Development

FOR REAL: Gordy’s Taking Over Mega’s Grocery Stores, While Mega Takes on Gordy’s Gas Business

Tom Giffey |

Sharks vs. Jets. Capulets vs. Montagues. Mega Co-op vs. Gordy’s Market. OK, so maybe that last rivalry isn’t as heated as the first two, but the two local grocery giants have been longtime competitors for the Chippewa Valley’s shopping dollar. However, that competition will soon be no more: Gordy’s County Market and Mega Co-op announced Tuesday that they have reached a collaborative agreement under which all Mega grocery stores will become Gordy’s Markets and all Gordy’s Express convenience stores will become Mega Holiday stations. When the deal closes in late February, “Gordy’s will own and operate 24 grocery stories and Mega Co-op will own and operate 33 convenience stores and fuel centers,” the two companies said in a press release.

When the deal closes in late February, “Gordy’s will own and operate 24 grocery stories and Mega Co-op will own and operate 33 convenience stores and fuel centers,” the two companies said in a press release.

Of all the Gordy’s and Mega locations, only one will close as part of the deal: Mega Co-op East, 1201 S. Hastings Way, which moved into a brand-new building back in 2012. (There’s no word yet on what will happen to the building.) Together, the two companies employ about 2,500 people in western Wisconsin, and the firms say “they are working hard to minimize any job losses.” While the two companies will remain independent, they plan on collaborating on loyalty programs, such as Pump Perks and the Gas Rewards Program.

“This is an exciting opportunity and a true win-win for both organizations,” said David Schafer, chief financial officer of Gordy’s County Market, “This transaction will allow two strong, locally owned companies to bring enhanced value to our customers throughout western Wisconsin.” Added Mega Co-op President Mike Buck, “Both companies will be bigger and stronger as a result of this agreement. This helps ensure a positive future for both of our businesses and will allow us to focus on reinvestment, growth in a highly competitive environment, and returning patronage to our cooperative members.”

Both companies have long histories in the Chippewa Valley. Gordy’s turns 50 this year, while Mega Co-op has been around 81 years.