Roundy's CEO Bob Mariano doesn't expect much will change, for his role or the chain, immediately following its merger with Kroger. The deal was announced yesterday, with Kroger buying the Wisconsin-based grocer for roughly $800 million.
With Roundy's, Kroger (NYSE:KR) adds stores in new markets and acquires an established up-market urban format with the Mariano's banner in Chicago. It's a good pairing, most analysts believe.
But Roundy's is not without issues. Roundy's has been "hurtling toward financial crisis" noted Supermarket News, and would most certainly have been headed toward bankruptcy had a buyer not emerged.
Making Roundy's attractive to a buyer was not Mariano's goal, he told FierceRetail, but now that there is strong financial backing from Kroger, the company will have the ability to grow the Mariano's banner while taking advantage of some of the back-end efficiencies that Kroger can provide.
"The synergies haven't been articulated yet," he said. "There's more work to follow."
Mariano will remain in his current position with Roundy's and spent much of Wednesday assuring shoppers that nothing will change at their local stores.
Kroger is no stranger to absorbing existing supermarkets. It bought Harris Teeter, another up-scale banner, in 2013 for $2.4 billion. Roundy's also operates Pick 'n Save stores in Wisconsin.
-See this Supermarket News story
-See this Chicago Tribune article
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