Rainbow Foods in Brooklyn Park will close next month in the face of stiff supermarket competition and economic decline, according to the grocer’s owner, Roundy’s of Milwaukee, Wis.
The store, at 8020 Brooklyn Blvd., will close Feb. 16, according to a statement from Roundy’s. The store is located across Brooklyn Boulevard from a Target and Cub Foods, and Walmart is located approximately a mile away on County Road 81.
“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 vice president of investor relations and corporate communications, in a statement.
“All of that’s true,” said John Dean, a long-time supermarket analyst who is based in the Twin Cities.
Roundy’s bought Rainbow Foods in 2003 from Fleming Companies, and as part of the acquisition several stores’ leases were terminated, including Brooklyn Park’s, Dean said.
After taking control of Rainbow, Roundy’s reconsidered and the Brooklyn Park store was one of two that reopened.
“It wasn’t a good performer prior to the store’s closure, and it’s never been a performer since then,” Dean said.
Roundy’s closed four Twin Cities Rainbow stores in the last 13 months, including one in Columbia Heights earlier this month, Dean said.
With Target and Walmart’s sales surpassing Rainbow in the last few months, Roundy’s is focusing on the Chicago-area market, he said.
“It’s a good business decision on Rainbow’s part,” he said.
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