Roundy’s takes loss on closures, acquisitions

Milwaukee-based Roundy’s Inc. reported a second quarter net loss of $27.7 million, compared to net income of $13.5 million in the second quarter of 2013.

Revenue was $971.9 million, up from $868.3 million in the same period a year ago.

Roundy’s opened seven stores during the quarter, six of which were Mariano’s brand stores in the Chicago market, where it has been expanding. It also closed a Wisconsin distribution center and nine Rainbow stores, which resulted in some additional costs.

“We continue to be proactive on a number of fronts to improve performance over the long term,” said Robert Mariano, chairman, president and chief executive officer of Roundy’s. “We recently closed on the sale of 18 Rainbow stores that was announced in May and we have closed the remaining nine stores not included in the sale, completely exiting the Twin Cities market. We are also closing our Stevens Point distribution center at the end of the third quarter and we implemented additional cost containment initiatives during the second quarter. Our operating results during the quarter were negatively impacted by these initiatives as well as start-up costs related to the Dominick’s stores acquired from Safeway. We are confident that the strategic actions we started in the second quarter will improve our cost structure, operational efficiency and overall execution to provide positive long-term benefits to our business.”

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