Grocery Stores

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FISHMANPET
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Grocery Stores

Postby FISHMANPET » May 7th, 2014, 10:32 am

This has been discussed in at least 3 threads, and since there are 6 total Rainbow stores that are being sold and run as Rainbows, and also 9 additional Rainbows still for sale, that's 15 Rainbows we can talk about it.

For those of you not in the know, here's the Star Tribune:
http://www.startribune.com/business/258288141.html
In a deal that reorders the Twin Cities grocery market, the majority of Rainbow Foods stores will be purchased by a consortium of local supermarket chains — led by Supervalu — as Rainbow’s corporate parent, Roundy’s Inc., exits the market.
There are 6 Rainbow stores that Roundy's has sold that will continue to operate as Roundy's. Supervalu will own 2 of them 100%, though it's not to my knowledge known which two. It looks like Jerry's Enterprises, which runs two stores in Minnesota and 1 in Florida is involved in the purchase, as well as two other companies that look to be Cub franchisees. Lunds has also bought a couple of stores that they will rebrand, though no idea if they're part owner of the 4 mysterious Rainbow stores.

Individual redevelopment ideas of each Rainbow can probably go into their own thread, but we can talk about groceries here. Or a mod can move all the Rainbow posts here. I don't know, I just post here :D

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Re: Uptown Development Map and General Discussion

Postby LakeCharles » May 7th, 2014, 12:01 pm

FISHMANPET wrote: The ones that aren't changing names are what I'm curious about. Does Supervalu or Lunds own those, or do they own them in partnership? I'm pretty sure the ones not changing are going to be on the chopping block. The two I know of, Minneapolis Lake Street and St Paul Midway, are both very close to existing Cub stores.
Presumably the other buyers listed, "Jerry’s Enterprises, Haug Enterprises and Radermacher Enterprises," will be running those stores that don't change names. So it doesn't particularly matter that they are close to Cub stores, except that possibly the markets are oversaturated.

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Re: Grocery Stores

Postby mulad » May 7th, 2014, 12:35 pm

I was surprised to see that in my neck of the woods, the Rainbow on Larpenteur in Roseville is going to become a Cub. It's not very far from the Cub at HarMar Mall, so I'm curious what will happen there. Someone also mentioned Cub's historical relationship with TCF Bank for in-store banking. HarMar had been weird for a long time since it had a TCF at the corner of Snelling and County B, as well as one in the Cub there. Of course, that TCF moved a few years ago, across County B and to the east a bit. Some Rainbow locations have other banks in them (Associated Bank?). I don't remember off the top of my head if there's anything at the Larpenteur Rainbow.

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FISHMANPET
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Re: Grocery Stores

Postby FISHMANPET » May 7th, 2014, 12:46 pm

They're actually Guaranty Banks. I suspect the only exist in Rainbow stores (at least around here), and looking at their website, they have exactly 18 branches in Minnesota, which just happens to be the exact number of Rainbow stores...

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Re: Grocery Stores

Postby Suburban Outcast » May 7th, 2014, 12:53 pm

I never get the deal with business locations in Roseville:

- The Starbucks across from another Starbucks on 36/Fairview (even if the original one was busy, it still looks ridiculous having two standalone locations literally across the freeway from one another)
- The Wal-Mart at the Twin Lakes development, only a couple miles from one in St. Anthony (Silver Lake Village - now closed apparently which seems unnecessary since it wasn't that old)
- Those random TCF Bank locations (If I recall correctly they had a TCF on Lexington/B in addition to that one directly in HarMar like Mulad said until they built that new one near the Target)
- Now 2 Cubs within a short distance (are they going to close HarMar's Cub now?)

My friend lives across the street from Rainbow, and they remodeled it back in 2009 or so (RIP cheap Roseville 4 theatre), so I wonder if Cub is going to revamp the exterior so it looks more like a typical Cub (dull and cheap).

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Re: Grocery Stores

Postby Snelbian » May 7th, 2014, 1:15 pm

I'm very interested to see how this affects the bus barn/Midway redevelopment at University and Snelling, especially since there's already a Cub very nearby (and a Target, Walmart, Aldi and Whole Foods for that matter).

uptowncarag

Re: Uptown Development Map and General Discussion

Postby uptowncarag » May 7th, 2014, 3:37 pm

The list of the stores that will close is interesting. Watch out for Hy-Vee as they enter the Twin Cities market. It is a great store and it knocks Cub out of the water.

maxbaby
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Re: Grocery Stores

Postby maxbaby » May 7th, 2014, 4:48 pm

Here is what stores are going to be what.
http://www.mprnews.org/story/2014/05/07 ... es?from=hp

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Re: Grocery Stores

Postby twincitizen » May 7th, 2014, 5:39 pm

To sum up, the Twin Cities currently has 27 Rainbow Foods locations.
2 (Eden Prairie and Woodbury) will become Byerly's, lucky for those communities.
EDIT: I wager Byerly's will eventually close their Suburban Avenue location on St. Paul's east side. They've probably wanted out of that area for years, especially after Cub and Aldi came to the neighborhood. If they could get a good offer on the land, I think they'd take it and run.

10 are becoming Cub Foods, some owned by Supervalu directly, others by the amalgamated ownership group (Cub Franchisees, Supervalu, etc)

6 will remain Rainbow Foods (god knows why though...some are too close to existing Cub locations, others are in likely redevelopment areas, some fall into both categories like Midway and Hi-Lake)

9 other locations were not sold today and remain owned by Roundy's for now. If buyers do not emerge, they will likely close. Chances are that Hy-vee swoops in and buys at least a couple of these.


Honestly, aside from the 9 locations that were not sold today, this looks like a coordinated effort among the local chains to block Hy-vee from easily grabbing a huge share in this market. Hy-vee already announced their plans to enter the Twin Cities market, with several stores on the way, predominantly in the outer ring. Perhaps coincidentally, the 9 stores that were not sold today are also located in the outer ring suburbs.

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Re: Grocery Stores

Postby twincitizen » May 7th, 2014, 7:21 pm

More details here, if you're super interested (which I am for some inexplicable reason...must I know everything about everything?!):
http://supermarketnews.com/retail-finan ... cquisition

"Ten of the acquired stores would be converted to the Cub Foods banner and two to the Byerly’s banner, with the other six remaining Rainbow Foods. Of the 18 stores, Supervalu will have 100% ownership in three Cub stores; majority ownership in two Cub stores; minority ownership in three Cub stores; 100% ownership in two Rainbow stores; and a 100% interest in 11 pharmacies."

The question then is which two Rainbows will Supervalu own 100%, and why aren't those becoming Cub??

Also noted in a separate article on that site: one of the six Rainbow locations (Plymouth) will be owned 100% by Lunds, but remain a Rainbow for the foreseeable future. As I stated before, some of this just really looks like they're blocking Hy-vee. There's a Lunds 1/4-mile away...and Lunds is going to operate a sort-of competing Rainbow. Ok...

Minneboy
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Re: Grocery Stores

Postby Minneboy » May 7th, 2014, 7:40 pm

It's too bad the Hy-vee didn't buy the Uptown one and made the block something more in tune with a proposal a few years ago. Would have been awesome.

LakeCharles
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Re: Grocery Stores

Postby LakeCharles » May 7th, 2014, 8:53 pm

twincitizen wrote:Honestly, aside from the 9 locations that were not sold today, this looks like a coordinated effort among the local chains to block Hy-vee from easily grabbing a huge share in this market. Hy-vee already announced their plans to enter the Twin Cities market, with several stores on the way, predominantly in the outer ring. Perhaps coincidentally, the 9 stores that were not sold today are also located in the outer ring suburbs.
I'm not saying you are wrong. I know nothing about grocery stores or their markets. But just based on your post here, Cub/Lunds are buying up ONLY the stores in the areas Hy-Vee is NOT interested in moving into. If they wanted to make life tough for Hy-Vee, wouldn't they buy up the Rainbows in the areas Hy-Vee is actually considering?

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Re: Grocery Stores

Postby seanrichardryan » May 7th, 2014, 9:19 pm

Collusion? I assume the sale will have to pass an FTC smell test.
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Re: Grocery Stores

Postby Mdcastle » May 7th, 2014, 9:23 pm

Article says Hy-Vee wants stores around 90,000 square feet, and the Rainbows are only 60,000.
http://www.startribune.com/business/258396101.html

fehler
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Re: Grocery Stores

Postby fehler » May 8th, 2014, 8:16 am

Anything but Coburns.

mattaudio
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Re: Grocery Stores

Postby mattaudio » May 8th, 2014, 8:41 am

Why is that? They seem similar to Hy-Vee? Maybe I'm just partial because I went to college with some of that family.

Anyways, why is it so hard to get a co-op around here?

twincitizen
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Re: Grocery Stores

Postby twincitizen » May 8th, 2014, 12:48 pm

mattaudio wrote:Anyways, why is it so hard to get a co-op around here?
Because they don't carry the products that regular people are shopping for?

(That comment is particularly aimed at The Wedge, of which I am a member and almost never patronize.)

If I had been around during the "co-op wars" in Minneapolis (1970s?), I definitely would have been on the side fighting for the co-ops to carry regular things for regular people at regular prices. I have now gone to The Wedge on two occasions and bought absolutely nothing out of frustration. Why are eggs and milk so goddamn expensive there? Where is the deli counter so I can buy some fresh-sliced turkey for making cheap lunches? They don't even have a slicer...what the hell is that about?

VAStationDude
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Re: Grocery Stores

Postby VAStationDude » May 8th, 2014, 1:08 pm

The Wedge does suck. Mississippi Market in St Paul charges less than The Wedge for the same or similar products. Plus the snobbish bs from customers and staff is kept at a minimum.

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Re: Grocery Stores

Postby Viktor Vaughn » May 8th, 2014, 1:17 pm

I'm the target demographic for co-ops. I get my eggs from a local farm year round and have a veggy CSA share 20 weeks a year. I try really hard to avoid processed foods and feed my kids organic as much as possible. I'm willing to pay more for fresh, local, and organic food.

But the Co-ops are just to expensive for me to justify most of the time. I've never bought a bag of groceries at the Wedge or Eastside and not felt gouged. Maybe this is what responsible food costs, but our family could simply not afford to do most of our grocery shopping there.

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FISHMANPET
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Re: Grocery Stores

Postby FISHMANPET » May 8th, 2014, 1:35 pm

twincitizen wrote:Because they don't carry the products that regular people are shopping for?

(That comment is particularly aimed at The Wedge, of which I am a member and almost never patronize.)

If I had been around during the "co-op wars" in Minneapolis (1970s?), I definitely would have been on the side fighting for the co-ops to carry regular things for regular people at regular prices. I have now gone to The Wedge on two occasions and bought absolutely nothing out of frustration. Why are eggs and milk so goddamn expensive there? Where is the deli counter so I can buy some fresh-sliced turkey for making cheap lunches? They don't even have a slicer...what the hell is that about?
Totally agree. See, my early thoughts on Coops: https://forum.streets.mn/viewtopic.php?f=6&t=2019


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