Pamida Dodges Bullet

Date posted - March 2, 2012

The merger between Pamida and Shopko is complete, and the northwest Iowa area Pamida stores have dodged the bullet.
It was reported earlier that Shopko would be converting most of the Pamida stores into Shopko “Hometown” stores, but some of them would be closed completely. The Sheldon Pamida was not one of the stores that are being closed. The stores that will close are in Albia, Corydon and Red Oak, Iowa; Sparta and Ontonagon, Michigan; and Mt. Vernon, Missouri.
Shopko spokeswoman Tara Powers says the two companies have been linked in the past, but only behind the scenes. She says they were really run as two separate organizations and they shared some back office functions but they were largely independent of one another.
She says the companies are now truly merging together under the Shopko banner as one company, with one corporate office. While some company mergers are just done on a balance sheet, she says customers will see big changes at Pamida locations. The Pamida name will be eliminated and most product lines changed.
No changes are planned at any of the Shopko stores, but some $80-million will be invested over the next year to convert the remaining Pamida stores into Shopko Hometown stores this year. Combined, the new chain will have almost 350 stores in 22 states.
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