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The Business Journal reports that Roundy's will buy 11 of Safeway's Dominick's stores in Chicago, converting them to its Mariano's Fresh Market format. The deal will cost Roundy's $36 million in cash and lease assumptions. Safeway announce earlier this year that it would close and/or sell its Dominick's stores after years of losses.

Bob Mariano, chairman/president/CEO of Roundy's, said that in addition to the 11 Dominick's stores, his company also will build five new stores in Chicago, which will bring its presence there to 29 stores in total. Mariano has said that he expects to eventually have at least 45-50 stores in Chicago.

“We are excited about the opportunity to rapidly expand in the Chicago market,” Mariano said, noting that it will take two to three years to remodel the Dominick's units and bring them up to standards.

The Chicago Tribune writes that "Mariano started behind the deli counter at Dominick's as a high school student in 1968, working his way up to president of the chain. He left after Dominick’s was sold to Safeway in 1998, and started his eponymous chain with Roundy’s more than a decade later."
KC's View:
I think it is fair to say that the Dominick's customers who now will have access to Mariano's are getting an upgrade … because the Mariano's stores are some of the nicest stores out there. A lot of folks question whether they can possibly maintain the low price points they currently have, suggesting that it is playing a market share game at the moment. But the fact is, these are very nice stores.