Twin Cities Grocery Retailers Buy 18 Rainbow Foods Stores

Updated: 05/08/2014 10:42 AM
Created: 05/07/2014 11:39 AM
By: Jennie Olson

Roundy's is getting out of the Twin Cities market.          

The Milwaukee-based grocery chain announced Wednesday it's selling 18 Rainbow stores in the Minneapolis/St. Paul area to a group of local grocery retailers, including Supervalu Inc., for $65 million, plus the proceeds from inventory once the deal closes.

Roundy's CEO Robert Mariano says increased competition in the market led to the decision to sell the Rainbow stores.          

Ten stores will be operated as new Cub Foods locations, two will be Byerly’s locations, and six will stay as Rainbow Foods.

Supervalu Inc. officials say between the new stores and seasonal employment, Cub Foods expects to have more than 1,000 jobs available in the coming months; the transactions are expected to be finished by the end of the summer.

The 10 new CUB stores will be located at:

  • Chaska – 200 Pioneer Trail
  • Eagan -- 1276 Town Centre Drive
  • Lakeville – 17756 Kenwood Trail
  • Minneapolis (Lagoon) – 1104 Lagoon Avenue
  • Minneapolis (Quarry) – 1540 New Brighton Road
  • Oakdale – 7053 10th Street North
  • Plymouth (6th Avenue) – 10200 6th Avenue North
  • Roseville (includes stand-alone liquor store) – 1201 Larpenteur Avenue
  • St. Louis Park (includes stand-alone liquor store) – 5370 16th Street West
  • St. Paul (Arcade) – 892 Arcade Street

The two new Byerly’s stores will be located at:

  • Eden Prairie – 970 Prairie Center Drive
  • Woodbury (includes stand-alone liquor store) – 7050 Valley Creek Plaza

The six Rainbow stores will be located at:

  • Maplewood – 2501 White Bear Avenue
  • Minneapolis (Lake Street) – 2919 26th Avenue South
  • Plymouth (Plymouth Station) – 16705 County Road 24
  • Richfield – 140 West 66th Street
  • St. Paul (Midway) – 1566 University Avenue West
  • West St. Paul – 1660 Robert Street South

The Journal Sentinel says Roundy's is also looking for buyers for its nine remaining Rainbow grocery stores and expects to sell or close those stores and completely exit the Twin Cities market. Roundy's operates 169 retail grocery stores and 114 pharmacies, under the Pick 'n Save, Rainbow, Copps, Metro Market and Mariano's banners in Wisconsin, Minnesota and Illinois.

The Associated Press contributed to this report.

Photo: KSTP/File

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