Bashas’, “Arizona’s hometown grocer,” announced late last week that the company is being sold to Raley’s Holding Company, an independent grocery chain based in Sacramento, Calif. The sale is said to include all of Bashas’ brands, AJ’s Fine Foods and Food City.

Bashas’ is a family grocery chain founded in Chandler 90 years ago. The company opened the first grocery store in Fountain Hills in the 1970s, which continues to operate at Palisades Boulevard and La Montana Drive.

Company officials say Bashas’ will remain as it is in Arizona and in fact, they believe Raley’s will expand the Bashas’ brand.

There will be no changes in management or employees. Bashas’ will be an operating company within the Raley’s corporate structure. All stores, along with the corporate offices and warehouse, will continue to operate as they are.

Bashas’ has more than 100 stores in Arizona, New Mexico and the Navajo Nation. The company was known for expanding operations to tribal nations when no one else would.

Edward “Trey” Basha, company president/CEO said the sale is not due to poor performance or financial difficulties. He said the current market is not good for small regional grocers.

“Today’s announcement represents the beginning of Bashas’ next, exciting chapter as a fully formed operating company within the larger Raley’s enterprise,” Basha said. “In Raley’s we will have a partner who will ensure we continue delivering exceptional customer and member experiences at a time when regional grocery competition has never been tougher – while staying true to the values that have shaped our history over 90 years.

“We needed to look to the future and take an honest assessment of where we are at. Size and scale have become more important in our industry.”

Basha said scale became very important in being able to acquire product for stores during the pandemic. The new company with a combined total of more than 200 stores will be positioned better to compete.

“Customers, members, and local Arizona communities will also benefit from the seamless alignment of culture and values that we share with Raley’s,” Basha said. “While the Basha family will no longer have ownership roles, we look forward to seeing the business thrive for generations to come.”

“The Bashas’ company is strong and well-positioned in the market,” Raley’s CEO Keith Knopf said in a statement. “We are confident that with our robust digital capabilities and combined purchasing power, we can further enhance the overall customer experience.”

Raley’s operates 124 stores in northern California and Nevada with four banners – Raley’s, Bel Air, Nob Hill Foods and Raley’s O-N-E Market. The company also owns Apium Logistics as well as a digital subscription technology company.