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Roundy's

Roundy's Supermarkets (Roundy's) is a Milwaukee, Wisconsin-based supermarket chain with 152 stores in Minnesota and Wisconsin. Roundy's recently announced the closing of a Copps location in Oshkosh which will reduce the store count from 153 to 152. Based on 2006 fiscal year estimated sales of $3.9 billion, Roundy's is ranked as number 33 among "Top 75 North American Food Retailers" for the 2007 and as the seventy-eighth largest retailer in the United States.

Roundy's operates under the names Pick 'n Save in Wisconsin (founded in 1975) , Rainbow Foods in the Minneapolis-St. Paul region (acquired in 2003) , Copps Food Center in Wisconsin (acquired in 2001) , and Metro Market (a pilot concept store in downtown Milwaukee, opened in 2004)

History

The company was founded in 1872 in Milwaukee, Wisconsin as Smith, Roundy & Co. by William E. Smith, Judson Roundy and Sidney Hauxhurst. Over the years it has also operated as the Roundy, Peckham & Co. and Roundy, Peckham & Dexter Co.

Roundy's was also a major warehouse distributor to non-company supermarkets, including IGA, but it has moved out of the wholesale market to focus on retail.

Roundy's had revenues of over $4.77 billion in 2004. It dropped out of the Fortune 500 list in 2006.

The Pick 'n Save chain which was the backbone and propellant for growth and sale of the company in 2002 was the prodigy of two Kroger educated supermarketing geniuses . Vincent R. Little and Michael D. McGee, the fathers of Pick 'n Save, came up through the ranks at The Kroger Company.

Roundy's saw rapid growth during the John Dickson years. Dickson became sick and handed the reins to Greald F. Lestina. On Lestina's watch the company built only one corporate store at the fairgrounds in Oshkosh, Wisconsin over a period of 7 years. That store was then sold years later to a director, George Prescott, for approximately USD 2.1 million although the board of directors had been told the price was USD 3 million.

In 2002, Roundy's was taken private thru a purchase by the Chicago private-equity firm Willis Stein & Partners. A strong effort was made in 2007 to sell Roundy's but due to the softness in the credit markets there were no takers. Rumors have swirled from time to time regarding a possible sale of Roundy's to Cincinnati-based Kroger in conjunction with some or all of Safeway-owned and Chicago-based Dominick's stores.

The current leadership team is led by CEO Robert Mariano. Mariano is the former CEO of Dominick's (prior to Dominick's sale to Safeway in 1998). Most of Mariano's senior staff at Roundy's also held the same positions with Mariano at Dominick's.

In March 2007 Roundy's announced intentions of entering the Chicago market sometime in 2008. They reiterated this intention thru conversations with Chicago media outlets in February 2008 by saying they planned to build 15-25 stores. Letters of intent were created for several locations but no plans for construction have been announced. In March 2008, Roundy's announced its intentions to build a Metro Market type store in Minneapolis as part of a new shopping area.

Competition

Milwaukee Area

New competitors for Pick 'n Save stores in the Milwaukee market in 2008 include a Woodman's Food Market in the suburb of Oak Creek, Wisconsin. Woodman's is a large hyper-style store focused on variety and price. Woodman's has also expressed interest in sites in Waukesha County, west of Milwaukee, although no deal has been confirmed.

Also, Wal-Mart has opened supercenters with full grocery selections in Germantown, as well as outlying areas including Mukwonago, Sturtevant, West Bend, and Hartford. Stores in Milwaukee's South Side and in Franklin are set to be converted to supercenters, and there are plans for new supercenters pending approval in Muskego, Cudahy and Waukesha.

Costco Wholesale recently entered the market with a store in Grafton.

Sendik's Food Market, a local, high-end food market, also competes with Pick 'n Save, and has slowly expanded further using former Kohl's and Jewel-Osco locations to expand within the suburban fringes of the area. A long time retailer on Milwaukee's north side, Lena's Food Markets, has used the same strategy to expand within Milwaukee proper.

Minneapolis-St. Paul Area

In the Minneapolis market, Roundy's owned Rainbow Foods is a distant second in the marketplace to Supervalu owned Cub Foods. Other competetors, including SuperTarget, Costco, and Wal-Mart Supercenters continue to gain ground against Rainbow.

Elsewhere

In northern Wisconsin, independents such as Festival Foods along with Wal-Mart Supercenters have seriously impacted Roundy's stores throughout the Fox Valley region.

References

External links

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