Roundy’s Supermarkets Inc. announced an exit from the Minneapolis, MN market with plans to sell 18 of its 27 Rainbow Stores to a consortium of buyers. The remaining nine stores plan to also be sold or closed over the next few months. Roundy’s CEO Robert A. Mariano called the moves a plan to ‘right-size our infrastructure.’ The buyers of the initial 18 Rainbow stores joined SUPERVALU to execute the purchases, and include Jerry’s Enterprises, Haug Enterprises, Lund Food Holdings, and Radermacher Enterprises. Roundy’s is shifting focus on ‘optimal’ operation in its home state of Wisconsin, while also focusing on expanding the Mariano’s store format. According to Mariano, performance at these stores is high with positive same store sales growth and weekly sales exceeding $1 million per store.
According to a SUPERVALU press release, ‘SUPERVALU will have 100 percent ownership in three CUB stores, majority ownership in two CUB stores, minority ownership in three CUB stores and 100 percent ownership in two Rainbow stores as well as 100 percent ownership interest in eleven pharmacies. Roundy’s will be selling these 18 stores for approximately $65 million plus inventory. SUPERVALU’s aggregate purchase price across its multiple purchase agreements is approximately $35 million in cash plus the cost of inventory that will be purchased at the closing of the Rainbow store sale. In addition, as part of the transactions, SUPERVALU will assume certain lease obligations and certain multi-employer pension liabilities related to the stores being acquired by SUPERVALU.’ The transactions are expected to close later this summary.
According to data from Chain Store Guide’s 2014 Grocery Industry Market Share Report, Cub Foods will be strengthening its number one market position in the Minneapolis, MN metro core-based statistical area (CBSA) market.
MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI Metro CBSA*
Counties – ANOKA, CARVER, CHISAGO, DAKOTA, HENNEPIN, ISANTI, LE SUEUR, MILLE LACS, RAMSEY, SCOTT, SHERBURNE, SIBLEY, WASHINGTON, WRIGHT – MN; PIERCE, SAINT CROIX – WI
| Company Name | Trade Name |
Area Stores |
Current Market Share |
| SUPERVALU Inc.: EDEN PRAIRIE, MN | Cub Foods |
52 |
16.10% |
| Walmart Stores Inc.: BENTONVILLE, AR | Walmart Supercenter |
24 |
15.50% |
| Target Corporation: MINNEAPOLIS, MN | SuperTarget; Target PFresh |
54 |
10.40% |
| Roundy’s Supermarkets Inc.: MILWAUKEE, WI | Rainbow Foods |
27 |
9.70% |
| Costco Wholesale Corp.: ISSAQUAH, WA | Costco Wholesale |
6 |
8.90% |
| Lund Food Holdings Inc.: EDINA, MN | Byerly’s; Lunds |
22 |
7.70% |
| Sam’s Club: BENTONVILLE, AR | Sam’s Club |
9 |
7.30% |
| Whole Foods Market Inc.: AUSTIN, TX | Whole Foods Market |
6 |
3.00% |
| Trader Joe’s Co.: MONROVIA, CA | Trader Joe’s |
7 |
2.70% |
| Aldi Inc.: BATAVIA, IL | Aldi |
29 |
2.60% |
| Coborn’s Inc.: SAINT CLOUD, MN | Cash Wise Foods; Coborn’s |
12 |
2.10% |
| Kowalski’s Companies Inc.: WOODBURY, MN | Kowalski’s Market |
9 |
2.10% |
| Knowlan’s Super Markets Inc.: SAINT PAUL, MN | Festival Foods; Knowlan’s Food Market |
9 |
1.70% |
| Jerry’s Enterprises Inc.: EDINA, MN | Country Market; Cub Foods; Jerry’s Foods |
5 |
1.60% |
| SpartanNash Company: BYRON CENTER, MI | Econofoods; Family Fresh Market |
6 |
1.10% |
| The Marketplace: ANNANDALE, MN | Cub Foods; The Marketplace |
4 |
0.80% |
| Radermacher’s Fresh Market: JORDAN, MN | Cub Foods; Radermacher’s Fresh Market |
4 |
0.60% |
| J & L Enterprises Inc.: CHASKA, MN | Cooper’s Foods |
3 |
0.60% |
| Family Dollar Stores Inc.: MATTHEWS, NC | Family Dollar |
40 |
0.50% |
| Other operations |
143 |
5.00% |
*Source: Chain Store Guide’s 2014 Grocery Industry Market Share Report
