Dive Brief:

• Coborn’s, Inc. is acquiring Upper Midwest grocery chain Tadych’s Econofoods, according to an emailed press release. Financial terms of the transaction, which is expected to close in early December, were not disclosed. 
• The acquisition will mark Coborn's entry into Michigan, with three Tadych's stores located in the state's Upper Penninsula. The six stores encompassed by the acquisition, which also includes three locations in eastern Wisconsin, will remain under the Tadych's name.
• The acquisition boosts Coborn's store count by roughly 10% and further strengthens its position in the Midwest retail market.

Dive Insight:

With the acquisition of Tadych's and the addition of a new Coborn's Marketplace store in Buffalo, Minnesota, next month, Coborn’s will have 66 grocery stores across Minnesota, Wisconsin, South Dakota, North Dakota and Michigan.

“The Tadych family has run their family of stores with great care and is a highly-respected retailer,” Chris Coborn, chairman, president and CEO of Coborn’s, said in the announcement. “We look forward to extending the same operating philosophies in these locations that have made us successful for 100 years – investing and training for our people, supporting our communities and investing in our stores to improve the experience for our guests.”

Coborn’s will hire all approximately 800 Tadych's employees, Coborn said. 

In 2018, the grocer completed a similar-size acquisition when it bought eight Hornbacher's stores from United Natural Foods, Inc.

Coborn’s, which celebrated its 100 anniversary this year, has embraced digital innovation and store updates in recent years. It established its own delivery service before the pandemic-induced e-commerce boom. The grocer has also been gradually transitioning its Coborn's stores over to a Marketplace model that features expanded perimeter departments, and will open a new location under that format in Buffalo, Minnesota, next month.

This year, Coborn's is ramping up its focus on fresh with expanded offerings in stores. Last week, the grocer expanded its work with Invafresh, which offers fresh item management software. In July, the company made Associated Wholesale Grocers, Inc. its primary wholesale supplier. 

Its six-store acquisition is the latest in a string of small-scale and regional grocery mergers this year, following Raley's announcement to acquire Bashas’ Family of Stores earlier this month and C&S Wholesale Grocers unveiling plans in July to purchase Piggly Wiggly Midwest. Other notable moves in the space include Bodega Latina acquiring Smart & Final for $620 million and Japanese retailer Pan Pacific International Holdings buying Gelson's.