Roundy's Selling Off Rainbow Foods

Roundy's Inc. is officially exiting the Twin Cities market, announcing the sale May 7, that 18 Rainbow Foods stores in the Minneapolis area will be sold to Minneapolis-based Lunds Food Holdings, Eden Prairie -based Supervalu Inc. and three other independent retailers.

The companies are paying $65 million for the stores and their inventory. The buyers say they will turn 10 stores into Cub Foods, two stores into Byerly's and keep the Rainbow Foods name on six for the time being

The seller, Milwaukee-based Roundy's, said in a press release that it will exit the Twin Cities entirely by selling or closing the nine Twin Cities Rainbow Foods stores that are not part of the deal. Roundy's has slowly been closing stores in the market for a few years while focusing on Chicago's Mariano's Fresh Market division that Ultimately pushed Safeway-owned Dominick's Finer Foods out of Business last December.

"It looks like the shoe is on the other supermarket's foot right now!"

The deal is expected to be finalized in the next 60 to 90 days.

Roundys currently operates 28 stores under the Rainbow name in the Minneapolis area and Copp's, Pick n' Save, and Metro Market in Wisconsin as well as Mariano's in Chicago.

These 10 Rainbow Foods stores will be converted to Cub Foods stores:

• Chaska – 200 Pioneer Trail
• Eagan -- 1276 Town Centre Drive
• Lakeville – 17756 Kenwood Trail
• Minneapolis (Lagoon) – 1104 Lagoon Avenue
• Minneapolis (Quarry) – 1540 New Brighton Road
• Oakdale – 7053 10th St. N.
• Plymouth – 10200 Sixth Ave. N.
• Roseville (includes stand-alone liquor store) – 1201 Larpenteur Ave.
• St. Louis Park (includes stand-alone liquor store) – 5370 16th St. W.
• St. Paul – 892 Arcade St.

These two Rainbow stores will become Byerly's (a Lund Food Holdings brand):

• Eden Prairie – 970 Prairie Center Drive
• Woodbury (includes stand-alone liquor store) – 7050 Valley Creek Plaza

These six will remain Rainbow Foods under their new owners:

• Maplewood – 2501 White Bear Ave.
• Minneapolis (Lake Street) – 2919 26th Ave. S.
• Plymouth (Plymouth Station) – 16705 County Road 24
• Richfield – 140 W. 66th St.
• St. Paul (Midway) – 1566 University Ave. W.
• West St. Paul – 1660 Robert St. S.

These nine Rainbow Foods stores are not part of the sale. Roundy's will close them if no buyers come forward:

• Bloomington – 2600 American Boulevard W.
• Shoreview – 441 Highway 96
• Blaine – 551 87th Lane N.E.
• Maple Grove – 16401 County Road 30
• Inver Grove Heights – 9015 Broderick Boulevard
• Coon Rapids – 3340 124th Ave.
• Savage – 14100 Highway 13 S.
• Apple Valley – 15125 Cedar Ave.
• Cottage Grove –7280 E. Point Douglas Road

Rainbow Foods is a great store, competing with budget shopping Cub Foods and upscale Lunds/Byerly's

Compared to Chicago grocery shopping: 

Mariano's is a great store, competing with budget shopping Jewel-Osco and upscale Dominick's Finer Foods.