Rainbow stays open in Midway Center

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For the last few months, the fate of Rainbow Foods in the Midway Center was questionable. But, after a sale, and short closure, Rainbow remains open under its new owner SuperValu. (Photo by Tim Nelson) For the last few months, the fate of Rainbow Foods in the Midway Center was questionable. But, after a sale, and short closure, Rainbow remains open under its new owner SuperValu. (Photo by Tim Nelson)

By JANE MCCLURE

After closing for a few days in mid-July, Midway Center’s Rainbow Foods store is open again. The store held a sale, closed, then reopened under the ownership of SuperValu. Long lines formed to buy meat, produce and the remaining items from its days as part of the Roundy’s chain of grocery stores.

A SuperValu spokesperson said the store would continue to operate as Rainbow Foods, but under that company’s ownership. The Midway Center store looks much the same but brands have changed.

SuperValu owns Cub Foods stores and chains in other states. SuperValu announced in July it supplied the first of 18 Rainbow stores that are being acquired as part of the transactions announced May 7 between Roundy’s and a consortium of SuperValu and independent retailers. Following the store conversions, SuperValu will supply all 18 of the acquired stores out of its Hopkins distribution center.

Ten of the 18 Rainbow stores will become Cub Foods locations, including one at 1201 Larpenteur Ave., Roseville. Two will operate as Byerly’s and the other six will remain Rainbow stores including the store at Midway Center.

“I am very pleased that we are now adding these 18 stores to SuperValu’s distribution network and that we are expanding our supplier relationship with a group of very strong independents and longtime customers of our Independent Business segment. We expect these fine retailers will serve the Twin Cities better than ever with an expanded store base,” said Sam Duncan, SuperValu president and chief executive officer. “Each of these independent retailers, along with Cub, are longtime grocers who know this market and their customers and are actively involved in their stores and communities.” The store was sold earlier this year by Wisconsin-based Roundy’s Inc.,

Nine suburban Rainbow Foods stores closed July 22 as buyers couldn’t be found.

The closings and transfers of ownership marked the end of more than a decade of Roundy’s operations in the Twin Cities. Roundy’s officials said the recent economic downturn and increased grocery store competition made it difficult to be viable here. Grocery sales by stores such as Wal-Mart and Target have cut into the traditional grocery store business.

Roundy’s has attempted to sell the Rainbow Foods chain in the past and had been closing stores as leases expired. It was down to 27 stores when the sales were announced earlier this year.

While Midway Center has had groceries available since it opened in 1956-57, there hasn’t always been a grocery where Rainbow is now. The site was initially the home of the G.C. Murphy Co. Department Store. There was a Klein’s Supermarket elsewhere in the center when it opened.

Rainbow opened in Midway Center in 1993, rising from the ashes of the longtime Twin Cities Applebaum’s grocery chain. Applebaum’s had almost 40 stores at its peak. Rainbow has its roots in that chain and in the old National Tea stores. Since 1993 Rainbow has had a succession of owners, including Gateway and Fleming Foods.

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