Pamida Being Absorbed into Shopko
GDA Staff -- Gifts & Dec, January 31, 2012
GREEN BAY, WIS. AND OMAHA, NEB. - Another nameplate will disappear from the retail landscape as Shopko Stores merges Pamida into its operations, creating a $3 billion company with nearly 350 locations in 22 states.
The fate of Pamida's buying staff is uncertain. "We don't have all of the staffing piece figured out at this time," company spokesperson Tara Powers told HTT.
Most of Pamida's 193 stores will be converted to Shopko's Hometown format over the next year, a process that will cost about $80 million. The Hometown concept includes a home textiles department stocked with top of bed, sheets, blankets, throws, basic bedding, floor coverings, window treatments, kitchen and table linens, bath accessories and towels.
Pamida operations will no longer be headquartered in Omaha. The company operates stores in 17 states. Shopko president, chairman and ceo W. Paul Jones will oversee the operation. Pamida president and ceo John Harlow will stay on to help with the integration process.
In 1999, as a public company Shopko acquired Pamida and ran it as separate division, the latter's stores located in smaller, more rural Midwestern markets. Shopko was itself acquired by private equity firm Sun Capital Partners in 2005. The Pamida division was spun off from Shopko, but continued to be owned by Sun Capital.
"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," said Jones. "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."
Shopko stores will not be impacted by the changes, the company said. Once the Pamida conversions are complete, Shopko intends to ramp up openings of the Shopko Hometown format, which runs from 15,000 to 35,000 sq. ft. That process will begin later this year and extend into 2013. The company did not specify how many Hometown format stores it plans to open.
Shopko's current formats include 134 Shopko stores, 10 Hometown stores and five Shopko Express RX neighborhood drugstores. The combined company will retain the Shopko name and operate in the Midwest, North Central, Mountain and Pacific Northwest regions. No financial details were available.
Shopko generated approximately $94 millon in home textiles sales in 2010 and was the 35th largest home textiles retailer in the U.S. that year, according to HTT's annual Retail Giants report. The company does $2 billion in total annual business, according to the merger announcement.
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