MILWAUKEE, WI
Roundy’s is planning to convert the 11 Dominick’s stores it acquired in a $36 million transaction from Safeway to its Mariano’s banner. Mariano’s is Roundy’s growth banner in the Chicago metropolitan area, according to a press release.
“This acquisition is transformational in terms of Mariano’s expansion plans in the Chicago metropolitan area, allowing us to open 11 additional stores in 2014 in prime locations with great market demographics,” said Robert Mariano, chairman, president and chief executive officer of Roundy’s. “These key locations will seamlessly integrate into and complement our existing base of 13 Mariano’s locations as well as our 5 additional 2014 Mariano’s locations now under construction.”
There will be a transition period of approximately one to two months at which time Roundy’s will take possession of the stores and convert them to Mariano’s stores. .
The conversion of the Dominick’s stores will nearly double Mariano’s store base supporting the strong continued growth prospects that exist for the Mariano’s banner. Due to this continued growth, Roundy’s has determined that allocating additional capital to its attractive growth opportunities is the best use of cash from a long-term shareholder return perspective. Roundy’s will suspend its quarterly dividend so that it can use that cash to grow the Mariano’s business, as a result.
Will this rapid growth of the Mariano’s banner with further expansions on the horizon encourage other retailers in the region to jump at chance to acquire the remaining Dominick’s locations? Stay tuned to DeliMarket TV to find out.
