Kroger to buy Roundy's for $800 million

[Andrew T.]

Roundy's brand strikes me as ripe to be discontinued. First off, there is no store named Roundy's, is there?

The only evidence I've seen of a Roundy's-branded store is the turn-of-the-century "Roundy, Peckham & Co." mock-up on The Streets of Old Milwaukee. They were a wholesaler that transitioned to being an operator, much like SuperValu, with Pick 'n Save being their Cub Foods equivalent.

It will be interesting to see how they handle some of the categories like milk, eggs, and bread that are typically "banner brand" at Kroger banners and not Kroger brand, given the number of banners Roundy's has.

Does the Dillons division retain a separate "Gerbes" branding for dairy products in Missouri? That might shed a clue as to whether the division-wide Roundy's branding perseveres here or not.

Do they have the Kroger "real time" (full sugar) soda there? Smiths can barely give the stuff away, a shame, as it tastes pretty good actually and I like the package design with the historical Kroger photos.

Not from what I've seen. I'd buy it if I saw it for sale!

The time came for a weekly shopping run once more, so I checked out yet another Copps...this time, a location on McKee Road. This store actually opened around 1999 as a Pick 'n Save, but Roundy's subsequently rebranded it as Copps to consolidate its Madison advertising under one name. Now with Kroger consolidating store banners, it's on the verge of being rebranded as Pick 'n Save once more.

This looks to be a store that Kroger cares about and intends to keep, since it's undergoing the same changes as the first store I ventured inside:

Lights and aisle signs were mounted low...though that was probably done prior to Kroger's involvement. Signs were posted within acknowledging that remodeling was in progress. A section of items (mostly drugs and general merchandise) were marked down for quick sale. A portion of wall space near the produce department was shrouded over...in preparation of something new being added within.

All shopping carts had been replaced with new carts bearing the (new) logo of Pick 'n Save, not Copps. And covered canopies had been added to the cart corrals, sheltering them from the elements. Both changes have also been made to the Junction Road store.

[Andrew T.]

More and more Kroger brands are infiltrating Roundy's shelves. Simple Truth and Big K continue to be in plentiful supply, but today I also noticed some Private Selection items and a lot of P$$t as well...especially on the spice rack. Too bad they couldn't have dyed the labels yellow and called it "Cost Cutter" instead. But that's just me...

The vast majority of private-label product still bears the Roundy's name, but I managed to see the very first bona fide Kroger product for sale: Peanut butter, of all things, All hail the return of the Kroger brand to the Badger State after a 45-year lapse!

[rwsandiego]

If they are handling it how they did in the past, the Kroger brand items will filter in on "slow moving" categories first. Items like drug, glass jars of red vinegar, glass jars of cherries, etc.

Roundy's brand strikes me as ripe to be discontinued. First off, there is no store named Roundy's, is there? So it isn't a banner brand. It is just a generic brand.

"Roundy's" was the house brand for all of the stores previously owned by Roundy's.

...I could see them stepping a little more lightly about discontinuing a "Mariano's" brand if such a brand existed...

Mariano's house brand was Roundy's.

...but this "Roundy's" brand, clearly, is just a generic off brand. Replacing it with Kroger won't upset many people if any people....

Back in the day, Certified Grocers of Illinois sold Raggedy Ann and Country's Delight branded items. Roundy's makes that look upscale. Remember the beloved Essential Everyday? Made that look upscale, too.

...It will be interesting to see how they handle some of the categories like milk, eggs, and bread that are typically "banner brand" at Kroger banners and not Kroger brand, given the number of banners Roundy's has. ...

Actually, Ralph's sells Kroger brand milk, eggs, and bread, so there is a precedent for Kroger brand.

[terryinokc]

I was in Gerbes a year or so ago....they had Dillons brand milk, eggs and bread.

[terryinokc]

I think it's funny in other parts of the country people add an "S" to the name of a store....as noted in the above peanut butter photo....."Kroger's"

I have friends in Ohio and further north...and they always say "Aldi's" or "Kroger's" or "Jewel's" or "Wal Mart's"...

Is this a regional thing? No one here ever says that. I live in Oklahoma.
It's Wal Mart or Aldi.

If you lived in the south would you say "Publix's" or "Winn Dixie's?

Always wondered why the "s" was added................

[pseudo3d]

While it definitely gives Kroger a nice hold on Wisconsin, I can't see what their strategy for Illinois is. The way that Mariano's is built to be an entry into Chicago into very nice stores, albeit a fairly low market share. So is Kroger just going to let their stores in Chicago to be relatively few but nice and upscale, or try to downscale the prototype to build a more common Jewel-Osco competitor?

[Andrew T.]

I was in Gerbes a year or so ago....they had Dillons brand milk, eggs and bread.

We won't be seeing individually-branded "Pick 'n Save," "Metro Market," or "Mariano's" milk, eggs, and bread, then. My guess is that the Roundy's brand is going to stay on perishables as long as the division is called "Roundy's;" even if it disappears everywhere else.

While it definitely gives Kroger a nice hold on Wisconsin, I can't see what their strategy for Illinois is. The way that Mariano's is built to be an entry into Chicago into very nice stores, albeit a fairly low market share. So is Kroger just going to let their stores in Chicago to be relatively few but nice and upscale, or try to downscale the prototype to build a more common Jewel-Osco competitor?

I don't understand the long-term strategy, either. My best guess is that Kroger senses that Chicago is a tough nut to crack, and is content boosting their reputation (if not marketshare) there with Mariano's for now.

Northern Illinois is another question mark. It would seem logical for Kroger to bridge the gap between Roundy's and downstate IL by opening Kroger or Pick 'n Save stores in cities like Rockford and such...but Kroger did operate in Rockford as Hilander until 2011, when they sold the operation. I wonder if their executives are kicking themselves over that?

I think it's funny in other parts of the country people add an "S" to the name of a store....as noted in the above peanut butter photo....."Kroger's"

I have friends in Ohio and further north...and they always say "Aldi's" or "Kroger's" or "Jewel's" or "Wal Mart's"...

Is this a regional thing? No one here ever says that. I live in Oklahoma.
It's Wal Mart or Aldi.

If you lived in the south would you say "Publix's" or "Winn Dixie's?

Always wondered why the "s" was added................

Ah, that. At least in the case of "Kroger's," there was an actual person named Kroger that the stores could legitimately be seen as belonging to. For Wal-Mart's, or Lucky's, or Jewel's, there...isn't.

And since "Publix" already ends in an "s" sound, perhaps the possessive spelling is "Publi'x?"

Oh well, back to the subject at hand...

[klkla]

Ah, that. At least in the case of "Kroger's," there was an actual person named Kroger that the stores could legitimately be seen as belonging to. For Wal-Mart's, or Lucky's, or Jewel's, there...isn't.

Don't tell that to Sam Walton's heirs.

That could almost make a thread in itself. How the names of chains came to be. Here in SoCal almost all the major chains are named after someone:

Ralphs - George Ralphs
Albertson's - Joe Albertson
Vons - Charles Von der Ahe
Stater Bros. - Cleo and Leo Stater
Gelson's - Bernard and Eugene Gelson

[storewanderer]

People in the south definitely call it "Krogers." Employees doing in-store announcements in Atlanta, specifically. Even the complaint line is 1-800-Krogers.

I think they will go with 100% Kroger brand in the Roundy's division. The time may come when the name "Roundy's" is basically gone. No brand, no stores with the name...

And based on the amount of negativity I hear out of WI about how Pick N Save/Roundy's has been operated over the years, I don't think many people would miss the name Roundy's.

[rwsandiego]

Kroger operated in Chicago until the early 1970's when they sold out to Dominick's. In fact, the Park Ridge Mariano's was a Dominick's that replaced a Dominick's store that started as a Kroger.