Shop ‘n Save is checking out of the grocery-store business in the St. Louis region.
Schnucks Markets is purchasing 19 area Shop 'n Save groceries owned by parent company SuperValu and will rebrand them as Schnucks stores. The remaining 17 Shop 'n Save locations will close if SuperValu is unable to find a buyer by the end of the year.
The acquisition will boost the number of Schnucks grocery stores by 20 percent. Fifteen of the stores include pharmacies, which will also be purchased and run by Schnucks.
MORE: Supermarket analyst: Shop 'n Save caught in changing grocery landscape
Schnucks president and CEO David Peacock said the company intends to keep all of the stores open under the Schnucks banner. Schnucks will take over ownership of the individual stores throughout October.
“We were very intentional about the stores we chose to acquire,” Peacock said. “We thought they were either in a market area that worked very well for us or filled a gap for us. We think we have a very good chance of being successful with those stores.”
Recently, Schuncks acquired the Shop ‘n Save in Maplewood when the store’s lease terminated. “That was a hole for us,” Peacock said. “There are a few more [stores] in areas like that; Fenton and Arnold, for example. This acquisition puts us in a position to better serve the whole region.”
Loading...
Minnesota-based SuperValu put the grocery chain on the market earlier this year. Peacock said Schnucks had been in negotiations for some time on the acquisition.
Mark Gross, SuperValu’s president and CEO, said in a news release: “This transaction is an important step in the continued transformation of our business. Schnucks is an excellent retailer in the St. Louis area and we’re pleased that these stores will become a part of their operation, including continuing to serve the communities and providing jobs to many of our employees.”
Peacock said Schnucks will offer jobs to the Shop ‘n Save employees at the 19 stores pending the results of any legally required background checks. “We look forward to adding 12- to 13-hundred new teammates to our team,” Peacock said. “We see it as an opportunity to retain jobs.”
Union employees of Shop ‘n Save will be offered a position at an equal-wage rate, with comparable hours and work duties, according to details of the agreement provided by both companies. Eligible employees will also receive health-care coverage and pension contributions consistent with union agreements.
Pharmacies to remain open
As part of the deal, Schnucks will acquire 15 in-store pharmacy locations and one stand-alone pharmacy in Union, which will remain open.
Prescription files at 10 other Shop ‘n Save pharmacy locations not included in the purchase will be transferred to Schnucks pharmacies in the area. Customers from those Shop ‘n Save pharmacies will receive information about the transfer of their pharmacy files within the next several days. Information will also be available at each pharmacy.
Schnucks will also purchase four of Shop ‘n Save’s seven fuel centers.
Distribution Center to close
SuperValu expects to close its St. Louis Distribution Center in Hazelwood later this year following the completion of the Schnucks transaction and the sales or closures of the remaining Shop ‘n Save stores.
Supervalu will serve as the primary supplier for nine of Schnucks’ existing stores located across northern Illinois, Iowa and Wisconsin.
Shop ‘n Save locations sold to Schnucks:
- 1721 Homer M. Adams Parkway, Alton
- 800 Carlyle Avenue, Belleville
- 634 Berkshire Blvd, East Alton
- 2122 Troy Road, Edwardville
- 1900 East Edwardsville Road, Wood River
- 1253 Water Tower Place, Arnold
- 7909 State Highway N, Dardenne Prairie
- 45 Gravois Bluffs Plaza, Fenton
- 1275 North Truman Blvd, Festus
- 2183 Charbonier Road, Florissant
- 1032 Lemay Ferry Road, Lemay
- 3740 Monticello Plaza, O’Fallon, Missouri
- 1421 Mexico Loop Road East, O’Fallon, Missouri
- 10634 St. Charles Rock Road, St. Ann
- 60 Harvester Square, St. Charles
- 9070 St. Charles Rock Road, St. John
- 7057 Chippewa St., St. Louis
- 5780 South Lindbergh Blvd., St. Louis
- 100 Jungerman Road, St. Peters
- 500 West Highway 50, Union
Follow Melody on Twitter: @melodybird
