Updated: 05/08/2014 10:42 AM
Created: 05/07/2014 11:39 AM KSTP.com
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:
The two new Byerly’s stores will be located at:
The six Rainbow stores will be located at:
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.