Jacks Discount Stores
| Company type | Public (1991–2005), Private (2005–2019) |
|---|---|
| Industry | Retail (Department store) |
| Founded | April 1, 1962 in Green Bay, Wisconsin, U.S. |
| Founder | James Ruben |
| Defunct | June 23, 2019 |
| Fate | Bankruptcy and liquidation; stores closed except Shopko Optical locations |
| Headquarters | Green Bay , United States |
Area served | United States |
Key people | James Ruben (founder), William Tyrrell, Dale Kramer, William Podany, Jeffrey Girard, Sam Duncan, Michael MacDonald, W. Paul Jones, Mike Bettiga, Peter McMahon |
| Products | Department store merchandise including pharmacy and eye care services |
Number of employees | Not specified |
Overview
Shopko Stores, Inc.—often presented as SHOPKO and previously known as ShopKo—was a department store chain headquartered in Green Bay, Wisconsin. While all retail outlets were shuttered on June 23, 2019, the Shopko Optical locations remain operational.
Established in 1962 by James Ruben under the name ShopKo Corporation (notably with a capital "K"), the company launched its inaugural store in Green Bay that same year.
Between 1991 and 2005, Shopko was publicly traded on the New York Stock Exchange under the ticker symbol SKO. In December 2005, ownership transferred to a Sun Capital Partners affiliate, returning the company to private status. That year also marked the introduction of smaller-format stores branded as ShopKo Express. In June 2007, the company updated its corporate name to Shopko Stores Inc. with a lowercase "k".
In 1999, Shopko acquired Pamida, a discount retailer focused on smaller markets with populations ranging from 3,000 to 8,000 residents. Pamida operated as a distinct division until 2007, when it was spun off into an independent entity. The two companies reunited in 2012, after which most Pamida outlets were converted to the Shopko Hometown brand.
On January 16, 2019, Shopko filed for Chapter 11 bankruptcy protection. Subsequently, on March 18, 2019, the company declared plans to shut down all stores by summer of that year. The final day of business for all Shopko locations was June 23, 2019.
1960s
In March 1961, James Ruben, a pharmacist from Chicago, along with several investors, revealed plans to establish a corporation aimed at launching a $1 million (Template:Inflation) department store in Green Bay, Wisconsin, initially named "Shopco".
By April 1962, the store commenced operations at 216 S. Military Avenue. During this period, the brand name was updated to "ShopKo", and the entity was officially incorporated as "ShopKo Corporation". This retailer was among the pioneers in integrating services such as a pharmacy and an eye care center within its premises.
In 1966, ShopKo expanded by inaugurating a second outlet called "ShopKo East" on Main Street, situated on Green Bay's east side. Over the next few years, additional locations were launched throughout Wisconsin.
September 1969 marked ShopKo's entry into the Michigan market with the opening of its first store in Marquette.
1970s
June 1970 saw Ruben announce intentions to establish corporate headquarters on Ashland Avenue in Ashwaubenon, Wisconsin. That same month, the company underwent a rebranding to become "ShopKo Stores, Inc."
In January 1971, plans were revealed for a merger with Minneapolis-based SuperValu. By April of that year, the merger was finalized. Concurrently, the new headquarters in Ashwaubenon opened its doors.
August 1971 brought announcements regarding the introduction of pharmacies within ShopKo stores.
The following year, in September 1972, James Ruben departed from ShopKo to assume the presidency of SuperValu; William Tyrrell succeeded him as head of ShopKo.
By 1977, ShopKo's annual sales surpassed $100 million. Starting in 1978, select stores began incorporating optical centers as part of their service offerings.
1980s
Between 1983 and 1985, ShopKo expanded by opening several new stores in locations that were formerly Copps Department Store outlets, including sites in Fond du Lac, Wisconsin and Fort Atkinson, Wisconsin. This move coincided with Copps shifting its focus towards grocery operations and reducing vulnerability to shoplifting. In 1988, the company established a new corporate headquarters in Ashwaubenon near the Bay Park Square Mall. That same year, ShopKo achieved $1 billion in sales, driven by the operation of 87 stores.
In February 1989, ShopKo partnered with SuperValu to launch Twin Valu, a hypermarket concept located in Cuyahoga Falls, Ohio. This format combined ShopKo’s general merchandise offerings with the grocery selection provided by Cub Foods.
1990s
By 1990, ShopKo had reached a milestone of opening its 100th store, marking its initial entry into the California market.
Midway through 1991, SuperValu announced plans for ShopKo to become publicly traded. The company’s shares debuted at $15 per share (approximately equivalent to $Template:Inflation adjusted for inflation). That year also saw Dale Kramer assume leadership of the company.
Towards the end of 1991, ShopKo unveiled its "Vision 2000" prototype store concept. New locations featuring this model opened in cities including Sheboygan, Wisconsin, Duluth, Minnesota, Dixon, Illinois, Loveland, Colorado, Longmont, Colorado, and Lacey, Washington. Additionally, stores were relocated in Marshall, Minnesota and Mitchell, South Dakota. The Sheboygan store’s construction was marred by a tragic accident when an exterior wall collapsed, resulting in the death of a stonemason; a memorial stone and flagpole were installed overlooking the valley in his memory.
In 1996, ShopKo announced intentions to merge with the Ohio-based chain Phar-Mor, although these plans were subsequently abandoned.
The following year, in 1997, Phar-Mor separated from ShopKo. Concurrently, ShopKo acquired full ownership by purchasing all outstanding SuperValu shares. Notably, ShopKo became one of the earliest retailers nationwide to permanently discontinue tobacco product sales within that same year.
In 1998, ShopKo expanded through acquisition by purchasing Venture Stores locations across Kentucky, Iowa, Missouri, Illinois, and Kansas.
William Podany was appointed President of ShopKo in 1999. Later that year, under his leadership, ShopKo acquired 147 stores from the rural merchandiser Pamida. Additionally, ShopKo launched ProVantage—a pharmaceutical spin-off company—on the stock market.
Near the end of 1999, ShopKo introduced its "Beyond 2000" prototype store in Meridian, Idaho, reflecting a new merchandising strategy that succeeded the earlier Vision 2000 approach from the early ’90s.
2000s
In March 2000, ShopKo's stock reached an all-time high of $3.57 per share, marking a 70% increase compared to the previous year. Later that same year, the company revealed plans to sell ProVantage to Merck & Co. for approximately $222 million. In May 2000, ShopKo agreed to acquire P.M. Place Stores, a chain consisting of 49 outlets, for $22 million (adjusted for inflation), with intentions to rebrand these locations as Pamidas.
At the beginning of 2001, ShopKo announced the closure of 23 stores along with a distribution center, resulting in the elimination of 2,500 positions and withdrawal from the markets in Missouri, Indiana, Kansas, and Kentucky.
In April 2002, CEO William Podany stepped down from his role, with Jeffrey Girard appointed as interim CEO. Sam Duncan succeeded Girard in October of that year, assuming the position permanently.
By 2005, ShopKo launched its initial "ShopKo Express" stores—smaller formats designed to compete with retailers like Walgreens and CVS Pharmacy. Around this period, the company exited the Colorado market and shuttered its locations in Reno, Nevada, some of which were acquired by JCPenney.
Later in 2005, ownership of ShopKo transferred to Sun Capital Partners. In May 2006, Michael MacDonald was named CEO.
The year 2007 saw Pamida being spun off from ShopKo as an independent entity. That same year, ShopKo underwent rebranding by eliminating the capital "K" from its name and unveiling a new logo; however, the ShopKo Express outlets continued using the original branding until autumn 2008.
In 2008, ShopKo Express expanded into urban areas with a new store in Green Bay, Wisconsin, though this location was closed within a year.
Towards the end of the decade, ShopKo became a primary tenant in several shopping centers, including those located in Suamico, Wisconsin and North Branch, Minnesota.
In April 2009, Michael MacDonald resigned as CEO to lead DSW, Inc., and W. Paul Jones assumed the CEO position at ShopKo.
By late 2009, ShopKo introduced an online shopping platform to extend its retail presence digitally.
2010s
In May 2010, Shopko delegated its information technology operations to HCL Technologies, headquartered in Chennai, India.
During the summer of 2010, Shopko launched its initial pair of "Shopko Hometown" outlets, which were conversions from existing Pamida stores.
By 2011, Shopko intensified its focus on the Hometown brand by inaugurating nine additional locations while simultaneously closing some standard stores to prioritize the Hometown format.
A decade after its separation from Shopko, Pamida reunited with the company in 2012; all Pamida outlets were rebranded under the Shopko Hometown banner. The renovation efforts were projected to cost approximately $80 million.
Later that year, W. Paul Jones stepped down as CEO, with Mike Bettiga appointed as interim chief executive officer.
In 2013, Peter McMahon assumed the role of Shopko's new CEO.
Following a bankruptcy filing in 2015, Shopko acquired 20 former ALCO Stores sites, intending to convert them into Hometown stores. Concurrently, the company adopted a new slogan: "The Stuff that Counts."
Towards the end of 2016, Shopko shuttered four underperforming stores due to declining sales but also opened a new location in Ely, Nevada.
November 2016 marked the introduction of Shopko's inaugural credit card.
Between late 2016 and early 2017, the company revamped its larger retail formats to incorporate grocery sections featuring limited selections of frozen and perishable items, primarily frozen pizzas and dairy products.
Chapter 11 Bankruptcy and Liquidation
On December 4, 2018, Shopko announced the shutdown of 39 of its stores. The next day, Bloomberg reported that Sun Capital had been unsuccessful in securing a buyer for Shopko, and the private equity firm was increasingly anticipating a Chapter 11 bankruptcy filing.
In December 2018, Shopko started closing its pharmacy operations and transferred patient records to local competitors such as Walgreens, CVS, Hy-Vee, and Kroger. On January 8, 2019, McKesson Corporation initiated legal action against Shopko, demanding $67 million in overdue payments. Reports suggested that Shopko might file for bankruptcy as soon as January 15. Indeed, on January 16, 2019, Shopko filed for Chapter 11 protection in Nebraska court, citing fierce competition and reporting assets under $1 billion against liabilities nearing $10 billion. Concurrently, the company declared plans to close an additional 105 stores out of its total 363 locations, including its original Military Avenue store in Green Bay.
By February 7, 2019, Shopko confirmed it would shut down 251 stores—approximately 70 percent of its outlets—in a phased closure scheduled between March 2 and May 12, 2019. This list encompassed 77 Shopko-branded stores, 165 Hometown Values locations, both standalone pharmacies, and all seven Express stores. As a result, Shopko exited multiple states including California, Colorado, Indiana, Kansas, Kentucky, Nevada, New Mexico, Ohio, Oklahoma, Oregon, Texas, Utah, and Washington.
On March 18, 2019, after failing to find a buyer for the entire chain, Shopko announced it would close all remaining stores. Liquidation sales proceeded throughout the summer months.
In late April 2019, Shopko informed employees that although severance pay agreements had been signed, payout would be limited to certain states only. During this period, Monarch Alternative Capital LP acquired Shopko’s optical division for $8.5 million. The optical centers continued operating within the closed store locations until smaller standalone sites could be established.
Several former Shopko properties have since been repurposed. For example, the former Hometown stores in St. Peter and New Prague, Minnesota were converted into Hy-Vee supermarkets. Additionally, a former Shopko location in Mankato was redeveloped into a mixed-use facility featuring a restaurant, indoor ice rink, and event center that opened in 2023. Multiple other former sites were purchased by Hy-Vee and transformed into Dollar Fresh Market outlets.
Shopko
At the time of its closure, Shopko managed 363 outlets spanning 24 states, including but not limited to California, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, Wisconsin, and Wyoming. The majority of Shopko locations were situated in small to medium-sized towns. These stores commonly occupied spaces within strip malls, enclosed shopping malls, large retail complexes known as power centers, or operated as standalone buildings. Additionally, Shopko collaborated with Green Bay-based healthcare provider Bellin Health and other regional medical centers to offer FastCare walk-in clinics inside select stores.
Over the years, Shopko adopted various marketing slogans such as "Say hello to a good buy at ShopKo," "ShopKo discounts the price...not the quality," "We won't be undersold," "ShopKo: Discover for Yourself," "ShopKo - The Store for You," "ShopKo - Your Lifestyle, Your Pricestyle," "Shopko - Neat stuff, neat store," and "My life...my style...my store." The final tagline used from 2015 until the company's closure in 2019 was "The Stuff that Counts." For its pharmacy brand Shopko Express, the slogan was "Every day. On your way."Template:Fix/category[citation needed]
During the 1980s and 1990s, Karen McDiarmid served as Shopko's official spokesperson.
Shopko held naming rights for the exhibition hall section of the Brown County Veterans Memorial Arena/Resch Center complex, known as Shopko Hall.[1] Independent of Shopko's bankruptcy proceedings, Shopko Hall closed on April 28, 2019 alongside the BCVMA venue and was subsequently demolished. It was replaced by a new facility named the Resch Expo.[2]
Shopko Express
Shopko Express (stylized as Template:Proper name) was a pharmacy chain under the Shopko brand. These outlets offered a limited range of general merchandise alongside groceries, alcoholic beverages such as beer and wine, personal care items, and non-prescription medications. Additionally, Shopko Express locations sold lottery tickets.
Shopko Hometown
In 2012, Shopko took over Pamida and rebranded all former Pamida outlets as Shopko Hometown stores. These stores targeted smaller population centers, typically between 3,000 and 8,000 residents. They stocked roughly 70% of the merchandise found in Shopko's standard larger stores. The initial two Shopko Hometown locations launched in 2010 in Oconto, Wisconsin and Kewaunee, Wisconsin, utilizing remodeled former Pamida facilities. In 2015, Shopko expanded this format by acquiring 20 sites from the defunct ALCO Stores chain, converting them into Shopko Hometown outlets.
Payless ShoeSource
In 1999, Shopko entered into an agreement with Payless ShoeSource to lease retail space within Shopko stores to the shoe retailer, featuring prominent storefront signage. This arrangement replaced the prior contract with J. Baker, Inc., which had managed the discount footwear department. The transition was finalized by late June 2000. Following Payless ShoeSource’s second bankruptcy filing in February 2019, it closed its stores concurrently with Shopko’s own shutdowns.
Private-label brands
Shopko offered a variety of private-label brands primarily focused on apparel and general merchandise categories. Notable store brands included Shopko, Willow Bay, Bailey's Point, NorthCrest, Energy Zone, Soft Sensations, Peanut & Ollie, and Green Soda.
Acquisitions
- Shopko
- Copps Department Store (Originally, Copps Department Stores pioneered the modern superstore model by offering both groceries and general merchandise. When the Stevens Point, Wisconsin-based Copps shifted its focus exclusively to grocery sales through Copps Food Center in 1983, numerous former Copps Department Store locations were transformed into ShopKo outlets, alongside other competitors such as Prange Way, Kmart, Woolco, and Wisconsin's own home improvement chain, Menards.)
- Penn-Daniels/Jack's
- Venture (the majority of stores; at the time Shopko ceased operations, only the former Dubuque, Iowa store remained open.)
- Parade Stores
- PayLess Discount Stores
- The ex-Kmart location in Wenatchee, Washington.
- Shopko Hometown
- Pamida
- ALCO
- P.M. Place/Place's
Distribution
Spectrum America Supply Chain Solutions, a subsidiary formed under Metro Supply Chain group in 2016, handled Shopko’s logistics and transportation operations. The company maintained distribution hubs in De Pere, Wisconsin, Omaha, Nebraska, Quincy, Illinois, and Boise, Idaho.
See also
References
- ↑ "Technical Information" (PDF). Expoandeventgreenbay.com. Archived from the original (PDF) on October 6, 2016. Retrieved June 2, 2019.
- ↑ Bollier, Jeff (March 11, 2019). "First look at the planned $93 million Brown County Expo Center". Green Bay Press-Gazette. Retrieved November 24, 2024.
External links
- Official website (currently dedicated to Shopko Optical only)
- Companies based in Green Bay, Wisconsin
- Economy of the Midwestern United States
- Economy of the Northwestern United States
- Defunct discount stores of the United States
- Defunct companies based in Wisconsin
- American companies established in 1962
- Retail companies established in 1962
- Retail companies disestablished in 2019
- American companies disestablished in 2019
- Private equity portfolio companies
- 1962 establishments in Wisconsin
- 2019 disestablishments in Wisconsin
- Health care companies based in Wisconsin
- Companies that filed for Chapter 11 bankruptcy in 2019
- 2005 mergers and acquisitions