<p>As Roundy’s closes some of its midmarket stores, the company is refocusing on its higher-end concept Mariano’s in Illinois. The grocery retailer’s conventional banners which include Rainbow Foods in the Twin Cities, have been hit hard by low-price competitors such as Wal-Mart, Target and Costco. Rainbow was once the Twin Cities’ No. 2 grocery chain, but has recently moved into the fourth position. Over the past 13 months it has targeted 15 percent of its stores in the Twin Cities for closing, according to the Star Tribune.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>With the shift toward higher-end, niche stores picking up momentum in the market, Roundy’s is stirring up the Chicago market with its Mariano’s Fresh Market banner; mixing the best of a Rainbow with higher-end touches more associated with chains like Whole Foods.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">“Mariano’s is kind of an updated version of what the best supermarket should look like,” said Scott Mushkin, stock analyst at Wolfe Research. “It’s gotten a lot of buzz.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Roundy’s closed the Rainbow in Columbia Heights last month with plans to close its Brooklyn Park outlet. Last year, Rainbow supermarkets in Forest Lake, Robbinsdale and Plymouth were closed which leaves , and the chain will have 27 stores in the Twin Cities after Sunday’s closing in Brooklyn Park.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Roundy’s core business at Rainbow and Pick ’n Save “has been declining rapidly,” said Karen Short, a stock analyst at Deutsche Bank. But in Chicago, Roundy’s is a growth story with its Mariano’s banner.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">“Mariano’s stores are definitely unique,” Short said, “and they are making a big bet on those.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p>Traditional conventional grocery which serves a broad middle market have come under intense pressure as discounters apply continual pricing pressure, and higher-end competitors cater to the more affluent and larger spending segment.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">More closings wouldn’t be surprising either, Mushkin stated. “I think they have bigger fish to fry in Milwaukee and Chicago.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">In Milwaukee, Roundy’s conventional chain, Pick ’n Save is also under competitive fire though it remains a market leader. Roundy’s noted in a statement to the Star Tribune that it remains committed to its current Rainbow locations.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Constant competitive and promotional activity is taking place in the grocery retail market. “As a result of those factors,” the company said, “there are situations that have occurred both in our Minnesota and Wisconsin markets where, despite our best efforts, we could not remain competitive in certain locations.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">Stay tuned as we follow the competitive grocery retail market as it continues to heat up.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.startribune.com/business/245599871.html?page=all&prepage=1&c=y#continue" target="_new"> Star Tribune</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://phx.corporate-ir.net/phoenix.zhtml?c=251227&p=irol-IRHome" target="_new"> Roundy’s</a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
