Shopko, Pamida to Merge

GREEN BAY, Wis. — Retailers Shopko Stores here and Pamida, based in Omaha, Neb., have agreed to merge, the two companies said Wednesday.

Terms of the agreement between the two privately owned companies were not disclosed. It is expected to close in mid-February.

The combined chain will operate nearly 350 locations in 22 states. Shopko operates 149 stores  and has annual revenues of about $2 billion, and Pamida operates 193 stores in 17 states with revenues of about $1 billion. The combined company would use the Shopko name and would be based in Green Bay.

"Merging Pamida and Shopko is a great move for our businesses and our customers given our complementary strengths, store networks and consumer-centric retail models," said W. Paul Jones, chairman, president and chief executive officer, Shopko, in a statement. "The Shopko Hometown store format, featuring our unique merchandising strategy and improved store design, is an ideal fit for the smaller communities that Pamida serves with its exceptional service and community-minded approach. We intend to be the leader in this category by combining the best of Shopko and Pamida in our aggressive new store growth plans."

Jones would run the combined chains, and Pamida President and CEO John Harlow would serve on the leadership team and help direct the integration process, the companies said.

Shopko said it would invest about $80 million during the next 12 months to convert most of Pamida's locations to the Shopko Hometown store concept and brand.