WEST DES MOINES, Iowa — Hy-Vee here said Monday that it had purchased three stores from Sunshine Foods, one of its largest rivals in Sioux Falls, S.D.
The stores, two in Sioux Falls and one in Windom, Minn., will reopen as Hy-Vee stores after renovations, officials said. As part of the deal, Sunshine Foods said it would close an additional location in Sioux Falls, but would continue to operate its downtown Sioux Falls store and stores in nine rural communities.
The acquisition would help Hy-Vee boosts its market-leading share in the Sioux Falls metro area, where it held 39.9% share according to the 2010 Metro Market Studies guide. Rainbow Foods was the third-leading food retailer in the market after Hy-Vee and Wal-Mart Stores, Metro Market figures show.
Hy-Vee said it would take possession of the stores in September. The location on West 10th Street would close for approximately three months for an extensive renovation and open under the Hy-Vee banner early in 2011. The other Sioux Falls store is expected to reopen as a Hy-Vee in late September. The Windom store would replace a current Hy-Vee operating there.
