It's a big expansion for a well-known St. Louis company. The family that owns Schnuck Markets is announcing a significant Midwest grocery acquisition.
The 1939 Group, Inc., a new holding company owned by the Schnuck family, has agreed to purchase 100% of the shares of the Wisconsin-based parent company of Skogen’s Festival Foods and Hometown Grocers, Inc.
This deal will add 51 new stores to the family’s portfolio, expanding the footprint to 164 stores in Missouri, Illinois, Indiana, and Wisconsin.
The holding company is named after the year the first Schnuck family member opened a retail store in St. Louis, 1939.
This acquisition is a different strategy for a grocer with a history of absorbing acquired stores into its own brand. Unlike the past purchases of St. Louis-centric chains National Supermarkets and Shop ‘n Save, 1939 Group says it will maintain the existing banners of all 51 Wisconsin stores.
These brands will continue to operate as separate sister companies to Schnucks and retain their corporate headquarters in Onalaska, Wisconsin, while sharing support from 1939 Group. This structure allows the Schnuck family to grow its footprint without removing locally familiar brands.
This brings the combined workforce to more than 19,000 employees.
Todd Schnuck, Chairman and CEO of Schnuck Markets, will also take on a new leadership role as Chairman and CEO of the newly-formed 1939 Group.
In a statement, Todd Schnuck emphasized the shared values of the two family-owned businesses. "With this combination, we’re welcoming more than 8,000 associates to our family, unifying two family legacies and redefining what it means to be a regional grocer," he wrote.
"It’s been a privilege to serve Wisconsin communities and continue the legacy my grandparents began in 1946," wrote Mark Skogen, the now-outgoing CEO of Festival Foods, adding, "With Schnucks’ shared commitment to nourishing lives, this transition will help expand our impact and continue our tradition of community support across the Midwest."
Closing is expected in October, pending regulatory reviews and approvals.
