Roundy’s Reports ‘Disappointing’ Q3

As news of its merger deal hung in the air, Milwaukee-based Roundy’s Inc. reported a 0.2 percent drop in net sales and a net loss of $8.6 million during its third quarter ending Oct. 3.

“Our third-quarter results were disappointing as sales and EBITDA did not meet our expectations,” said Robert Mariano, Roundy’s chairman, president and CEO. “The sales shortfall was primarily due to continued competitive store openings in our Wisconsin markets. Despite a very competitive pricing environment, we were pleased to maintain our gross margin rate compared to the prior year. We remain committed to our strategic initiatives, improving execution, and profitably growing sales across all of our markets.”

Year to date, net sales from continuing operations increased 6.2 percent to $2.95 billion, while net loss from continuing operations reached $10.4 million, or 22 cents per common share.

But the bigger news this week is Roundy’s acquisition by The Kroger Co., which will bring 151 supermarkets under the Mariano’s, Pick ‘n Save, Copps and Metro Market banners into the extended family of the Cincinnati-based retailer -- the nation’s largest traditional grocer.