Dominick’s was a Chicago-area grocery store chain and subsidiary of Safeway Inc. Dominick’s distribution center was located in Northlake, Illinois, while its management offices were located in Oak Brook, Illinois. Contents 1 History
Dominick’s, an iconic Chicago grocery chain that dates back to 1918, called it quits late Thursday. Dominick’s parent, Pleasanton, Calif.-based Safeway Inc. (NYSE: SWY), said it would attempt to quickly sell the existing 72 Dominick’s stores and shut down any that aren’t sold by early 2104.
The owner of Dominick’s Finer Foods announced Thursday the company plans to leave Chicago by early next year. Safeway Inc., which operates 72 Dominick’s stores in the Chicago market, said in its Third Quarter 2013 report that the move comes after poor performance from locations in the area.
1968: The Dominick’s chain is sold to Fisher Foods Inc. 1981: The Di Matteo family reacquires the chain. 1995: Yucaipa Cos. buys the company. 1998: Safeway Inc. acquires the chain.
A subsidiary of Safeway Inc., Dominick’s Finer Foods, Inc. is Chicago’s second-largest supermarket operation, trailing only the Jewel chain. Most of the company’s 116 outlets combine food stores and drugstores, many under the Dominick’s Fresh Store banner, which offers in-store cafés, floral departments, and expanded produce sections.
In the 1990s, Dominick’s took the “food and drug” combo to the next level with the introduction of the Dominick’s Fresh Store in 1993.
For Dominick’s, the switch is likely to further increase profit margin. The renovated “fresh stores,” introduced in 1994 with trendy food products and a wider selection of produce, have been extremely popular with customers.
How many stores did Dominick’s acquire?
Under Fisher, Dominick’s acquired 24 stores plus a 462,000-square-foot distribution center in Northlake from Kroger in two separate transactions in 1970. The new acquisitions from Kroger increased the number of stores to 45.
Over time, Dominick’s closed stores due to lack of sales and overall poor performance. In 2011, three locations were closed in Orland Park, Oak Lawn, and Carpentersville. In 2012, stores were closed in Hoffman Estates, Vernon Hills, Lake Bluff and Bloomingdale. Most employees were either transferred to different stores or offered a severance package .
In 1993, Dominick DiMatteo, Jr. died from lung cancer. According to the local press, his daughters and son did not have the same passion for the supermarket business. There was corporate infighting that also contributed to the family selling the chain. It took three years before the company was sold to a Los Angeles -based grocery investment firm headed by Yucaipa Companies.
By the 1980s, the family had become unhappy with the agreement and bought back the chain in 1981 for $100 million. The DiMatteos continued to expand and had acquired 4 stores from Kohl’s and 16 stores from Eagle in 1982 and 1985 respectively.
Dominick’s was one of the first to experiment with all ceiling sales areas, exposed structural elements such as piping and HVAC ducts, large-scale state-of-the-art telephone systems and POS systems, video departments, one-hour photo, bulk foods, and many other “new” 1980s concepts.
In 1998 , the chain’s then 116 stores were acquired by Safeway Inc. Safeway soon began to sell its own private-label brands at Dominick’s locations, replacing Dominick’s former private-label brands.
Dominick’s was a Chicago-area grocery store chain and subsidiary of Safeway Inc.. Dominick’s distribution center was located in Northlake, Illinois, while its management offices were located in Oak Brook, Illinois.
How many Dominick’s stores were there in Chicago?
At the time of James di Matteo’s death, Dominick’s, with an estimated 26 percent share of the Chicago market, operated 86 Dominick’s stores and 16 Omni Superstores, altogether generating around $2 billion in annual sales.
Dominick’s Established in 1918. The roots of Dominick’s reach back to 1909 when Sicilian-born Dominick di Matteo immigrated to America, settling in Chicago. In 1918, he established a small deli, squeezed into a 20-by-50 foot location on Chicago’s west side. In that same year, Dominick di Matteo, Jr. was born.
It is a positioning that is basically identical to the one expressed by the legendary ‘Mr. D,’ Dominick Di Matteo, in 1918 in his 20×50 foot deli: ‘Dominick’s belongs to the customers.’. Key Dates: 1918: Dominick di Matteo opens his first store. 1934: A second store is opened.
In fiscal 1996, Dominick’s opened eight Fresh Store outlets, followed by another 15 the following year. The Omni warehouse format, on the other hand, had fallen out of favor with consumers, and management opted not to open any news units.
In 2002, Dominick’s faced new difficulties, this time from a labor negotiation. Management insisted the leaders of the United Food and Commercial Workers union, representing nearly 9,000 Dominick’s employees, accept a cut in wages, putting them in line with non-union Jewel, as well as sharing costs in health care.
The firm’s first deal came in 1987 when it acquired the Kansas-based Falley’s chain. A series of other acquisitions followed, all with a similar pattern: the deals were highly leveraged, with Yucaipa contributing a modest amount of the funds and taking back a portion in cash fees.
In 1950 , the Di Matteos opened their first supermarket. The facility was 14,000 square feet in size and inaugurated the rise of a major Chicago-area chain of large format stores. It was also one of the first of the new supermarkets to introduce in-store delicatessens and a frozen foods section.
How much did Dominick’s lose in 2013?
Dominick’s incurred losses before income taxes of $13.7 million in the third quarter of 2013 and $35.2 million in the first 36 weeks of 2013, the company said. Company officials said four stores have been sold to New Albertsons, Inc., which operates Jewel-Osco grocery stores.
The announcement comes on the same week that Mariano’s opens its new store in the South Loop. Bob Mariano, who runs the Mariano’s Fresh Markets, started at the Dominicks deli counter as a high school student. Many years later he became president of the chain. He left when Safeway bought the chain.
Done. All 72 Chicago area grocery stores closing in 2014. The owner of Dominick’s Finer Foods announced Thursday the company plans to leave Chicago by early next year. Safeway Inc., which operates 72 Dominick’s stores in the Chicago market, said in its Third Quarter 2013 report that the move comes after poor performance from locations in the area.
Officials say during the transition period, the stores will continue to operate under the Dominick’s banner until Jewel-Osco can complete their conversion to Jewel-Osco stores. As many current employees as possible will be transitioned into the new Jewel stores, officials said.
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