Safeway Inc. has agreed to sell 11 of its Dominick's food and drug combo stores in metropolitan Chicago to Roundy's Inc.

Safeway, Dominick's, Roundy's, Mariano's, food and drug combo stores, supermarket, Robert Mariano, pharmacies, Chicago market, New Albertson's Inc., Jewel-Osco

Other Services
Reprints / E-Prints
Submit News
White Papers

Retail News Breaks Archives

Safeway to sell 11 Dominick's stores to Roundy's

December 2nd, 2013

PLEASANTON, Calif., and MILWAUKEE – Safeway Inc. has agreed to sell 11 of its Dominick's food and drug combo stores in metropolitan Chicago to Roundy's Inc.

Roundy's said Monday that under the $36 million cash and lease assumption transaction, it will take possession of the stores and convert them to its Mariano's supermarket banner over a transition period of about one to two months.

The deal is expected to close in the second half of December, according to Roundy's. The Dominick's stores being sold — all of which house pharmacies — include three locations in Chicago and stores in Park Ridge, Western Springs, Northfield, Westchester, Buffalo Grove, Gurnee, Aurora and Shorewood, Ill.

Roundy's noted that the transaction will nearly double Mariano's store base.

"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," Robert Mariano, chairman, president and chief executive officer of Roundy's, said in a statement. "These key locations will seamlessly integrate into and complement our existing base of 13 Mariano's locations as well as our five additional 2014 Mariano's locations now under construction."

In addition, the deal stands to boost Roundy's pharmacy count. The retailer currently operates 163 supermarkets, with 101 pharmacies, under the Pick 'n Save, Rainbow, Copps, Metro Market and Mariano's banners in Wisconsin, Minnesota and Illinois.

Safeway announced in October that it plans to exit the Chicago market by early next year. That month the company said it sold four Dominick's to New Albertson's Inc., the operator of Jewel-Osco supermarkets.

Safeway said Monday that it continues to be "actively engaged" in a process to identify purchasers for its remaining stores in the Chicago area.

Leaving Chicago is the latest move in Safeway's plan to focus on its core markets. In June, the company announced the a deal to sell Canada Safeway Ltd. to food and drug retailer Sobeys Inc. for $5.8 billion (Canadian). That agreement closed early last month.