Raley's, a privately-held, family-owned supermarket chain on the West coast of the U.S., announced that it will sell its 10 stores in New Mexico to Albertsons LLC. The reason for the sale is that Raley’s management wants to focus on its core markets in California and Nevada. The sale of the nine operating stores and one non-operating site will be completed in August 2007 when Albertsons LLC transitions the Raley's stores to Albertsons stores.

"We decided to sell our New Mexico stores so we can focus our energy and efforts on our core markets in Northern California, the Bay Area and Northern Nevada," said Raley's President & CEO, Bill Coyne in a company statement. "It was a difficult decision because our incredible employees in New Mexico have worked hard to make those stores successful and memorable for customers, but it is a decision that will bring further strength and continued growth to our company."

Raley's entered the New Mexico market in 1999, with the purchase of eight stores. There are roughly 840 employees working in the nine stores and the New Mexico district office. With the sale of the New Mexico stores, Raley’s store network is 130 stores in Northern California, the Bay Area and Northern Nevada. The stores trade under the banner names Raley's, Bel Air, Nob Hill Foods and Food Source. Raley’s had revenues of US$3.4 billion in fiscal 2007 and it employs 16,000 people.

Albertsons LLC is a private company, controlled by an investment group led by Cerberus Capital Management. Its chief executive officer Bob Miller said to Associated Press that the company is looking forward to a larger operation in New Mexico. Albertson's has 28 stores in the state, including eight in the Albuquerque area. Once the sale is complete, the 10 Raley's stores would become part of Albertson's Southwest division, which also includes stores in Texas and Arizona.