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    Roundy's Closing 2 More Rainbow Stores

    Grocer shuts 5 locations in Twin Cities area over past year

    Milwaukee-based Roundy's Supermarkets is closing two more Rainbow Foods locations in the Minneapolis-St. Paul market, bringing the total number of that banner's stores to shutter up to five in the past year.

    Citing increased competition and changing consumer habits, Roundy's will close the Rainbow store on Central Avenue in Columbia Heights this week and a Brooklyn Park location will close in mid-February, the Minneapolis Star-Tribune reported.

    “The economic downturn over the last few years, coupled with an increased competitive footprint from the likes of Walmart and others, has made it hard to control costs and remain competitive in the geographies where we have closed stores,” said James Hyland, Roundy’s VP of investor relations and corporate communications, in a press release.

    Rainbow also has closed stores in Plymouth, Forest Lake and Robbinsdale, bringing the banner's total store count in the Twin Cities to 27 locations.

    Competition Intensified in Twin Cities

    Rainbow and other traditional grocers like the hometown Cub Foods have seen increased competition from Walmart and Target. Cub still has the most grocery sales volume in the greater Twin Cities, but Rainbow has fallen from second to fourth, behind Target and Wal-Mart, according to the Star-Tribune.

    Roundy’s acquired Rainbow Foods in 2003 with the intention of selling it; unable to find a buyer, Roundy’s has been closing stores when leases on storefronts expire, the S-T reported.

    Meanwhile, Roundy's has been investing heavily in the Chicago area with its Mariano's Fresh Market brand, which the company considers to be its growth banner.

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