March 18, 1998
"Our research shows that Rockford area customers put Logli's three supermarkets at the top of their list in every single product and service category," said Craig D. Schnuck, chairman and chief executive officer of Schnucks. "We plan to build on everything Logli's does to benefit its customers and, through the efficiencies made possible by our size, continue to bring low prices, top quality and great variety to our new customers in Rockford."
The change in ownership, effective March 30, will have no effect on Logli's 1,040 employees, whose pay rates, benefits and seniority will remain intact. No layoffs are planned. In fact, Schnucks will hire additional employees to help staff Logli's new Loves Park store, opening this summer.
"Joe and John Logli have built a terrific organization with a staff that's dedicated to customer service excellence in every way," said Scott C. Schnuck, president and chief operating officer of Schnucks. "We're thrilled to have this opportunity to join our teams so we can all grow together by serving Rockford customers the best way we both know how."
The Schnucks management team, which includes five brothers and one sister, will work with brothers Joe and John Logli to combine the two companies. The Logli brothers have agreed to stay at least until early 1999 to ensure continuity for Logli customers and staff. The company name will remain Logli and operate as a division of Schnucks. Schnucks currently has more than 14,500 employees serving customers at 86 stores in Missouri, Illinois and Indiana. With the purchase of Logli, the total will increase to 89. Twenty-three of those stores will be in Illinois.
Schnucks approached Logli about joining forces after discovering a strong match between the two family-owned and -operated companies. "We asked the Loglis to consider joining our organization when we discovered our shared passion for excellence in customer service, value and quality," said Craig Schnuck.
"The second reason for our excitement is the advantages this will give our employees," he added. "As part of a larger company, our employees will gain advancement opportunities, stability and security with an excellent firm that shares our strong Midwestern values."
The change will enhance both organizations, according to John H. Logli, vice president. "The Schnucks have a genuine appreciation for everything we've done to make our customers happy. They want to learn from what we've done well, and we want to learn from them. Our transition to being part of Schnucks will make the most of each of our strengths," he noted. "We're confident the result will be happy customers and loyal employees."
Because of its proximity to Logli's East State Street store, Schnucks will not go forward with plans to build a supermarket at the northwest corner of East State Street and Perryville Road, a site which Schnucks now owns. Schnucks' site is just a half mile east of that store, the largest free-standing supermarket in Illinois.
Schnucks is reviewing the size and configuration of the store it plans to build at the northeast corner of Charles Street and Hunter Avenue to ensure the design best matches the needs of its new Rockford customers.
Logli operates supermarkets at 6410 East State St. and 3150 N. Rockton Ave. in Rockford and at 8010 N. Second St. in Machesney Park. A new 160,000-square-foot Logli's superstore will open in late summer at 1810 Harlem Road in Loves Park, replacing the existing North Second Street store.
Terms of the stock purchase were not disclosed. The purchase is expected to be approved shortly by the Federal Trade Commission.
Following its purchase of Logli, Schnucks will operate 89 stores in Missouri, Illinois and Indiana. The company was founded in St. Louis in 1939.