) is geared to expand into untapped markets Recently, the company
moved a step ahead in this regard.
The grocery retailer has started the conversion (supplying
Supervalu's items from its distribution center to the Rainbow
stores) of the first of the 18 Rainbow stores acquired on May 7.
On May 7, 2014 SUPERVALU and a consortium of traders entered a
deal to take over 18 Rainbow grocery stores, including 13 Rainbow
pharmacies and 3 Rainbow liquor stores, in the Twin Cities. (Read:
SUPERVALU Bids for Twin Cities Stores
Four other Twin Cities-based independent grocery retailers -
Jerry's Enterprises, Haug Enterprises, Lund Food Holdings and
Radermacher Enterprises - are also participating in the
Over the next two weeks, SUPERVALU along with its four Twin
Cities-based independent retailers are expected to complete the
conversion of all the 18 Rainbow stores. After the conversion, 10
Rainbow stores will be rebranded as CUB, 2 will become Byerly's
outlets (located in Eden Praire and Woodbury) and 6 will retain the
name under different ownership (located in Minneapolis, Plymouth,
Richfield, West St. Paul, Maplewood and St. Paul (Midway)). The 10
CUB Food outlets will be located in Chaska, Lakeville, Minneapolis
Lagoon, Minneapolis Quarry, Plymouth, Roseville, St. Louis Park,
St. Paul, Eagan and Oakdale.
CUB Foods is a combination of corporate-owned and franchised
locations. Post-deal closure, CUB Foods will total 66 stores in the
Twin Cities and 77 stores banner-wide.
Of the 18 stores, SUPERVALU will have full ownership in 3 CUB
stores, majority ownership in two CUB stores, minority ownership in
three CUB stores and 100.0% ownership in two Rainbow stores as well
as 11 pharmacies.
Other Stocks to Consider
SUPERVALU carries a Zacks Rank #3 (Hold). Other stocks in the
retail sector worth considering include
Pinnacle Foods Inc.
The Hain Celestial Group Inc.
TreeHouse Foods Inc.
). While Hain Celestial and TreeHouse Foods sport a Zacks Rank #1
(Strong Buy), Pinnacle Foods carry a Zacks Rank #2 (Buy).
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SUPERVALU INC (SVU): Free Stock Analysis Report
PINNACLE FOODS (PF): Free Stock Analysis Report
HAIN CELESTIAL (HAIN): Free Stock Analysis
TREEHOUSE FOODS (THS): Free Stock Analysis
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