Kroger Eyes Minnesota Market and Possible Supervalu Acquisition
- by Laura Hillen
CINNCINNATI, OH – With the help of its recent partnership with natural organic retail chain Lucky’s Market, Kroger Co. is now reportedly looking to lay stakes in the Minnesota market for the first time. One analyst predicts that Kroger is also eying a major acquisition with Supervalu, to help the chain stick amongst a slew of competitors.
“It’s a crowded market, so it’s going to be hard to add scale unless you do it through an acquisition,” said Rick Shea, President of Minneapolis-based Shea Food Consultants, in a statement to Minneapolis/St. Paul Business Journal. “The obvious candidate is Supervalu and the Cub chain.”
Lucky’s Markets were scouting store locations last week in the Minneapolis area, which would place these Kroger-partnered stores neighboring to Wisconsin, where Kroger recently bought Roundy’s and its 117 stores.
Shea says that, given that the top share of supermarkets in Minneapolis is secured by Cub Foods, he predicts that Kroger could very well be considering a deal with the chain’s parent-company, Supervalu, to secure Kroger's place in the Twin Cities market.
While Kroger has yet to comment on any acquisition speculation or its move into the Minneapolis market, Shea says that this could be a better strategic move than its recent merger of Roundy’s Pick ‘n Save stores.
“Kroger has done a good job integrating acquisitions,” Shea said. “I think they’re best in breed."
As we previously reported, Supervalu named Mark Gross as President and CEO of the company, who is no stranger to mergers and acquisitions in the buy-side industry.
Given Kroger’s recent investments in Tennessee and Michigan, expansions with Lucky’s in Florida, and hirings and executive appointments, it’s safe to speculate that Kroger will continue to make big moves as it fights to stay at the head of the ever-changing market.
Keep up with AndNowUKnow as we continue to report on Kroger and Lucky’s Market’s moves into the Minneapolis market, and breaking acquisition news in the industry.