Following a series of renovations, the closed discount grocers will reopen their doors as Schnucks grocery stores less than a few days later. Schnucks also will acquire four of Shop ‘n Save’s seven fuel centers.
According to Todd Schnuck, Chairman and CEO of Schnuck Markets, the acquisition was part of an effort to grow locally and refocus on St. Louis-based clientele.
“Schnucks is proud to be growing in our hometown of St. Louis, excited about the opportunity to serve new customers, and looking forward to welcoming the employees at these 19 stores to Schnucks,” Schnuck said in an official press release. “We want longtime customers of each store to know that we are eager to earn your business, and we’ll be working closely with SUPERVALU and Shop ‘n Save to ensure a smooth and successful transition.”
Shop ’n Save, headquartered in Kirkwood, has 36 stores in the St. Louis market and is a subsidiary of SUPERVALU, which is based in Minnesota. Earlier in 2018, SUPERVALU was acquired by United Natural Foods for $2.9 billion. However, even before that, SUPERVALU had sought to divest its retail operations, including the Shop ’n Save brand, though a buyer didn’t emerge.
About 1,500 Shop ’n Save employees working at the closing locations will be offered jobs at the Schnucks stores. Shop ’n Save staff members, including store directors, pharmacy managers and pharmacists will be interviewed for other employment opportunities at comparable wage rates and to work a comparable number of hours. Eligible employees also will receive health care coverage and pension contributions consistent with existing union agreements.
“Our intention is to make a strong offer to the Shop ‘n Save employees at these 19 stores in hopes they choose to join the Schnucks team,” Schnuck said in an official release. “They know their stores and their communities and will be an integral part of the conversion process.”
SUPERVALU also released a statement on Sept. 17 stating that the stores not acquired by Schnucks will remain open, but if SUPERVALU cannot identify one or more buyers for these remaining stores in the near term, they will be closed later in 2018. The company also expects to close its St. Louis Distribution Center.
This isn’t Schnucks’ first round of acquiring other stores. In 1970, the grocer also acquired Allied Companies’ Bettendorf-Rapp division. Then, in 1995, it acquired 60 National supermarkets, including 53 in the St. Louis region. The deal nearly doubled the grocer’s store count.
The list of Shop ‘n Save stores being sold to Schnucks includes the following local locations:
• 7909 State Hwy. N, Dardenne Prairie
• 3740 Monticello Plaza, O’Fallon
• 1421 Mexico Loop Road East, O’Fallon
• 60 Harvester Square, St. Charles
• 100 Jungerman Road, St. Peters
A schedule of the closures, reopenings and other financial details shave not been disclosed at this time.
Alongside the acquisition, Schnucks also announced two completely new locations. The grocer opened a Maplewood location, which had previously operated as a Shop ‘n Save, in August 2018. A new Schnucks in Warrenton is currently under construction and is scheduled to open in fall 2018.
Schnuck Markets, Inc. was founded in St. Louis in 1939 and is a third-generation grocery and pharmacy retailer. Schnucks currently operates about 99 stores across Missouri, Illinois, Indiana, Wisconsin and Iowa, and employs more than 13,000. According to Forbes’ 2017 rankings, Schnucks is the 170th largest privately-owned company in the country and the 16th largest privately-owned grocer.