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Roundy’s Supermarkets to enter Chicago area

Wisconsin grocery giant to open up to 12 stores in Chicago market

Roundy’s Supermarkets Inc. will open as many as 12 stores in the Chicago area over the next three years, the company said.

The announcement follows the acquisition of five Jewel-Osco stores in the Milwaukee area in January of this year and signals the continuing growth of this Milwaukee-based chain, which operates Pick ‘n Save and Copps stores in the state of Wisconsin and Rainbow stores in the Minnesota market. The company now has one store in Illinois, a Pick ‘n Save in Waukegan, but more are on the way and soon.

The new stores in Chicago will carry a new name that has not been disclosed.

“We feel pretty good about going into the Chicago market and being able to serve the needs of the Chicago customer,” said Robert Mariano, chief executive officer at Roundy’s.

Mariano was CEO at Dominick’s, the No. 2 supermarket chain in Chicago, until 1998. Since joining Roundy’s, Mariano has hired a number of managers from Dominick’s. That puts Roundy’s in a good position to know how to compete in Chicago. Most in the Chicago market still consider Dominick’s to be the most “upscale” chain in the area. While there may be other single point grocers who are considered trendy or upscale, none have the number of stores that Dominick’s has.

With Mariano’s knowledge and experience in the Chicago area, Roundy’s is sure to give other supermarkets fits in the near future

The first store in Chicago will be at 1515 N. Halsted St., at the site of a former YMCA.

Roundy’s announcement Monday comes about a week after Dominick’s corporate parent, Safeway Inc., said it would close 14 underperforming stores in the Chicago area. Mariano said he doesn’t plan to buy any of the Dominick’s locations but plans instead to build many of the dozen new stores from the ground up. A strategy that indicates he is more in interested in design and location than strictly design.

“Now is a good time to enter this market, while Safeway is still confused about its future with Dominick’s and SuperValu goes through its learning curve with Jewel,” said David Livingston, a Pewaukee supermarket consultant who formerly worked for Roundy’s.

Roundy’s getting bigger

Roundy’s, with about $4 billion in sales and 22,000 employees, operates 153 stores in the United States. Recently, the company has been growing with new construction and by purchasing stores it supplies from independent owners and operators.

With their base size they should be able to make their mark here in Chicago over the next few years.