Milwaukee-based Roundy’s Supermarkets Inc. notified the state this week that it plans to close three Pick ‘n Save stores in Milwaukee, West Allis and Saukville, which will result in a total of 226 job losses.
The Saukville Pick ‘n Save store at 810 E. Green Bay Ave. will be taken over by Fox Bros. Piggly Wiggly, which will move its Saukville store there from its existing location at 835 E. Green Bay Ave.
The Saukville Pick ‘n Save store has 84 employees and the Saukville Piggly Wiggly store also has about 80 employees. Fox Bros. Piggly Wiggly plans to keep all of its existing employees at the new store and will need to add about 40 additional employees there, said Pat Fox, president and owner of Fox Bros. Piggly Wiggly.
The closure of the Pick ‘n Save store at 8120 W. Brown Deer Road in Milwaukee will result in the loss of 74 jobs and the closure of the Pick ‘n Save store at 11111 W. Greenfield Ave. in West Allis will result in the loss of 68 jobs.
The employees at the Milwaukee and West Allis stores are represented by United Food and Commercial Workers Union Local 1473.
Sheboygan-based Piggly Wiggly Midwest is buying the Saukville Pick ‘n Save grocery business from Roundy’s and offered its franchisee, Fox Bros. Piggly Wiggly, to move its operations there, Fox said.
The Saukville Pick ‘n Save store is about 10 years younger and about 10,000 square feet larger than the existing Saukville Piggly Wiggly store, Fox said.
The Milwaukee area has too many grocery stores and too many other stores that sell grocery items, Fox said. More grocery store closures are likely to occur in the area, he said.
“The Milwaukee (grocery) market is over-stored,” Fox said. “(The Pick ‘n Save closings are) an example of something that is going to happen a number of times.”
The region’s grocery market is only going to get more competitive after Grand Rapids, Mich.-based Meijer opens several stores.
“It’s an oversaturated situation that is going to get worse before it gets better,” Fox said. “It’s crazy. All of these (other retailers) want to get into this low margin business (in the area).”
To survive, independent grocers must provide a high level of service and different products than what can be found in other stores, he said.
The Piggly Wiggly store in Saukville will move to its new location in November.
In December, Fox Bros. also plans to open a Piggly Wiggly store in the former Rueben’s County Market at 1566 E. Sumner St. in Hartford.
