On the tail of a number of recent expansions and the acquisition of the Lucky’s Market chain, Kroger is now making moves to solidify itself in the Minnesota market for the first time. As one analyst predicts, Kroger may also be looking into a major acquisition with the Supervalu chain, to help its brands stick in the face of a competition-heavy market.
“It’s a crowded market, so it’s going to be hard to add scale unless you do it through an acquisition,” said Rick Shea, President of Minneapolis-based Shea Food Consultants, in a statement to Minneapolis/St. Paul Business Journal. “The obvious candidate is Supervalu and the Cub chain.”
Naming Cub Foods as the top contender in the Minneapolis market, Shea said that Kroger is most likely considering a deal with the retailers parent-company, Supervalu.
This acquisition would place the partnered stores right next to another string of a Kroger purchase, with 117 Roundy’s in Wisconsin. Although Kroger has yet to comment, Shea stated that a possible Kroger-Supervalu acquisition could be an even better strategic move than the Roundy’s purchase.
“Kroger has done a good job integrating acquisitions,” Shea said. “I think they’re best in breed."
As previously reported, Supervalu appointed Mark Gross as company CEO in February, who is seasoned in the realm of retail mergers and acquisitions. Following Kroger’s expansions in a number of states, Shea said that speculation that Kroger will continue in this vein is not out-of-line.
Continue to click back with DeliMarket News as we cover Kroger’s moves in an ever-changing market, and its status in the Minneapolis region.