The deal that combined Schnuck Markets, Skogen’s Festival Foods and Hometown Grocers under a newly formed holding company closed Monday.
The 1939 Group, Inc., named after the year that Schnucks was founded, is helmed by Todd Schnuck, Schnuck’s chairman and CEO and brings together three long-time Midwestern grocers, which it will run as sister companies.
“Schnucks, Skogen’s Festival Foods and Hometown Grocers share a strikingly similar set of core values, tracing our success to decades of consistently focusing on the communities we serve, the values we share and the ongoing quest for excellence in grocery retail,” Schnuck said in a statement when the deal was announced.
The deal expands the Schnuck family’s reach into Wisconsin, where The 1939 Group will run 51 stores. Skogen’s Festival Foods owns 42 stores in the state, while Hometown Grocers has nine, all of which are under different banner names.
The 1939 Group runs stores that span four Midwestern states
The new holding company oversees 164 stores, the bulk of which are Schnucks’ 113-store footprint across Missouri, Illinois, and Indiana.
Schnucks said in the Monday press release that having the three grocery chains under the holding company will help them “accelerate growth and set a new standard for what it means to be a regional grocer.”
The acquisition marks the latest merger between regional grocers as companies aim to expand their store footprints and improve their economies of scale. Last year, Hy-Vee acquired Strack & Van Til — a deal that extended Hy-Vee into Indiana. In 2021, Raley’s acquired Bashas and formed a new entity called The Raley’s Companies to manage the enterprise.
