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Oakdale Cub opens; Roundy’s officially departs Twin Cities
SuperValu adds more stores, expands distribution
The last of 10 Rainbow Foods stores in the Twin Cities purchased by SuperValu in May reopened as Cub Foods stores last week, including the Oakdale location at 7053 Tenth Street North.
Those stores closed for a few days to change out signeage, restock shelves and to make minor modifications to store aisles. The Oakdale location also received some modifications to the store’s façade to give it a fresh look, SuperValu spokesperson Luke Friedrich said.
“We’re very excited about the future of the new Oakdale store and the opportunity to serve more customers in the community and surrounding area,” he added.
Cub Foods’ parent company reportedly purchased the 10 stores for $35 million in cash plus the cost of inventory. Lunds and three other local supermarket chains bought another eight stores. One store in Woodbury and another in Eden Prarie have reopened as Byerly’s and six others remain Rainbow stores, but are under new ownership -- including the Maplewood store at 2501 White Bear Ave. The total cost of the sale of the 18 stores was $65 million plus the monetary value of inventory.
In a May press release, Roundy’s CEO Robert Mariano said the sale of the Rainbow stores to local operators would allow those stores to provide better service in their respective communities
The remaining nine metro stores owned by Roundy’s closed Tuesday, July 22 after liquidating the remaining merchandise -- marking the company’s official exit from the Twin Cities market.
As of press time the future of those stores was still unknown. The nine stores located in Apple Valley, Coon Rapids, Bloomington, Blaine, Inver Grove Heights, Cottage Grove, Maple Grove, Shoreview and Savage will sit dark and vacant for now.
Mariano cited the economic downturn over the last few years and increased competition from other big box retailers as major factors for the company’s departure from the Twin Cities market.
He added that the sale of the stores in Minnesota would allow the Milwaukee-based retailer to strengthen its core Wisconsin markets, as well as the ability to expand its business into the greater Chicago area.
While Roundy’s cited poor sales as a major reason for pulling out of the competitive Twin Cities grocery market, SuperValu’s earnings appear to be on an upswing. The company announced its first quarter fiscal 2015 earnings report on Thursday, July 25.
After adjustments for after-tax charges, and costs for employee severance and debt financing activities, first quarter net earnings for the first fiscal quarter of 2015 were $50 million. Last year’s first quarter net earnings -- after adjustments for net loss from continuing operations, after-tax charges, financing costs, employee severance costs and asset impairment charges -- were $37 million. Its net sales, however, dropped 0.1 percent to $5.23 billion and distribution to other sales fell 2.6 percent.
“Fiscal 2015 is off to a solid start across our business segments,” CEO Sam Duncan said in a written statement. “Our first quarter results reflect the investments we are making this year to position the company for future success and I am pleased with our operating performance.”
The company is hopeful that its recent acquisitions will pull sales figures up. SuperValu has 10 new Cub stores under its wing. Additionally, the company’s Hopkins distribution center will stock the shelves of all 18 of the former Rainbow stores sold in May.
“Adding 18 stores to SuperValu’s distribution business is a great first step for the company that will have a positive impact on our business,” Friedrich said.
Joshua Nielsen can be reached at email@example.com or 651-748-7822.