to assist individuals who have lost their job through no fault of their own. It also provides programs through its partnerships with community colleges and vocational training facilities while focusing on helping workers transition into their new job as quickly as possible.

The Canadian-based Jim Pattison Group purchased Save Mart in June of 2024 with the sale including FoodMaxx and Lucky stores. Save Mart, which is headquartered in Modesto, was previously sold to Kingswood Capital Management LP, a private equity firm based in Los Angeles in 2022.