Coborn’s Acquires Another Grocery Banner
Coborn’s is expanding its store portfolio. Two Kessler’s Food locations in the South Dakota towns of Aberdeen and Miller are transferring ownership to Coborn’s.
Reed Kessler, owner and EVP of Kessler’s, made the announcement in a heartfelt letter shared on that grocer’s Facebook page. “This partnership is particularly meaningful to us, as the Kessler family and Coborn’s have known each other for decades,” he said. “Coborn’s brings the resources and the strength of a larger company, which will enhance your shopping experience with better pricing, greater variety and improved services.”
[RELATED: Coborn’s Inc. Acquiring Sullivan’s Foods Grocery Stores]
The stores will continue to operate under the Kessler’s name but will transition from a family-owned business to an Employee Stock Ownership Plan (ESOP) model. The grocer has served the communities for 86 years and currently employs about 250 full-time and part-time associates. Kessler’s recently updated the exterior of the Aberdeen store and added an in-store Caribou Coffee counter.
In his message to customers, Kessler underscored the challenges and opportunities in today’s environment. “The retail landscape is changing rapidly, and as a small organization it would be increasingly difficult for Kessler’s to remain competitive long term. Coborn’s size and resources will help us stay cutting edge and competitive, ensuring that we remain best-in-class.”
Coborn's affirmed that it will keep on the Kessler's team members. “The Kessler family has run their family of stores with great care and is a highly respected retailer,” said Chris Coborn, chairman, president and CEO of Coborn’s. “We look forward to extending the same operating philosophies in these locations that have made us successful for 104 years – investing and training for our people, supporting our communities and investing in our stores to improve the experience for our guests. We look forward to having the entire Kessler’s team join us and to learn more about their operations and communities.”
He continued, “Kessler’s has always prioritized quality, service, and convenience, offering fresh produce, floral, meat, seafood, instore bakeries, and delis. Their success is driven by dedicated employees, strong customer relationships, and a commitment to community engagement. Customer satisfaction remains a core value, reflected in their focus on competitive prices, high-quality products, and continuous improvement."
St. Cloud, Minn.-based Coborn’s has nearly 10,000 employees and 77 grocery stores across Minnesota, North Dakota, South Dakota, Wisconsin, Michigan and Illinois under the Coborn’s, Cash Wise Foods, Marketplace Foods, Hornbacher’s, Tadych’s Marketplace Foods and Sullivan’s Foods banners. The company also operates fuel, liquor and pharmacy locations, as well as its own central bakery, dry-cleaning facility and grocery distribution center. It is No. 84 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
