CX Leaders Kroger, Roundy’s Merge in $800 Million Deal

In a move that is sure to send ripples through the world of brand loyalty, The Kroger Company announced that it is acquiring Roundy’s Supermarkets. Roundy’s operates the Pick ‘n Save, Copps, Metro Market, and Mariano’s stores. The deal is reported to be worth about $800 million, and is expected to close by the end of 2015, pending the satisfaction of customary closing conditions.

The merger will expand Kroger into 151 new stores reaching northern regions in Wisconsin, including Madison and Milwaukee, where Roundy’s is headquartered. The deal also provides Kroger with the valuable Mariano’s name, a portfolio of 34 stores in the Chicagoland area. 

“Mergers for Kroger always involve both parties bringing something to the table,” said Rodney McMullen, Chairman and CEO of Kroger. “We admire what Bob Mariano has done with the Mariano's banner in Chicago, where he has created an urban format that is resonating with customers and we expect to apply Roundy's experience to our stores in urban areas around the country.”

McMullen added: “Kroger's scale and strong financial position will enable Roundy's to reinvest in its home state of Wisconsin while continuing to grow in Chicago. Together, we are committed to investing in Roundy's people, communities, stores, and merchandising to deliver a fantastic customer experience that will create opportunities for associates, grow customer loyalty and revenue, and create value for shareholders.”

Robert A. Mariano, Chairman, CEO, and President of Roundy’s also commented on the deal, saying: “This is a great win for our customers, communities, employees and our shareholders, and I personally look forward to continue to exceed customer and employee expectations.”

Combined, the chain will comprise 2,774 supermarkets across 35 states, employing over 422,000 associates. Following the deal’s closure, Roundy’s will continue to operate as a Kroger subsidiary, and no stores are expected to close as a result of the merge. Roundy’s will retain key members of the leadership team, who will continue to lead the brand.