Shopko
| Company type | Private (formerly public) |
|---|---|
| Industry | Retail (department store) |
| Founded | 1962 in Green Bay, Wisconsin, United States |
| Founder | James Ruben |
| Defunct | June 23, 2019 |
| Fate | Filed for Chapter 11 bankruptcy; retail operations discontinued; optical outlets sold and continue separately |
| Successor | Shopko Optical (optical division) |
| Headquarters | Green Bay, Wisconsin , United States |
Area served | United States (formerly) |
Key people | James Ruben (founder), William Tyrrell (former CEO), Dale Kramer (former CEO), William Podany (former CEO), Michael MacDonald (former CEO), W. Paul Jones (former CEO), Peter McMahon (former CEO) |
| Products | General merchandise, pharmacy, optical services |
| Owner | Sun Capital Partners (from 2005 until bankruptcy) |
Number of employees | Approximately 18,000 (2018) |
Shopko Stores, Inc. (branded as SHOPKO and formerly known as ShopKo) was a department store chain based in Green Bay, Wisconsin. The company discontinued its retail operations on June 23, 2019, with the exception of its Shopko Optical outlets, which continue to operate.
Established in 1962 by entrepreneur James Ruben under the name ShopKo Corporation, the inaugural store was launched in Green Bay. Between 1991 and 2005, Shopko was listed on the New York Stock Exchange with the ticker SKO. The company transitioned back to private ownership in 2005 following its acquisition by a Sun Capital Partners affiliate. That same year, Shopko introduced a smaller store concept called ShopKo Express. In 2007, the brand underwent a slight modification to become Shopko Stores Inc. featuring a lowercase "k".
In 1999, Shopko expanded by acquiring Pamida, a discount retailer focused on smaller markets. Pamida functioned as a distinct division until 2007 before spinning off as an independent entity. The two companies reunited in 2012, with most Pamida stores being rebranded as Shopko Hometown locations.
On January 16, 2019, Shopko filed for Chapter 11 bankruptcy protection. By March of that year, the company declared its intention to close all remaining stores by summer 2019, finalizing closures by June 23. At its height, Shopko reported revenues near US$3.3 billion for fiscal year 2018 and employed roughly 18,000 individuals.
1960s
In March 1961, Chicago-based pharmacist James Ruben and a group of investors formed a corporation to establish a $1 million department store in Green Bay, Wisconsin, initially named "Shopco". The first store opened in April 1962 under the name "ShopKo", with the corporate entity registered as ShopKo Corporation. ShopKo was among the pioneers in combining pharmacy and optical services within retail stores.
By 1966, the chain had added a second location called "ShopKo East" on Green Bay’s east side and continued expanding throughout Wisconsin. In September 1969, ShopKo made its entry into Michigan with a new store situated in Marquette.
1970s
In June 1970, ShopKo announced its corporate headquarters would be located in Ashwaubenon, Wisconsin, and adopted the name ShopKo Stores, Inc. A merger agreement with Minneapolis-based SuperValu was announced in January 1971 and finalized by April of that year. During this period, ShopKo opened its new headquarters and began incorporating pharmacies into its retail locations.
Founder James Ruben departed from ShopKo in September 1972 to assume the presidency of SuperValu; William Tyrrell took over as CEO. By 1977, ShopKo’s sales exceeded $100 million. Starting in 1978, select stores began featuring optical centers to broaden their service offerings.
1980s
Between 1983 and 1985, ShopKo expanded by acquiring former Copps Department Store sites throughout Wisconsin as Copps shifted focus to supermarkets and sought to reduce theft risks. In 1988, the company inaugurated a new corporate headquarters in Ashwaubenon near Bay Park Square Mall and achieved $1 billion in sales across 87 stores.
In February 1989, ShopKo collaborated with SuperValu to debut Twin Valu, a hypermarket concept located in Cuyahoga Falls, Ohio that combined ShopKo’s general merchandise with Cub Foods grocery selections.
1990s
By the year 1990, ShopKo had expanded to its 100th location, marking its initial entry into the California market. Midway through 1991, SuperValu revealed plans for ShopKo's initial public offering, with shares beginning trading at $15 each. That same year, Dale Kramer assumed the role of CEO.
Towards the end of 1991, ShopKo launched its "Vision 2000" prototype stores across multiple states, focusing on updating and revitalizing its retail concept. A construction mishap at the Sheboygan store resulted in a memorial honoring a stonemason who lost his life.
In 1996, ShopKo intended to merge with Phar-Mor but withdrew from the deal by 1997. During that year, ShopKo gained complete control by purchasing SuperValu’s remaining shares and became an early adopter among retailers to permanently cease tobacco product sales.
The company further expanded in 1998 by acquiring Venture Stores operating in Kentucky, Iowa, Missouri, Illinois, and Kansas.
William Podany took on the presidency in 1999 and oversaw the acquisition of 147 Pamida stores, which enhanced ShopKo's footprint in rural regions. Additionally, ShopKo launched ProVantage as a separate pharmaceutical entity publicly traded on the stock market.
At the close of 1999, ShopKo opened its "Beyond 2000" prototype store in Meridian, Idaho, advancing its merchandising approach beyond the earlier Vision 2000 concept.
2000s
In March 2000, ShopKo shares soared to an all-time high of $3.57, reflecting a 70% increase compared to the previous year. That year also saw the sale of ProVantage to Merck & Co. for approximately $222 million. Furthermore, ShopKo acquired P.M. Place Stores—a chain with 49 locations—for $22 million with plans to convert these into Pamida outlets.
At the start of 2001, ShopKo shuttered 23 stores along with a distribution center, resulting in a workforce reduction of 2,500 employees and withdrawal from Missouri, Indiana, Kansas, and Kentucky markets. CEO William Podany stepped down in April 2002; Jeffrey Girard served as interim CEO until Sam Duncan was appointed in October.
In 2005, ShopKo introduced "ShopKo Express," smaller-format stores designed to compete directly with Walgreens and CVS Pharmacy. Around this period, the company exited Colorado and closed its Reno outlets; some Colorado locations were acquired by JCPenney. Later that year, private equity firm Sun Capital Partners purchased ShopKo.
Michael MacDonald was named CEO in May 2006. The following year saw Pamida spin off from ShopKo while the company refreshed its brand identity by removing the capital "K" from its name and unveiling a new logo; however, ShopKo Express stores maintained the previous branding until late 2008.
In 2008, ShopKo Express expanded into urban markets with a store opening in Green Bay that closed within twelve months. During this time frame, ShopKo increasingly became an anchor tenant in shopping centers located in areas such as Suamico, Wisconsin and North Branch, Minnesota.
In April 2009, MacDonald resigned as CEO to join DSW, Inc., with W. Paul Jones stepping into the leadership role. By late 2009, ShopKo launched an e-commerce platform to strengthen its online retail capabilities.
2010s
In May 2010, Shopko outsourced its information technology operations to HCL Technologies based in Chennai, India.
That summer marked the debut of two "Shopko Hometown" stores created by converting existing Pamida locations. By 2011, the company emphasized growth within its Hometown division by opening nine new outlets while closing several standard stores to focus on smaller community markets.
In 2012, Shopko merged fully with Pamida and rebranded all former Pamida stores as Shopko Hometown at an estimated renovation expense of $80 million. Later that year saw CEO W. Paul Jones resigning and Mike Bettiga stepping in as interim CEO.
Peter McMahon took over as CEO in 2013. Amid bankruptcy proceedings in 2015, Shopko acquired twenty ALCO Stores locations intending to convert them into Hometown stores and introduced the tagline "The Stuff that Counts."
Towards the end of 2016, four underperforming stores were closed while a new location opened in Ely, Nevada. That November also marked the launch of Shopko’s first private label credit card.
Between late 2016 and early 2017, larger Shopko stores underwent renovations to incorporate select grocery items such as frozen pizzas and dairy products with the goal of broadening product variety and improving customer experience.
Chapter 11 Bankruptcy and Liquidation
On December 4, 2018, Shopko revealed plans to shut down 39 of its stores. The following day, Bloomberg reported that Sun Capital had been unsuccessful in securing a buyer, increasing the likelihood of a Chapter 11 bankruptcy filing. During December 2018, Shopko began winding down its pharmacy operations, transferring patient records to competitors such as Walgreens, CVS, Hy-Vee, and Kroger. On January 8, 2019, McKesson initiated legal action against Shopko, seeking $67 million in outstanding payments. Industry observers anticipated Shopko would file for bankruptcy protection by mid-January.
On January 16, 2019, Shopko officially filed for Chapter 11 bankruptcy in a Nebraska court, citing intense market competition and liabilities estimated up to $10 billion against assets valued below $1 billion. The company simultaneously announced the closure of 105 stores, including its original Military Avenue site in Green Bay.
By February 7, 2019, Shopko confirmed plans to close a total of 251 stores—approximately 70% of its entire portfolio—between March and May. This included shutting down 77 Shopko-branded locations, 165 Hometown Values outlets, both standalone pharmacies, and all seven Express stores. The company also withdrew from several states such as California, Colorado, Indiana, Kansas, Kentucky, Nevada, New Mexico, Ohio, Oklahoma, Oregon, Texas, Utah, and Washington.
After failing to find a buyer by March 18, 2019, Shopko announced it would close all remaining stores while continuing liquidation sales through the summer months. Although severance agreements were established in April 2019, only certain states fulfilled employee payment obligations. Monarch Alternative Capital LP purchased Shopko’s optical division for $8.5 million; these optical centers remained operational within closed stores until relocating to smaller standalone sites.
Several former Shopko properties have since been repurposed for new uses. Former Hometown locations in St. Peter and New Prague, Minnesota were converted into Hy-Vee grocery stores. A Mankato site was redeveloped into a mixed-use facility featuring a restaurant and an indoor ice rink that opened in 2023. Additionally, Hy-Vee acquired multiple former Shopko locations for its Dollar Fresh Market chain.
This stage marked the conclusion of Shopko’s retail presence and underscored the difficulties of maintaining market share amid fierce competition and financial challenges. The company’s liquidation serves as a significant example of strategic and market adaptation hurdles within the retail sector.
Shopko
At its height, Shopko operated 363 stores spanning 24 states including California, Iowa, Illinois, Michigan, Minnesota, Ohio, Washington, and Wisconsin. The retailer focused on serving small to mid-sized communities with locations situated in strip malls, shopping centers, power centers, or as standalone buildings. Additionally, Shopko collaborated with Green Bay-based Bellin Health to offer walk-in clinics inside stores under the FastCare brand name to expand healthcare services.
Shopko’s advertising evolved over time through various slogans that highlighted its value proposition and customer orientation. The final slogan used from 2015 until closure in 2019 was "The Stuff that Counts." Its pharmacy segment operated under the Shopko Express brand with the tagline "Every day. On your way."
Notably, Shopko was the namesake sponsor of the exhibition hall at the Brown County Veterans Memorial Arena/Resch Center complex—known as Shopko Hall—which closed and was replaced by the new Resch Expo facility in 2019.
Shopko Express
Shopko Express functioned as the pharmacy division of Shopko, featuring a tailored assortment of general merchandise, groceries, alcoholic beverages, health and beauty items, over-the-counter drugs, and lottery tickets. This format enhanced the parent company’s retail presence by emphasizing convenience and pharmacy offerings within its operational approach.
Shopko Hometown
In 2012, Shopko acquired Pamida, transforming all former Pamida outlets into Shopko Hometown stores aimed at smaller communities ranging from 3,000 to 8,000 inhabitants. These locations stocked approximately 70% of the inventory found in larger Shopko stores. The initial two stores launched in 2010 in Oconto, Wisconsin and Kewaunee, Wisconsin. The division grew further in 2015 when Shopko purchased 20 former bankrupt ALCO Stores locations and converted them into Shopko Hometown outlets.
Payless ShoeSource
Starting in 1999, Shopko entered a leasing agreement with Payless ShoeSource, providing retail space to the footwear chain accompanied by prominent signage, replacing the earlier contract with J. Baker, Inc.. This transition was completed by mid-2000. Payless ShoeSource filed for bankruptcy again in February 2019 and closed its stores simultaneously with Shopko’s closures.
Private-label brands
Shopko developed a variety of private-label product lines, mainly focusing on apparel and general merchandise to strengthen its market position. Notable brands included Shopko, Willow Bay, Bailey's Point, NorthCrest, Energy Zone, Soft Sensations, Peanut & Ollie, and Green Soda. These exclusive labels contributed to Shopko’s competitive edge by offering unique products tailored to its customer base.
Acquisitions
- Shopko
- Copps Department Store (An early superstore concept combining grocery and general merchandise; post-1983 many locations were converted to ShopKo or other retailers such as Kmart, Prange Way, and Menards.)
- Penn-Daniels/Jack's
- Venture (majority of stores acquired; only the former Dubuque, Iowa location remained open until Shopko’s closure.)
- Parade Stores
- PayLess Discount Stores
- Former Kmart location in Wenatchee, Washington
- Shopko Hometown
- Pamida
- ALCO
- P.M. Place/Place's
Distribution
Shopko’s logistics and transportation operations were overseen by Spectrum America Supply Chain Solutions, a subsidiary of Metro Supply Chain Group founded in 2016. Distribution centers were located in De Pere, Wisconsin, Omaha, Nebraska, Quincy, Illinois, and Boise, Idaho.
See also
External links
- Official website (currently dedicated to Shopko Optical only)
- Articles with short description
- 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
- 5
- Companies of the United States by year of establishment