Roundy\u2019s 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\u2019s CEO Robert A. Mariano called the moves a plan to \u2018right-size our infrastructure.\u2019 The buyers of the initial 18 Rainbow stores joined SUPERVALU to execute the purchases, and include Jerry\u2019s Enterprises,\u00a0Haug Enterprises,\u00a0Lund Food Holdings, and\u00a0Radermacher Enterprises. Roundy\u2019s is shifting focus on \u2018optimal\u2019 operation in its home state of Wisconsin, while also focusing on expanding the Mariano\u2019s 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.<\/p>\n
According to a SUPERVALU press release, \u2018SUPERVALU\u00a0will 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\u2019s will be selling these 18 stores for approximately\u00a0$65 million\u00a0plus inventory. SUPERVALU\u2019s aggregate purchase price across its multiple purchase agreements is approximately\u00a0$35 million\u00a0in 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,\u00a0SUPERVALU\u00a0will assume certain lease obligations and certain multi-employer pension liabilities related to the stores being acquired by\u00a0SUPERVALU.\u2019 The transactions are expected to close later this summary.<\/p>\n
According to data from Chain Store Guide\u2019s<\/strong> 2014 Grocery Industry Market Share Report<\/em>, Cub Foods will be strengthening its number one market position in the Minneapolis, MN metro core-based statistical area (CBSA) market.<\/p>\n MINNEAPOLIS-ST. PAUL-BLOOMINGTON, MN-WI Metro CBSA*<\/span><\/strong><\/p>\n Counties – ANOKA, CARVER, CHISAGO, DAKOTA, HENNEPIN, ISANTI, LE SUEUR, MILLE LACS, RAMSEY, SCOTT, SHERBURNE, SIBLEY, WASHINGTON, WRIGHT – MN; PIERCE, SAINT CROIX – WI<\/p>\n