BATESVILLE — Two of the nation’s leading Midwest-based general merchandise retail chains, Shopko Stores and Pamida, will merge to create one of the largest U.S. retailers focused on serving smaller and rural communities.
The combined entity will have nearly 350 locations in 22 states and plans for new store growth in the second half of 2012 and beyond. The merger was expected to close in mid-February.
With annual revenues of $2 billion, Green Bay, Wis.-based Shopko operates 149 stores in 13 states located throughout the Midwest, Mountain and Pacific Northwest regions. Omaha, Neb.-based Pamida operates 193 stores in 17 states, primarily in the Mountain, North Central and Midwest regions and has revenues of approximately $1 billion.
Both are highly complementary in terms of locations and communities served, as well as a shared focus on brand-name selection, personalized service, outstanding values every day, pharmacy services and strong community involvement.
The combined company, which will be headquartered in Green Bay, will use the Shopko name and be led by Paul Jones, Shopko president, chairman and chief executive officer. John Harlow, Pamida president and CEO, will serve on the leadership team and help direct the integration process. There will be no change to Shopko’s stores, and approximately $80 million will be invested over the next 12 months in the conversion of most locations.