Shopko, Pamida to merge
GREEN BAY, Wis. — Mass merchandise retailers Shopko Stores and Pamida are merging, the two companies said Wednesday.
The combined $3 billion company will operate nearly 350 stores in 22 states, mostly in smaller and rural communities, with plans to add more stores starting in the second half of this year. Green Bay, Wis.-based Shopko and Omaha, Neb.-based Pamida currently have 149 stores in 13 states and 193 stores in 17 states, respectively. Financial details of the merger between the two private companies — both owned by affiliates of Boca Raton, Fla.-based Sun Capital Partners — were not disclosed.
"Merging Pamida and Shopko is a great move for our businesses and our customers given our complementary strengths, store networks and consumer-centric retail models," Shopko chairman, president and CEO W. Paul Jones said. "The Shopko Hometown store format, featuring our unique merchandising strategy and improved store design, is an ideal fit for the smaller communities that Pamida serves with its exceptional service and community-minded approach. We intend to be the leader in this category by combining the best of Shopko and Pamida in our aggressive new store growth plans."
After finishing the conversion of Pamida stores to Shopko stores, the combined company will add new Shopko Hometown stores — which range from 15,000 to 35,000 sq. ft. and combine pharmacies with toys, electronics, clothing, lawn and garden products and other items — in the second half of 2012 and into 2013.
"This is an exciting move for Pamida, and the Shopko Hometown format will offer our customers an even better retail experience and a new and differentiated product offering that is not currently available in the smaller communities we serve," Pamida president and CEO John Harlow said. "Pamida’s great associates, store locations, focus on personal service and commitment to giving back in our local communities are all ideal complements to Shopko."
Morningstar names Costco’s Jim Sinegal CEO of the Year
CHICAGO — Investment research firm Morningstar has named the outgoing CEO of Costco Wholesale as its 2011 CEO of the Year, the company said Wednesday.
Costco CEO Jim Sinegal, who retired on New Year’s Day, received the recognition for what Morningstar called his "exemplary corporate stewardship, independent thinking" and creating "lasting value for shareholders."
"This year’s nominees have each added intrinsic value to the companies they run," Morningstar chief equities strategist and editor Paul Larson said. "James Sinegal, who has served as CEO since co-founding Costco in 1983, has created and maintained value for all company stakeholders during his tenure."
The retailer announced Sinegal’s plan to step down in September, with COO Craig Jelinek replacing him.
Economic approach leads to declines
Sales of household cleaning products have seen a decline over the last four years, according to a recent study by Mintel — a trend the market research company expected will continue until 2015.
Mintel attributed the dip in sales to consumers cleaning their homes on an as-needed basis and taking a more economy-focused approach to the category. Cleaning cloths/wipes, furniture polish and floor cleaners have had the best growth. Sales of green products slowed, but still show promise.
The article above is part of the DSN Category Review Series. For the complete Household Cleaning Sell-Through Report, including extensive charts, data and more analysis, click here.