Acquisition of Morton Williams by Wakefern Food Corp.

Morton Williams, a luxury supermarket chain in New York City, will soon be acquired by Wakefern Food Corp., the owner of Shoprite, according to an announcement made on Thursday.

Founded by the Sloan family in 1952, Morton Williams will maintain its 17 locations throughout New York City, as co-owner Avi Kaner confirmed. This decision comes as larger grocery chains like Trader Joe’s, Wegmans, and Whole Foods have been expanding rapidly. “We didn’t really have the resources,” Kaner mentioned, “but this is a growing company.”

The financial details of the deal haven’t been disclosed, but both companies are privately owned, which adds a layer of intrigue. Kaner indicated that Wakefern, a cooperative owned by 40 families, is looking to broaden Morton Williams’ presence within the New York Metro area and beyond.

Currently, Wakefern operates over 360 stores across the Northeast, and Morton Williams stands out as one of the few remaining independent grocery chains in New York City. However, it faces challenges from increasing competition, shoplifting issues, and the ongoing consolidation in the market. Indeed, Trader Joe’s and Amazon, which purchased Whole Foods for $13.7 billion in 2017, are both expanding their footprint in the city.

In addition, Gristedes, under billionaire John Catsimatidis, runs about 30 stores in the city and acquired the D’Agostino’s chain in 2016. Wakefern had also added Fairway Market in 2020.

The acquisition deal was finalized on Wednesday and is expected to close by September 30th, as noted by Kaner. The supermarket chain employs over 1,000 staff members, who are represented by a local retail and wholesale union.

Kaner expressed optimism about the acquisition, stating, “This is a fantastic opportunity to carry on the legacy of a storied New York grocery store while enhancing product offerings and value for our customers. Wakefern is dedicated to honoring Morton Williams’ rich tradition.”

Morton Williams has its roots in the Bronx, founded by Joe and Irving Sloan. The business, expanded by Joe’s sons Morton and William into Manhattan, is now managed by a third generation, including Kaner, who is Morton Sloan’s son-in-law.

The chain opened its 68th and 17th stores on Broadway last year, while also confirming its contract during the pandemic. “We could have potentially negotiated for five more stores,” Kaner noted, “but there just wasn’t the capacity to do so at that time.”