Cub Foods, the Twin Cities' largest grocery chain, opened its newest store last week with a bit of mystery in the air.
Since its parent company, Supervalu Inc., was sold last year, its new owner has focused on that firm's main business as a grocery wholesaler. Cub, along with Supervalu's other retail chains, were put on the block, but no buyer has emerged.
As Mike Stigers, Cub's new chief executive, welcomed customers to its new store near Minnehaha Park in south Minneapolis, he said the company won't let the sale process get in the way of its plans to update stores and improve offerings.
"We're looking at which stores are going to get remodeled next fiscal year," Stigers said. "There's no slowing down the growth of this brand as we look for the correct suitor in the future."
Stigers said Supervalu's new owner — United Natural Foods Inc. (UNFI), a wholesaler that specializes in organic products and counts Whole Foods as a key customer — still hopes to sell the 79-unit Cub chain in one deal.
"The strength of Cub as a strong regional brand is its totality," he said. He declined to comment about potential suitors but said no deal is imminent.
"We're 100% focused on running Cub Foods," he said. "When the timing is right, we'll be able to move forward."
Hy-Vee CEO Randy Edeker said last year that he's not interested in acquiring the Cub stores. Kroger, known for buying regional grocery brands such as Roundy's, continues to struggle financially and may no longer be in acquisition mode.
