Former Rainbow Grocery Stores Begin Brand Conversion
Roundy’s announced Wednesday that its $65 million deal to sell 18 Rainbow stores to a group of local grocery retailers, including Supervalu, Inc., has closed, and a portion of the stores have begun their brand transition.
Eden Prairie-based Supervalu partnered with Minnesota-based companies Jerry’s Enterprises, Haug Enterprises, Radermacher Enterprises, and Lund Food Holdings to execute the May 7 deal.
The deal calls for a total of 10 stores to become Cub branded locations, two to become Byerly’s stores (owned by Lund Food Holdings), and six to remain Rainbow stores. Roundy’s sold the stores as it looks to exit the Twin Cities.
Supervalu—which owns Cub Foods—said the Rainbow stores at Lagoon Avenue in Minneapolis, Arcade Street in St. Paul, and its St. Louis Park location began to convert to Cub Foods branded stores on Monday and opened their doors Wednesday.
The remaining Rainbow stores are expected to transition to their new brands on a staggered basis over the next two weeks. Supervalu will supply all 18 of the newly acquired stores out of its Hopkins distribution center.
Supervalu said it would maintain 100 percent ownership of three of the Cub stores, majority ownership of two Cub stores, minority ownership of three Cub stores, and 100 percent ownership of two Rainbow stores. Supervalu paid $35 million of the total purchase price, in cash, plus the cost of inventory that will be purchased at the closing of the deal.
The 10 new Cub Foods will be located at:
- Chaska—200 Pioneer Trail
- Lakeville—17756 Kenwood Trail
- Minneapolis (Lagoon)—1104 Lagoon Avenue
- Minneapolis (Quarry)—1540 New Brighton Boulevard
- 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
- Eagan—1276 Town Centre Drive
- Oakdale—7053 10th Street North
The six Rainbow stores will be located at:
- Minneapolis (Lake Street)—2919 26th Avenue South
- Plymouth (Plymouth Station)—16705 County Road 24
- Richfield—140 West 66th Street
- West St. Paul—1660 Robert Street South
- Maplewood—2501 White Bear Avenue
- St. Paul (Midway)—1566 University Avenue West
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