WISCONSIN, UNITED STATES - Rumors have swirled around Roundy's concerning whether the retailer is preparing to abandon the Wisconsin retail market. Roundy's operates over 100 Wisconsin-based stores, including:
- 91 Pick 'n Save locations
- 25 Copps locations
- 4 Metro Market locations
A divestiture of this magnitude would significantly shift the balance of power in the region. The question is, however, how much truth is behind the rampant speculation and rumors?
Roundy's Spokesman, James Hyland, unequivocally denied any validity behind these rumors when questioned by The Street's Sarah Pringle.
"Any rumors or innuendos regarding Roundy's selling its Wisconsin stores is 100% false. There is no sale of our Wisconsin stores," he explained.
One hears a different story when speaking with DJL Research Supermarket Consultant and Analyst, David Livingston, however.
"They're not getting anywhere in Wisconsin," he shared, explaining why he believes that virtually all Roundy's locations north of the Illinois state line, save its Metro Market line, are on the table. "Same-store sales continue to plummet. There's tons of new competitors. Everybody's looking at them."
David told The Street that he expects Roundy's to begin selling off store locations in small bunches every few months.
A fellow analyst with Moody's Investors Service Inc, Mickey Chadha, disagreed with David's view somewhat. He shared with The Street that while he agrees Roundy's executives are paying close attention to the proper regional makeup of their stores, he isn't confident a Wisconsin asset sale is the focus.
"Roundy's has been in more of a consolidating mode of evaluating store profitability based on where they are located," he said. "Obviously I think there are going to be more closures, but it depends on how many to [achieve] the optimum level store base."
If Roundy's does choose to sell its Wisconsin assets, The Street notes that Festival Foods, Whole Foods, Trig's and Piggly Wiggly could all be possible buyers.
Only time will tell how this situation will develop. Be sure to stay tuned to ANUK, however, to find out the latest.
