Roundy's

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Roundy's Supermarkets
Subsidiary
IndustryRetail (Grocery)
Founded1872 (147 years ago) (1872)
Headquarters
Number of locations
156[needs update]
ProductsBakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks
RevenueUSD 3.8 billion (2011)[needs update]
OwnerKroger
Number of employees
20,000[needs update]
Websitewww.roundys.com

Roundy's is a subsidiary of Kroger, which operates 166 supermarkets and 99 pharmacies throughout the states of Wisconsin and Illinois.[1] Based on fiscal year 2012 sales, Roundy's was the 37th largest grocery store chain[2] and the 89th largest retailer in the United States.[3] As of December 2015, Roundy's became a subsidiary of Kroger of Cincinnati, Ohio.[4]

The stores of Roundy's mainly use that branding as a private label, with three front-facing brands and one former brand;

  • Pick 'n Save, which launched as a warehouse food store concept in 1975, but over time with the decline of former competitor Kohl's Food Stores under its A&P ownership and major changes to Piggly Wiggly, now operates as a traditional supermarket chain.
  • Metro Market, a smaller-store concept prevalent in the Milwaukee and Madison markets, mainly competing with Sendik's, Trader Joe's and Whole Foods Market.
  • Mariano's Fresh Market, the same concept as Metro Market in the Chicago market; named for former Roundy's CEO "Chairman" Bob Mariano. Metro Market and Mariano's both launched in 2010.
  • Copps Food Centers was a regional supermarket chain founded in Stevens Point, Wisconsin in 1892 mainly prevalent in north central and northeast Wisconsin. Copps was acquired by Roundy's in 2001. Several attempts were made to convert those stores to the Pick 'n Save name under Roundy's ownership, which were generally unsuccessful and scattered due to customer sentiment against the rebranding. Kroger finally completed the rebranding of Copps locations to Pick 'n Save in 2017.[5]

Roundy's operates food production facilities in Kenosha and other locations, and has two main distribution centers, in Mazomanie and Oconomowoc, Wisconsin.

The company began trading on the New York Stock Exchange on February 8, 2012,[1] and ceased trading on December 18, 2015, when it became a subsidiary of The Kroger Company.[4]

History[edit]

The company was founded in 1872 in Milwaukee 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.[citation needed]

Roundy's was a major warehouse distributor to non-company supermarkets, including IGA, but it moved out of the wholesale market to focus on retail.[6]

Roundy's saw rapid growth during the John Dickson[who?] years.[when?][citation needed] The reins were handed to Gerald F. Lestina, when Dickson became sick.[when?][citation needed] On Lestina's watch, a period of 7 years, the company built only one corporate store, at the fairgrounds in Oshkosh, Wisconsin; that store was later sold to a director, George E. Prescott, for approximately $1.1 million.[when?][citation needed]

Roundy's was taken private in 2002 through purchase by the Chicago private-equity firm Willis Stein & Partners.[7] A strong effort was made in 2007 to sell Roundy's, but because of softness in the credit markets, there were no takers.[citation needed]

Roundy's took the company public via IPO in 2012, posting an initial share price of $8.50 per share.[8]

Beginning in 2002, the CEO of the corporation was Robert "Chairman Bob" Mariano, who had been the CEO of Dominick's prior to Dominick's sale to Safeway in 1998.[citation needed] Most of Mariano's senior staff at Roundy's held the same positions with Mariano at Dominick's.[citation needed]

Mariano initiated the creation of a Chicago-based supermarket division, called Mariano's, focused on creating upscale multi-department food stores. The first Mariano's branded store opened in Arlington Heights, Illinois in July, 2010.

On December 2, 2013, Roundy's and Mariano announced it would purchase 11 Dominick's stores to rebrand them as Mariano's, after Safeway finished closing the chain early in 2014.[9]

On November 11, 2015, Roundy's announced its sale to the Kroger Company, a deal valued at $800 million including debt, which was completed on December 18, 2015.[4] Following completion of the sale, Roundy's retained its headquarters in Milwaukee.[10] It was suggested that Kroger primarily was interested in the Mariano's division, as Kroger had not been active in the Chicago market, and normally the company isn't interested in acquiring chains in financial difficulty—the Roundy's divisions in Wisconsin had been in decline.

The sale of Roundy's to Cincinnati-based Kroger, about two years after Safeway shut down its Chicago-based Dominick's supermarket chain, selling many of the stores to other operators, was a matter discussed in the regional business press.[11]

CEO Bob Mariano retired on September 1, 2016.[12]

Pick 'n Save[edit]

The Pick 'n Save chain, which was the backbone and propellant for growth and sale of the company in 2002, was the progeny of two Kroger-educated marketers, Vincent R. Little and Michael D. McGee, the "fathers of Pick 'n Save,"[This quote needs a citation] who came up through the ranks at the Kroger Company.[citation needed]

After the Kroger purchase, "...expanded produce and floral departments and a bigger salad bar. Roundy’s also added hot and cold options for its Top Slice Pizza, a new self-serve hot food bar."[13]

References[edit]

  1. ^ a b "Roundy's, Inc. - Investor FAQs". corporate-ir.net. Retrieved February 10, 2017.
  2. ^ "Top 75 Retailers & Wholesalers". supermarketnews.com. Retrieved February 10, 2017.
  3. ^ Schulz, David P. (June 26, 2012). "Top 100 Retailers 2012". NRF.com. Washington, DC: National Retail Federation (NRF). Retrieved February 10, 2017. See also the attached listing to that article.
  4. ^ a b c Taschler, Joe (December 18, 2015). "Kroger Completes Acquisition of Roundy's". Milwaukee Journal Sentinel. Retrieved April 25, 2006.CS1 maint: Uses authors parameter (link)
  5. ^ "The Buzz: Copps says goodbye". Post-Crescent Media. Retrieved November 26, 2017.
  6. ^ Hajewski, Doris (March 25, 2007). "Industry Experts Say Roundy's Likely Will End Up With Another Private-Equity Firm". Milwaukee Journal Sentinel. Archived from the original on December 19, 2010. Retrieved December 19, 2017.
  7. ^ Gallun, Alby (April 10, 2002). "Willis Stein picks up Roundy's". Crain's Chicago Business. Retrieved December 19, 2017.
  8. ^ Cowan, Lynn. "Roundy's trading up 3.5% after cutting IPO price". Market Watch. Retrieved December 19, 2017.
  9. ^ Maidenberg, Micah; Sweeney, Brigid & Murphy, H. Lee (December 2, 2013). "Mariano's Buys 11 Dominick's, Whole Foods Said to be Buying 7". Crain's Chicago Business. Retrieved December 19, 2017.CS1 maint: Uses authors parameter (link)
  10. ^ Taschler, Joe; Romell, Rick (November 11, 2015). "Kroger to buy Pick 'n Save Parent Roundy's in $800 Million Deal". Milwaukee Journal Sentinel. Retrieved December 19, 2017.
  11. ^ Hajewski, Doris (March 25, 2007). "Industry Experts Say Roundy's Likely Will End Up With Another Private-Equity Firm". Milwaukee Journal Sentinel. Archived from the original on December 19, 2010. Retrieved December 19, 2017.
  12. ^ Trotter, Greg (July 12, 2016). "Bob Mariano To Retire as Roundy's CEO But Will Help as Adviser". Chicago Tribune. Retrieved July 13, 2016.
  13. ^ Lesk, Sari (15 August 2018). "Pick 'n Save completes Midtown store remodeling that touts lower prices: Slideshow". Milwaukee Business Journal. Retrieved 4 April 2019.

Further reading[edit]

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