Schnucks is taking a major expansion move with the owner, Todd Schnuck, announcing acquisition of 51 stores with the purchase of Wisconsin-based grocery chains Skogen’s Festival Foods and Hometown Grocers.
Upon the closing of the deal, Schnuck will be chairman and CEO of the new 1939 Group, which will own all three brands.
The 1939 Group, named after the year Schnucks was founded, will be the parent company but will allow the three grocery chains to function as distinct businesses. Schnucks and the new 1939 Group will still be headquartered in St. Louis, while Festival Foods and Hometown Grocers will have their respective headquarters remain in Onalaska and Green Bay, Wisconsin.
In the official announcement, Todd Schnuck emphasized the shared values among the three grocers, stating that each chain has built its reputation on community service, family values, and a dedication to excellence in grocery retail. “With this combination, we’re welcoming more than 8,000 associates to our family, unifying two family legacies and redefining what it means to be a regional grocer,” Schnuck said.
Former Festival Foods and Hometown Grocers CEO Mark Skogen was upbeat about the change, saying the acquisition would strengthen both Wisconsin chains while keeping them localized. Together, the entire staff under the 1939 Group umbrella will have almost 19,000 employees. The deal is expected to close in October, pending regulatory approval.
This transaction is one in a trend of local food chains combining forces to stay relevant and increase economies of scale. Previous years saw some of the largest mergers in the industry reshape the grocery environment. Hy-Vee’s acquisition of Strack & Van Til drove the company’s expansion into Indiana last year, and Raley’s purchase of Bashas’ in Arizona in 2021 created a new business entity. Price Chopper/Market 32 and Tops Markets combined in 2021, bringing together two veteran chains under one roof.
For Schnucks, with an existing dominance in the Midwest, the deal offers an opportunity to extend its reach into Wisconsin while striking a balance between expansion and local identity. The decision to retain Festival Foods’ and Hometown Grocers’ names, management systems, and down-to-earth presence is an indication that the company’s approach is inclined towards integration but not compromising loyalty among its customers.
With grocery competition on the rise as national and regional players seek expansion, this growth by Schnucks is evidence of a sustained expansion focus through partnership and legacy preservation. For Wisconsin shoppers and beyond, it means continued access to familiar stores backed by the security of a larger, family-owned parent company.
The formation of the 1939 Group highlights not just a corporate merger, but the union of family legacies in the supermarket trade. As a result of its alliance with Festival Foods and Hometown Grocers, Schnucks is resolutely positioning itself as a stronger regional player that will be able to adapt as retailing continues to evolve.
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