Roundy's
Encyclopedia
Roundy's Supermarkets (Roundy's) is a Milwaukee
, Wisconsin
-based supermarket
chain with 154 stores in Minnesota
and Wisconsin
, and 4 stores in Illinois. Based on 2006 fiscal year estimated sales of $3.9 billion, Roundy's was ranked as number 33 among "Top 75 North American Food Retailers" for 2007 and as the seventy-eighth largest retailer in the United States
.
Roundy's operates under the names Pick 'n Save in Wisconsin (founded in 1975)http://www.picknsave.com, Rainbow Foods in the Minneapolis-St. Paul region (acquired in 2003)http://www.rainbowfoods.com, Copps Food Center in Wisconsin (acquired in 2001)http://www.copps.com, Metro Market (a pilot concept store in downtown Milwaukee, opened in 2004)http://www.roundys.com/modules/content/index.php?id=77, Ultra Mart Foods, and Mariano's Fresh Market in Illinois.http://www.marianosfreshmarket.com/
Roundy's operates three main distribution centers located in Stevens Point, WI, Mazomanie, WI, and Oconomowoc, WI. Roundy's continues to operate Copps Food Center out of its Stevens Point headquarters.
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 has moved out of the wholesale market to focus on retail.
In 2004 Roundy's had revenues of over $4.77 billion. It dropped out of the Fortune 500
list in 2006.
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 . 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.
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 from time to time 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.
The current lCEO 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.
In March 2011, it is again rumored that Roundy's is up for sale.
Almost all stores carrying the Pick 'n Save banner are located south and east of a line from Madison to Green Bay, Wisconsin. All Copps stores are located in Wisconsin north and west of the line described. All Rainbow Foods stores are located in Minnesota and within the Twin Cities metro area. Mariano's Fresh Market is in the Chicago area.
in the suburb of Oak Creek, Wisconsin
. Woodman's is a large store focused on variety and price. The company opened another store in Menomonee Falls
in late 2010, and has had a store in Kenosha for many years.
Also, Wal-Mart
has opened supercenters with full grocery selections in the communities of Germantown
, Mukwonago
, Sturtevant
, West Bend
, Hartford
, Franklin
and Milwaukee
. New supercenters will soon be constructed in Muskego
and Waukesha
. The chain also hopes to convert its Delafield
discount store into a supercenter.
Costco
Wholesale recently entered the market with a store in Grafton
.
Sendik's Food Market, a local, high-end food market, also competes with Pick 'n Save, and has slowly expanded further using former Kohl's and Jewel-Osco locations to expand within the suburban fringes of the area. A long time retailer on Milwaukee's north side, Lena's Food Markets(Piggly Wiggly), has used the same strategy to expand within Milwaukee proper.
market, Roundy's owned Rainbow Foods is a distant second in the marketplace to Supervalu
owned Cub Foods
. Other competitors, including SuperTarget, Costco
, and Wal-Mart
Supercenters continue to gain ground against Rainbow.
along with Wal-Mart Supercenters have seriously impacted Roundy's stores throughout the Fox River Valley
region.
Roundy's operate 27 Copps Food Centers in Wisconsin, outside the Milwaukee area, according to the company website.
Milwaukee, Wisconsin
Milwaukee is the largest city in the U.S. state of Wisconsin, the 28th most populous city in the United States and 39th most populous region in the United States. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2010 census data, the...
, Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
-based supermarket
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
chain with 154 stores in Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
and Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
, and 4 stores in Illinois. Based on 2006 fiscal year estimated sales of $3.9 billion, Roundy's was ranked as number 33 among "Top 75 North American Food Retailers" for 2007 and as the seventy-eighth largest retailer in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
Roundy's operates under the names Pick 'n Save in Wisconsin (founded in 1975)http://www.picknsave.com, Rainbow Foods in the Minneapolis-St. Paul region (acquired in 2003)http://www.rainbowfoods.com, Copps Food Center in Wisconsin (acquired in 2001)http://www.copps.com, Metro Market (a pilot concept store in downtown Milwaukee, opened in 2004)http://www.roundys.com/modules/content/index.php?id=77, Ultra Mart Foods, and Mariano's Fresh Market in Illinois.http://www.marianosfreshmarket.com/
Roundy's operates three main distribution centers located in Stevens Point, WI, Mazomanie, WI, and Oconomowoc, WI. Roundy's continues to operate Copps Food Center out of its Stevens Point headquarters.
History
The company was founded in 1872 in Milwaukee, WisconsinMilwaukee, Wisconsin
Milwaukee is the largest city in the U.S. state of Wisconsin, the 28th most populous city in the United States and 39th most populous region in the United States. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2010 census data, the...
as Smith, Roundy & Co. by William E. Smith
William E. Smith
William E. Smith was the 14th Governor of Wisconsin.Born in Kincardineshire, Scotland, and moved to the United States with his family as a child. He had lived in New York City and Michigan before settling in Fox Lake, Wisconsin in 1849...
, 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
IGA (supermarkets)
IGA is a brand of grocery stores active in more than 30 countries. Contrasting with the chain store business model, IGA operates as a franchise through stores that are owned separately from the brand. Many of these stores operate in small town markets and belong to families that manage them...
, but it has moved out of the wholesale market to focus on retail.
In 2004 Roundy's had revenues of over $4.77 billion. It dropped out of the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
list in 2006.
The Pick 'n Save chain, which was the backbone and propellant for growth and sale of the company in 2002, was the prodigy of two Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
educated marketers . 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
Oshkosh, Wisconsin
As of the census of 2000, there were 62,916 people, 24,082 households, and 13,654 families residing in the city. The population density was 2,662.2 people per square mile . There were 25,420 housing units at an average density of 1,075.6 per square mile...
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.
In 2002, Roundy's was taken private through a purchase by the Chicago private-equity firm Willis Stein & Partners
Willis Stein & Partners
Willis Stein & Partners is a private equity firm focused on leveraged buyout transactions for middle-market companies.The firm's most notable investments have included Ziff Davis, Roundy's, Jays Foods, Lincoln Snacks Company and Petersen Publishing Company .The firm is headquartered in Chicago and...
. 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 from time to time regarding a possible sale of Roundy's to Cincinnati-based Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
in conjunction with some or all of Safeway-owned and Chicago-based Dominick's
Dominick's
Dominick's Finer Foods, Inc. is a grocery store chain and subsidiary of Safeway Inc. with locations mainly in the Chicago area, Illinois, USA. Dominick's distribution center is located in Northlake, while its management offices are located in Oak Brook....
stores.
The current lCEO 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.
In March 2011, it is again rumored that Roundy's is up for sale.
Retail Banners
Roundy's operates stores using 5 distinct banners. They are Pick 'n Save, Copps, Rainbow Foods, Metro Market, and Mariano's Fresh Market. Within the store, three of those banners are practically identical in merchandising style and strategy, while Metro Market and Mariano's offer more urban-upscale product offering with modern fixturing and amenities.Almost all stores carrying the Pick 'n Save banner are located south and east of a line from Madison to Green Bay, Wisconsin. All Copps stores are located in Wisconsin north and west of the line described. All Rainbow Foods stores are located in Minnesota and within the Twin Cities metro area. Mariano's Fresh Market is in the Chicago area.
Corporate Office Layoffs
On January 19, 2010, a round of layoffs occurred at the corporate headquarters in Milwaukee. 62 full-time employees were released due to "economic conditions" as stated by Roundy's public relations official Vivian King. The layoffs affected all departments housed at the downtown Milwaukee office and were effective immediately. No other information was forthcoming concerning any store impacts or future potential layoffs.Milwaukee Area
New competitors for Pick 'n Save stores in the Milwaukee market in 2008 include a Woodman's Food MarketWoodman's Food Market
Woodman's Food Market is an employee-owned supermarket chain in Wisconsin and northern Illinois, operating thirteen warehouse stores. Supermarket News ranked Woodman's No. 75 in the 2009 list "Top 75 North American Food Retailers" based on revenue generated in the 2008 fiscal year...
in the suburb of Oak Creek, Wisconsin
Oak Creek, Wisconsin
Oak Creek is a city in Milwaukee County, Wisconsin, United States. The population was 28,456 at the 2000 census. In 2009, its population was estimated at 33,946.-History:...
. Woodman's is a large store focused on variety and price. The company opened another store in Menomonee Falls
Menomonee Falls, Wisconsin
Menomonee Falls is a village in Waukesha County, Wisconsin, United States, and is part of the Greater Milwaukee area. The population was 35,626 at the 2010 census, making it the most populous village in Wisconsin. It is the fourth largest community in Waukesha County...
in late 2010, and has had a store in Kenosha for many years.
Also, Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
has opened supercenters with full grocery selections in the communities of Germantown
Germantown, Wisconsin
Germantown is a village in Washington County, Wisconsin, United States. The population was 18,260 at the 2000 census. The village surrounds the Town of Germantown...
, Mukwonago
Mukwonago, Wisconsin
-Geography:Mukwonago is located at .According to the United States Census Bureau, the village has a total area of 4.8 square miles , of which, 4.7 square miles of it is land and 0.1 square miles of it is water.It is situated at the southwestern flank of the sprawling Vernon...
, Sturtevant
Sturtevant, Wisconsin
Sturtevant is a village in Racine County, Wisconsin, United States. The population was 6599 at the 2009 census.Sturtevant celebrated its 100th anniversary in 2007.-Geography:Sturtevant is located at ....
, West Bend
West Bend, Wisconsin
West Bend is a city in and the county seat of Washington County, Wisconsin, United States in southeastern Wisconsin. The population was estimated to be 29,894 in 2008...
, Hartford
Hartford, Wisconsin
Hartford is a city in Dodge and Washington Counties in the U.S. state of Wisconsin. As of the 2000 census, the city had a population of 10,978. The city is growing at estimated rate of 10.66% annually, resulting in an estimated population of 13,900 by January 2009.-Tornado of 2006:The city was the...
, Franklin
Franklin, Wisconsin
Franklin, Wisconsin can refer to several places:*Franklin, Jackson County, Wisconsin, a town*Franklin , Jackson County, Wisconsin, an unincorporated community*Franklin, Kewaunee County, Wisconsin, a town...
and Milwaukee
Milwaukee, Wisconsin
Milwaukee is the largest city in the U.S. state of Wisconsin, the 28th most populous city in the United States and 39th most populous region in the United States. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2010 census data, the...
. New supercenters will soon be constructed in Muskego
Muskego, Wisconsin
Muskego is a city in Waukesha County, Wisconsin, United States. As of the 2000 census, the city had a population of 21,397. Its 2006-2008 estimated population was 22,851. Muskego is the fifth largest community in Waukesha County. The name Muskego is derived from the Potawatomi Indian name for the...
and Waukesha
Waukesha, Wisconsin
Waukesha is a city in and the county seat of Waukesha County, Wisconsin, in the Upper Midwest region of the United States. The population was 70,718 at the 2010 census, making it the largest community in the county and 7th largest in the state. The city is located adjacent to the Town of Waukesha...
. The chain also hopes to convert its Delafield
Delafield, Wisconsin
Delafield is a city in Waukesha County, Wisconsin, along the Bark River, and a suburb of Milwaukee. The population was 6,472 at the 2000 census....
discount store into a supercenter.
Costco
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
Wholesale recently entered the market with a store in Grafton
Grafton, Wisconsin
Grafton is a village in Ozaukee County, Wisconsin, United States. The population was 10,312 at the 2000 census. The village is adjacent to the Town of Grafton and the City of Cedarburg.-History:...
.
Sendik's Food Market, a local, high-end food market, also competes with Pick 'n Save, and has slowly expanded further using former Kohl's and Jewel-Osco locations to expand within the suburban fringes of the area. A long time retailer on Milwaukee's north side, Lena's Food Markets(Piggly Wiggly), has used the same strategy to expand within Milwaukee proper.
Minneapolis-St. Paul Area
In the Twin CitiesTwin cities
Twin cities are a special case of two cities or urban centres which are founded in close geographic proximity and then grow into each other over time...
market, Roundy's owned Rainbow Foods is a distant second in the marketplace to Supervalu
Supervalu (United States)
SuperValu Inc. is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States , and ranks #51 on the Fortune 100 list.On June 2, 2006,...
owned Cub Foods
Cub Foods
Cub Foods is a supermarket chain with seventy-three stores in Minnesota, Wisconsin and Illinois. The company is a wholly owned subsidiary of Eden Prairie, Minnesota-based SuperValu...
. Other competitors, including SuperTarget, Costco
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
, and Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
Supercenters continue to gain ground against Rainbow.
Elsewhere
In northern Wisconsin, independents such as Festival FoodsFestival Foods
Festival Foods is a franchise owned by Supervalu. Stores in Wisconsin and Minnesota. Stores in Wisconsin are owned by the Skogen family. Stores in Minnesota are owned by Knowlan's Super Markets, Inc...
along with Wal-Mart Supercenters have seriously impacted Roundy's stores throughout the Fox River Valley
Fox River (Wisconsin)
The Fox River is a river in eastern and central Wisconsin in the United States. Along the banks is a chain of cities, including Oshkosh, Neenah, Menasha, Appleton, Little Chute, Kimberly, Combined Locks, and Kaukauna. Except for Oshkosh, these cities refer to themselves as the Fox Cities...
region.
Roundy's operate 27 Copps Food Centers in Wisconsin, outside the Milwaukee area, according to the company website.