HomeMy WebLinkAbout2014 07-09 Five Rainbow Foods stores get new names, and seven more soon will STAR TRIBUNE A-StarTribune
Five Rainbow Foods stores get
new names, and seven more
soon will
Article by:Steve Alexander r
i b
Star Tribune 1
July9,2014-8:19PM JUL 1 0 2014 �� �o .0 Gs '^�RCY a... g
Five former Rainbow Foods grocery stores assumed new identities
Wednesday,two months after a consortium headed by Supervalu
Inc.acquired 18 Rainbow Foods stores in the Twin Cities for$65
million. The conversion of 18 Rainbow Foods stores in the Twin Cities
has begun and most are getting the Cub banner.All will be
supplied by Supervalu.2013 rile photo of trailers lined up at
the Supervalu distribution center in Hopkins.
Three Rainbow stores—the Lagoon Avenue location in south
Minneapolis,the West End location in St.Louis Park and the David Jo!es MCT
Arcade Street location in St.Paul—became Cub Foods stores operated by Supervalu.Two Rainbow stores,in Eden Prairie
and Woodbury,became Byerly's stores operated by Lund Food Holdings Inc.
Jerry's Enterprises,Haug Enterprises and Radermacher Enterprises also joined the consortium that bought the 18 Rainbow
stores from Milwaukee-based Roundy's Inc.
The Rainbow deal occurred at a time when Target,Wal-Mart and other retailers have been successfully competing with
grocery stores.Under an agreement among the consortium members,Supervalu will supply all of the acquired stores.
In addition to the stores that have already switched names,Supervalu over the next two weeks will convert seven more
Rainbow stores to Cub.They include the New Brighton Boulevard store in northeast Minneapolis,the 6th Avenue N.store in
Plymouth and stores in Roseville,Chaska,Eagan,Oakdale and Lakeville.
Another six of the acquired grocery stores will continue to be operated by consortium members under the Rainbow name.
They are in Minneapolis on 26th Avenue S.,Plymouth on County Road 24,St.Paul on W.University Avenue,Richfield,West
St.Paul and Maplewood.
"Each of these independent retailers,along with Cub,are longtime grocers who know this market and their customers,and
are actively involved in their stores and communities,"Supervalu CEO Sam Duncan said.
Supervalu also announced Wednesday that it is moving its 1,000-employee headquarters from 7075 Flying Cloud Drive in
Eden Prairie to its previous headquarters at 11840 Valley View Road,also in Eden Prairie.
After a layoff of 600 employees in early 2013,the building on Flying Cloud Drive is now larger than needed,the company
said.The move will begin this fall and continue until the Flying Cloud building's lease expires next April.
The headquarters layoff last year was part of a major downsizing of Supervalu when it sold its five largest grocery store
chains in early 2013.Supervalu's employment dropped from 120,000 before the sale to 35,000 today.In addition to the 600
layoffs at the corporate headquarters building last year,another 500 corporate positions were cut in other states.
Steve Alexander•612-673-4553