Roundy's

Roundy's Supermarkets
Subsidiary
Industry Retail (Grocery)
Founded 1872 (1872)
Headquarters Milwaukee, Wisconsin
Number of locations
 156
Products Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks
Revenue USD 3.8 billion (2011)
Owner Kroger
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] As of December 2015, Roundy's became a subsidiary of Kroger of Cincinnati, Ohio.[4]

Roundy's operates under the banners of Pick 'n Save (throughout Wisconsin, beginning in 1975), Metro Market (in the Milwaukee and Madison areas), and Mariano's Fresh Market (in the Chicago metropolitan area, beginning in 2010).

Roundy's operates food production facilities in Kenosha, Wisconsin 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

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.

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.[5]

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," who came up through the ranks at the Kroger Company.

Roundy's saw rapid growth during the John Dickson years. The reins were handed to Gerald F. Lestina, when Dickson became sick. 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.

Roundy's was taken private in 2002 through purchase by the Chicago private-equity firm Willis Stein & Partners.[6] A strong effort was made in 2007 to sell Roundy's, but because of softness in the credit markets, there were no takers.

Roundy's took the company public via IPO in 2012, posting an initial share price of $8.50 per share.[7]

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. Most of Mariano's senior staff at Roundy's held the same positions with Mariano at Dominick's.

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.[8]

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.[9] 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.[10]

CEO Bob Mariano retired on September 1, 2016.[11]

Production, distribution, and retail

The Roundy's Commissary, a food production facility in Kenosha, Wisconsin.

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

As of July 2017, Roundy's operates stores under four distinct banners: Pick 'n Save (throughout Wisconsin, beginning in 1975), Metro Market (in the Milwaukee and Madison areas), and Mariano's Fresh Market (in the Chicago metropolitan area, beginning in 2010). Pick 'n Save and Copps are practically identical in merchandising style and strategy, with Copps confined to northeastern and north-central Wisconsin markets. Metro Market and Mariano's offer more urban-upscale product offerings, with modern fixtures and amenities.

Copps Food Center was a former banner that was practically identical in merchandising style and strategy that operated in northern Wisconsin and the Madison areas. All Copps were renovated and rebranded as Pick 'n Save's in June 2016 in response to becoming a Kroger subsidiary.[12]

Competition

As well as differing geographically, competitors to the Roundy's chains will differ, depending on which of the banners described above are considered.

References

  1. 1 2 "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. 1 2 3 Taschler, Joe (December 18, 2015). "Kroger Completes Acquisition of Roundy's". Milwaukee Journal Sentinel. Retrieved April 25, 2006.
  5. ↑ 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.
  6. ↑ Gallun, Alby (April 10, 2002). "Willis Stein picks up Roundy's". Crain's Chicago Business. Retrieved December 19, 2017.
  7. ↑ Cowan, Lynn. "Roundy's trading up 3.5% after cutting IPO price". Market Watch. Retrieved December 19, 2017.
  8. ↑ 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.
  9. ↑ 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.
  10. ↑ 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.
  11. ↑ Trotter, Greg (July 12, 2016). "Bob Mariano To Retire as Roundy's CEO But Will Help as Adviser". Chicago Tribune. Retrieved July 13, 2016.
  12. ↑ "The Buzz: Copps says goodbye". Post-Crescent Media. Retrieved November 26, 2017.

Further reading

  • York, Emily Bryson (February 11, 2013). "Former Dominick's CEO Opening More Grocery Stores Here". Chicago Tribune. Retrieved February 10, 2017.
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