Roundy’s quits Twin Cities, focuses on Mariano’s - The Packer

Roundy’s quits Twin Cities, focuses on Mariano’s

05/08/2014 11:27:00 AM
Pamela Riemenschneider

Roundy’s Inc. plans to drop its Rainbow banner to focus on core business and expanding its premium Mariano’s concept in Chicago.

The Milwaukee-based retailer said May 7 it has plans to sell 18 Rainbow stores in the Minneapolis-St. Paul market to a group of grocery retailers including Lund Food Holdings Inc. and Supervalu Inc. The remaining nine stores, if unsold, will close at the end of the estimated $65 million transaction.

“We entered the Twin Cities in 2003, becoming the No. 2 grocer in market share,” said chairman, president and chief executive officer Robert Mariano, during the company’s first quarter financial call May 7. “Since then the competitive landscape has changed dramatically as Target and Wal-mart have both invested significantly in the market.”

Roundy’s turned to Chicago and its new Mariano’s concept for growth. The company opened five new Mariano’s in Chicago in the first quarter, for a total of 21 in the Chicagoland area.

“Our strategy today is to focus our efforts where they will provide the most benefit for all of our stakeholders,” he said during the call. “This divestiture allows us to focus our management, capital and other resources to grow our Mariano’s business in Chicago, our growth market, and to stabilize and grow our Wisconsin market, where we have strong market shares.”

Mariano said average weekly sales for Mariano’s stores for the first quarter were approximately $1 million.

Many of the new Mariano’s are former Dominick’s locations acquired in December.

“The acquired stores have received an enthusiastic reception within their respective communities,” he said. “We remain on target to open up four of the remaining five acquired stores over the next two quarters and the fully-remodeled Westchester store later on in the year.”

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James McKay    
Chicago  |  May, 08, 2014 at 04:53 PM

Sorry that the Twin Cities are losing these store but in Chicago, we love the new sibling chain Mariano's. In many U.S. cities and towns, people wish for Whole Foods or Trader Joe's. But in Chicago, EVERYONE (except the competition) wants a Mariano's in their neighborhood. Those stores are always packed and are killing the competition. I guess some Wall Streeters are down on Roundy's because of Minnesota, but with Mariano's as the future, the future is extremely bright for Roundy's. I'm simply a customer with no other relationship to Roundy's, but I have to say, not only does Mariano's compete with other grocers, they also compete (and beat) Starbucks with their Vero coffee; fast casual dining with their hot bar and salad bar; Mariano's liquor is my only stop for drinks; and I even have dates at Mariano's. It's an amazing place. Most everyone in Chicago agrees.

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