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Future unclear for Shoreview Rainbow Foods
The Rainbow Foods store at 441 Highway 96 in Shoreview is up for sale, and if its parent company, Roundy’s, doesn’t find a buyer soon, the store will be closed.
Roundy’s announced May 7 it will be pulling out of Minnesota, citing the tough economy and a competitive local grocery market in which it was tough to survive, according to a company press release.
Supervalu, Lunds and three other locally based grocery companies are purchasing 18 Twin Cities Rainbow locations from Roundy’s for $65 million; some will be converted into Cub Foods locations, some will remain under the Rainbow banner and two will be converted into Byerly’s locations, according to a Supervalu press release.
Shoreview mayor Sandy Martin said she and the council had heard rumors of change at the Rainbow, and the news of its possible closure “didn’t catch us off guard.”
Martin said she’d heard from many Shoreview residents who said they were “fans” of the Rainbow, and that she was “personally disappointed” by the news, though she wasn’t certain the city would be negatively impacted by potentially losing the store because the area is “well served” by other grocery stores, she stated.
Shoreview is currently conducting a corridor study, and Martin said the Rainbow news will be factored into it.
Regardless of what happens with the Rainbow, Martin said it would be best for the city to have the space at 96 and Hodgeson Road filled.
“It’s an important corner in Shoreview and we want a quality business in that location,” she said.
Rainbow stores in Roseville, at 1201 Larpenteur Ave., and in Minneapolis, at The Quarry near St. Anthony, will become Cub stores. Stores converting from Rainbow to Cub will be closed for one to two days for re-branding.
The Shoreview Rainbow, along with eight other locations in the metro area, is not included in the agreements, and Roundy’s will seek third-party buyers for the stores or close them as it pulls out of the market. A Supervalu spokesman said the company is planning to close the sale within 60 days.
— Mike Munzenrider