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Dominick’s sells 11 stores to Mariano’s supermarkets

Dominick's Finer Foods has closed all its stores including grocery 2503 Waukegan Road Bannockburn. |  PKrochmal/Sun Times Media

Dominick's Finer Foods has closed all of its stores, including the grocery at 2503 Waukegan Road, Bannockburn. | Pat Krochmal/Sun Times Media

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the 11 stores

The Dominick’s stores bought by Mariano’s parent company, Milwaukee-based Roundy’s, are:

◆ Aurora: 3025 E. New York St.

◆ Buffalo Grove: 450 Half Day Rd.

◆ Chicago: 5201 N. Sheridan Rd.

◆ Chicago: 3145 S. Ashland Ave.

◆ Chicago: 2021 W. Chicago Ave.

◆ Gurnee: 6655 Grand Ave.

◆ Northfield: 1822 Willow Rd.

◆ Park Ridge: 1900 S. Cumberland Ave.

◆ Shorewood: 950 Brook Forest Ave.

◆ Westchester: 3020 S. Wolf Rd.

◆ Western Springs: No. 14 Garden Market St.

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Updated: January 4, 2014 6:22AM



Dominick’s has sold 11 stores to Mariano’s supermarkets in a $36 million deal, the companies announced Monday.

The Dominick’s stores to be taken over by Mariano’s parent company, Milwaukee-based Roundy’s, include three in Chicago and eight in the suburbs. Safeway Inc., which operates 72 Dominick’s stores in the Chicago area, said in October it would exit the local market by year’s end.

Safeway, Dominick’s parent company, now has 57 Dominick’s stores left to either sell or close, after the company sold four to Jewel-Osco and the 11 announced Monday to Mariano’s. Safeway has said it will shutter any stores left unsold by Dec. 28.

Dominick’s employees at the stores being sold to Mariano’s will lose their jobs, get severance pay and be able to apply for new jobs at the Mariano’s stores. Mariano’s employees are members of Local 881 of the United Food and Commercial Workers union.

Mariano’s now employes 5,000 at its 13 Chicago-area stores, and will employ 10,000 by this time next year after it expands to 29 stores, including the Dominick’s stores and five new stores under construction. Each store employs 450 to 500 workers.

Safeway said in a statement that it “continues to be actively engaged” in finding buyers for the remaining Dominick’s stores.

A real-estate source told the Sun-Times on Monday that Whole Foods plans to take over seven Dominick’s locations, and that Jewel-Osco, which bought four Dominick’s sites already, could soon announce the purchase of 12 to 16 more Dominick’s stores.

Five of the Dominick’s stores will be converted to Mariano’s within 30 to 45 days after Mariano’s takes over in late January; another five will be converted 30 to 45 days after Mariano’s takes over in early March, and the west suburban Westchester store will reopen in late 2014 after an extensive remodeling, Roundy’s CEO Bob Mariano told the Sun-Times after the announcement.

Mariano’s will spend $500,000 on each Dominick’s store in an initial remodel, and then spend $3.5 million per store within the next few years to fully remake them.

“It’s a great opportunity for us to advance the growth of Mariano’s and bring what we do — the customer service, freshness, quality and assortment we’re known for — to more neighborhoods,” said Mariano, who first told the Sun-Times 10 years ago of his supermarket expansion plans locally.

Roundy’s will finance the deal with debt and with cash freed up by suspending its quarterly dividend.

Bob Mariano spent 27 years working his way to the top job at Dominick’s, which he ran from 1995 to 1998.

Safeway, based in California, bought Dominick’s in 1998 when Dominick’s had 116 stores and was lauded as having “an enviable reputation” as a leading grocer here. Email: sguy@suntimes.com

Twitter: @sandraguy



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