MILWAUKEE, WI – Roundy's has announced that it will be divesting itself of three Wisconsin Pick 'n Save locations. Two of the stores, one in Milwaukee and one in West Allis, will be closed outright, and the third Saukville location will be sold to Piggly Wiggly.
"Roundy's signed a definitive sale agreement with Piggly Wiggly that we believe will provide better stewardship for this store and the community it serves," said James Hyland, Roundy's Vice President of Investor Relations. "We believe that under the new ownership, this store and their employees will prosper."
Regarding the two store closures, which the company has announced will go into effect on November 5th, 2014, Hyland said that it was just a part of the normal business cycle.
"The opening, closing and sale of stores are part of our normal course of business and we make these decisions based on results and the level of consumer demand in the market," he commented. "Despite our initiatives to remain competitive in these two locations, we have made the strategic decision to close these two stores."
Piggly Wiggly has announced that it will be relocating its own store in Saukville across the street into the much larger Pick 'n Save it will be acquiring from Roundy's.
"It's an exciting thing for our organization and all our team members," said Pat Fox, President of Fox Bros.
Regarding the motivation behind the sale, Fox shared with the Milwaukee-Wisconsin Journal Sentinel that it was a move that made sense for all parties.
"If you look at the Milwaukee market, there are certain areas that are just over-stored. There's no other way to say that and this would be an example of that,” he said. "It was a natural consolidation in the marketplace.”
According to the Milwaukee-Wisconsin Journal Sentinel, Fox plans on adding as many former Pick 'n Save employees to the Piggly Wiggly staff as possible during the transition process.
