Roundy’s For Sale … Again
The 77 percent of respondents to a RetailWire poll
in February 2007 who thought it was “very” or “somewhat likely” that
Roundy’s owner Willis Stein & Partners would sell the grocer can’t really
be blamed. After all, a Wall Street Journal piece at the time reported
on how well the chain was doing and everything seemed to be falling into place
for a deal to be made.
Roundy’s, of course, was never sold, but new reports
by the Deal Pipeline (a
subscription site) and Supermarket News maintain that Willis Stein is
looking to sell again.
The Supermarket News piece speculated that potential
suitors could include investment firms, Safeway’s Dominick’s Finer Foods division,
Kroger, and Schnuck Markets. The Deal Pipeline list included Supervalu
on its list.
David Livingston, principal at DJL Research and a member of the RetailWire BrainTrust,
told The Business Journal of Milwaukee, that whatever company acquires
Roundy’s will have an uphill battle against stiff and growing competition from
Aldi, Walmart and Woodman’s Food Markets.
“Seems like every week we hear another Wal-Mart coming in, and every
time one of these comes in, it’s going to change the value of (Roundy’s),” Mr.
Livingston told The Business Journal.
- Reports say Roundy’s is for sale again – The Business Journal of Milwaukee
- Roundy’s Supermarkets for Sale – Supermarket News
Discussion Questions: Do you think Roundy’s will be sold this time around? What possible acquirer do you think would be the best fit for Roundy’s?