Roundy's
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| Company type | Subsidiary |
|---|---|
| Industry | Retail (Grocery) |
| Founded | 1872 |
Number of locations | 156 |
Key people | Robert A. Mariano, President & CEO Michael P. Turzenski, EVP & CFO |
| Products | Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks |
| Revenue | USD 3.8 billion (2011) |
| Owner | The Kroger Company |
Number of employees | 20,000 |
| Website | roundys.com |
Roundy's Supermarkets (Roundy's) is a supermarket chain with 166 stores and 99 pharmacies in 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] Roundy's is a subsidary of Kroger.
Roundy's operates under the names 'Pick 'n Save' throughout Wisconsin (1975), 'Copps Food Center' in northern Wisconsin and the Madison area (2001), 'Metro Market' in the Milwaukee and Madison area, and 'Mariano's Fresh Market' in the Chicago metropolitan area (2010).
Roundy's operates two main distribution centers located 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.[4]
History
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.[citation needed]
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 marketers [citation needed]. 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 Gerald 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 $1.1 million, although the board of directors had been told the price was $5 million. [citation needed]
In 2002, Roundy's was taken private through a purchase by the Chicago private-equity firm Willis Stein & Partners. A strong effort was made in 2007 to sell Roundy's, but because of the softness in the credit markets there were no takers. Rumors have swirled 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.[5]
The current CEO is "Chairman Bob" Robert Mariano, who was the CEO of Dominick's prior to Dominick's sale to Safeway in 1998. Most of Mariano's senior staff at Roundy's held the same positions with Mariano at Dominick's.[6] On December 2, 2013, Roundy's and Mariano announced it will purchase 11 Dominick's stores to rebrand them as Mariano's when Safeway finishes closing the chain at the start of 2014.[7]
In 2012 Roundy's took the company public with an IPO. The company entered the stock exchange at $8.50 per share.
On November 11, 2015, Roundy's announced a definitive merger with The Kroger Company, valued at $800 million, including debt. The merger completed on December 18, 2015.[4] Following the completion of the merger, Roundy's operates as a subsidiary of Kroger.[8]
Retail banners
Roundy's operates stores using four distinct banners: Pick 'n Save, Copps, Metro Market, and Mariano's Fresh Market. Pick 'n Save and Copps are practically identical in merchandising style and strategy with Copps confined to northeastern and north-central Wisconsin markets, while Metro Market and Mariano's offer more urban-upscale product offerings with modern fixtures and amenities.
Competition
Competitors to Roundy's include Walmart, Meijer, Costco Wholesale, Piggly Wiggly, Woodman's, and Sendik's Food Market in the Milwaukee area; Walmart and Festival Foods in the Green Bay/Fox Cities market (though Festival is also making slow in-roads into the outskirts of the Milwaukee market, along with Woodman's), and in Chicago, Brookhaven, Tony's, Berkots, Heinen's, Walmart, Jewel, Standard Market, and Fresh Thymes. With Kroger owning Food 4 Less in Chicago, Roundy's Pick 'n Save and Mariano's Market are combined into the expanded mix under Kroger's acquisition of Roundy's.
References
- ^ a b Roundy's Investor FAQs. Accessed February 14, 2013.
- ^ Top 75 Retailers & Wholesalers 2013, Supermarket News, January 21, 2013. Accessed February 14, 2012.
- ^ "Top 100 Retailers: The Nation's Retail Power Players 2012". Stores magazine. July 2012. Retrieved February 14, 2012.
{{cite web}}: Italic or bold markup not allowed in:|publisher=(help) - ^ a b Taschler, Joe (December 18, 2015). "Kroger completes acquisition of Roundy's". Milwaukee Journal Sentinel. Retrieved December 18, 2015.
- ^ Doris Hajewski (March 25, 2007). "Industry experts say Roundy's likely will end up with another private-equity firm". Journal Sentinel. Retrieved April 25, 2006.
- ^ "Executive Profile: Bob Mariano, CEO of Milwaukee-based Roundy's". tribunedigital-chicagotribune.
- ^ "Subscription Center".
- ^ Joe Taschler. "Kroger to buy Pick 'n Save parent Roundy's in $800 million deal".