Green Bay Press-Gazette from Green Bay, Wisconsin • Page 5

ShopKo Sale A-5 Saturday, April 9, 2005 Green Bay Press-Gazette Discounter grew into national chain ShopKo timeline March 1961: Green Bay Mayor Roman Denissen and Shopco Stores, led by Chicago pharmacist James Ruben and a group of investors, announce plans for a $1 million department store on Military Avenue. April 1962: The first ShopKo (the spelling was changed since the initial announcement) opens at 216 S. Military Ave. July 1966: ShopKo East opens at 1819 Main St. June 1970: Ruben announces plans for corporate headquarters on Ashland Avenue in Ashwaubenon.

June 1970: ShopKo Corp. becomes ShopKo Stores Inc. January 1971: ShopKo announces plans to merge with SuperValu Stores of Minneapolis. January 1971: New Ashwaubenon headquarters opens. April 1971: Merger with SuperValu is completed.

August 1971: Company announces plans to start putting pharmacies in its stores. September 1972: William Tyrrell is named the new president; Ruben left Green Bay to become group vice president and director of SuperValu Stores. 1977: With 21 stores, ShopKo exceeds $100 million in sales. 1978: Expansion of Ashland Avenue headquarters. 1978: ShopKo opens its first optical center.

November 1979: New Ashwaubenon store opens a few Merger, IPO fueled growth BY KELLEY BRUSS kbrussgreenbaypressga2ette.c0m Pharmaceuticals serve as bookends to ShopKo Stores four-decade history and, in fact, are a theme throughout the company's story. At one end, in 1961, there's Chicago pharmacist and drugstore manager James Ruben who had a hunch that Green Bay was the right place for what the Green Bay Press-Gazette described then as a "giant store featuring name brand merchandise at discounted prices." Never mind that the site on Military Avenue was then on the outskirts of Green Bay, far from the bustling downtown shopping district. Never mind that the prevailing business opinion at the time was that such stores could only survive in larger markets. Ruben courted investors, took the plunge and in spring 1962 opened the first ShopKo. At the other end, in 2005, there's a company with more than 140 discount stores, a company whose recent moves include opening three ShopKo Express free-standing pharmacies.

In between are chapters of growth spurts, long-serving leaders and an emphasis on health-care services folded into the discount retail system. ShopKo announced in August 1971 that it would open its first in-store pharmacy in Marquette, Mich. Today, nearly every ShopKo store offers a pharmacy and an eye-care center. Dental offices were opened in some ShopKo stores beginning in 1984 but that venture ended in 1991. Ruben "saw the opportunity to combine health-care services with a large discount store, and ShopKo became one of the first mass retailers to feature pharmacies and eye-care centers in its stores," according to the company's Web site.

In January, ShopKo opened its first free-standing pharma cies one more move in its long history of bringing healthcare products to consumers along with the usual discount store offerings of apparel and home and family products. Green Bay beginnings In March 1961, Green Bay Mayor Roman Denissen and Shopco Stores, "a new Chicago retail chain," announced plans for a $1 million department store development on Military Avenue. The Green Bay store was to be the first of 22. Construction began in fall 1961 and the store opened in April 1962. The day before the opening, the Press-Gazette declared the store now being called ShopKo would usher in "a new era in retailing." Four years later, the name ShopKo West began to be used, to distinguish the Military Avenue store from its sister, ShopKo East, which opened in July 1966 at 1819 Main St.

Ruben was quickly proving his hunch that such stores could not only survive but thrive in small to medium-sized markets. ShopKo expanded into a second state in 1969 when it opened a store in Marquette, Mich. By 1971, the company had opened its 10th store. Headquarters In less than 10 years, Shop-Ko's corporate team was outgrowing its space in the Beacon Center on Military Avenue. In June 1970, Ruben announced plans for a new office buildingcorporate headquarters at 2800 S.

Ashland in Ash-waubenon. The facility opened in January 1971. The building was expanded in 1978 and again in 1981 to accommodate ShopKo's growing corporate staff. In 1984, news surfaced that ShopKo was hunting for a new corporate location. While three Green Bay sites two in downtown and a De Pere site were under consideration, so were multiple out-of-state options.

But in May 1986, the company announced it would stay in the Green Bay area. James Ruben, president of ShopKo Stores shows a model of a office building and corporate headquarters in June 1970 that would be constructed in the town of Ash-waubenon. FilePress-Gazette was, at the time, one of the largest initial offerings in Wisconsin history In May 1999, ShopKo announced it was acquiring the 147-store Pamida chain. President and chief executive officer William Podany said at the time that the acquisition was "probably the largest milestone and the biggest event in the company's history with the exception of going public in 1991." Benchmarks In early 1971, 10 years after announcing its creation, the company had 14 stores in Wisconsin, Michigan and Minnesota and plans to open three more during the year. After merging with SuperValu, ShopKo closed the year with gross sales of more than $30 million and more than 1,000 employees.

Ten years later, in 1981, Shop- About that name According to a 1968 Green Bay Press-Gazette article, "the name ShopKo has no particular significance except as a short, easy-to-remember name that still contains reference to (founder James) Ruben's concept of a shopping or shopper's center. "He wanted something that contained the idea of shopping, somebody came up with a twist of the capital 'K' in place of a 'c' in the abbreviation for company and that was it. "ShopKo is a short, sharp word, easy to fit into advertising copy. It makes an attractive symbol, is easy to pronounce and is just indefinite enough to make people remember it because they wonder what it means." Ko had doubled to 30 stores in four states and employed about 5,600 people. By 1984, the company was in Wisconsin, Minnesota, Michigan, South Dakota, Iowa and Nebraska.

It had 50 stores and more than 8,000 employees. In 1990, ShopKo passed the 100-store mark. Company sales passed the $100 million mark in 1977, hit $1 billion in 1988 and passed $2 billion in 1997. Today, with Pamida, ShopKo employs more than 25,000 people in more than 360 stores in 23 states. Annual sales exceed $3 billion.

The presidency Ruben left Green Bay in 1972 to become group vice president and director of SuperValu Stores. William Tyrrell was named his successor. He served until 1991, when Dale Kramer took the helm. Kramer announced his retirement in January 1999 and was replaced in March by Podany. Podany resigned in April 2002 and current PresidentCEO Sam Duncan was named his replacement in October 2002.

Sources: Green Bay Press-Gazette archives and ShopKo Stores Inc. Tips for employees during uncertainty Stay positive: Keep focused on work goals and objectives. Don't slack. Change can bring opportunities for your career. Have your resume ready: Add new skills as you learn.

You can always remove irrelevant information from your final version. Keep your network alive: Check in with members of your network with a quick phone call or e-mail; take the opportunity to help others they may some day return the favor. Stimulate your brain: Brush up on your skills or learn some new ones. Take time for yourself: Your emotional well-being will help you withstand the rigors of job uncertainty. Keep up with interests outside of work, for example, a daily workout or hobby.

Don't let work stress spill into home life. Source: Careerplanning.com, University of Wisconsin-Extension What did you accomplish and what did you feel good about in your past?" she said. Include high school or community volunteer work. Develop a personal mission statement. "That helps when facing a potential downsizing." Also, list your financial assets, current vacation and benefits package so that you are aware of your lifestyle needs when negotiating.

Look at ways to stay flexible, she said. Join a trade group or professional association. Should layoffs occur, the state Department of Workforce Development helps displaced employees. "The department has services available. We can help people get connected," said communications director Rose Lynch.

Community advocates hope to keep corporate partners Workers should focus on past successes, future opportunities Late that same year, 46 acres just east of Bay Park Square were earmarked for the new headquarters. Construction at 700 Pilgrim Way began in fall 1987 and the headquarters at that site where the company is still located opened in 1988. Mergers, acquisitions In January 1971, ShopKo made what would be its most significant partnership decision for years to come the company announced plans to merge with SuperValu Stores of Minneapolis. The merger was completed in April that year and ShopKo became a wholly owned subsidiary of SuperValu. Twenty years later, SuperValu and ShopKo announced the latter would spin off as an independent entity The October 1991 initial public offering of ShopKo stock Mike Sweeney, managing partner for Goldner Hawn Johnson Morrison, Inc.

holds a press conference Friday at ShopKo headquarters in Ashwaubenon. B.A. Rupert Press-Gazette ShopKo spokesman John Vigeland said Friday the company doesn't anticipate a change to the company's charitable efforts. Vigeland said the company decided months ago that this year will be the last for the ShopKo Charity Golf Classic, which has raised more than $18 million over the last 25 years for Special Olympics and other charities in ShopKo communities. He said a ShopKo Foundation has been established.

Schmitt said the sale translates into an investment in ShopKo's growth in business. Further, Kopish said, "On the positive side, we have seen where even with the Georgia-Pacific acquisition, they are maintaining a high profile and a significant commitment by virtue of their recent investment in the plans here and their participation with community activities." Loch agreed. "I think most of the companies that you see the changeover, there really is an interest in the community where they've got their new business, so to speak, even though it's old business to us," she said. "They still want to have that sense of community" Richard RymanPress-Gazette months before the opening of Bay Park Square shopping center. 1981: Second expansion of Ashland Avenue headquarters.

1981: ShopKo opens its 30th store. 1984: Company begins looking for new space for corporate offices; De Pere, Green Bay and out-of-state sites are under consideration. May 1986: ShopKo announces it will stay headquartered in the Green Bay area. 1987: Construction begins on new headquarters on 46-acre site just east of Bay Park Square; the building opens in 1988. 1988: With 87 stores, the company exceeds $1 billion in sales.

1988: ShopKo announces a new east-side store will go in at East Towne Mall, replacing the 1819 Main St. store. 1990: ShopKo opens its 100th store. June 1991: SuperValu announces ShopKo will spin off as a publicly held company. Summer 1991: Dale Kramer becomes the company's third president.

October 1991: In an initial public offering, ShopKo stock is offered at $15 a share. September 1996: A merger is announced with Phar-Mor of Youngstown, Ohio. April 1997: Phar-Mor deal falls apart. April 1997: ShopKo announces it will secure independence from SuperValu by buying back the other company's 46 percent share of ShopKo stock. July 1997: Buy-back from SuperValu completed.

March 1999: William Podany becomes president and chief executive officer. March 1999: ShopKo announces record earnings for 1998 earning $55.6 million or $2.23 per share. May 1999: ShopKo announces it will buy the 147-store Pamida chain for $375 million. July 1999: ShopKo begins selling stock for ProVantage, a prescription benefits company that helped spur ShopKo's growth. March 2000: ShopKo reports record earnings of $3.57 per share in 2000, up 70 percent from the year before.

May 2000: ShopKo announces it will sell ProVantage to Merck Co. for about $222 million. January 2001: ShopKo announces it will close 23 stores and cut 2,500 jobs, including 1 36 at corporate headquarters. April 2002: Podany resigns as president and CEO; Jeffrey Girard replaces him on an interim basis. October 2002: Sam Duncan becomes president and CEO.

January 2005: ShopKo opens three ShopKo Express stores, a new, smaller concept competing with the likes of Wal-greens and Osco. Sources: Green Bay Press-Gazette archives, ShopKo Stores Inc. Brown County's top employers Company Employees 1. Georgia-Pacific 3,837 2. Schneider National 3,249 3.

Oneida Tribe of Indians 2,751 4. Humana 2,700 5. Green Bay Public Schools 2,619 6. St. Vincent Hospital 1 ,827 7.

ShopKo Stores Inc. 1,814 Source: Green Bay Area Chamber of Commerce, June 2003 BY ANDY BEHRENDT abehrendgreenbaypressgazette.com Beth and Norbert Hoffman of Allouez know that buyouts are nothing new for the Green Bay area. After all, he's retired from the former Fort Howard which was purchased by Georgia-Pacific. But as they were leaving the De Pere ShopKo Friday afternoon, the Hoffmans expressed the hope that the proposed sale of ShopKo to Minneapolis-based investment company Goldner Hawn Johnson Morrison would have little effect on their shopping choices. "It's going to be hard on us if they would close ShopKo it's so convenient," said Beth Hoffman.

"It's a household name," her husband added. Company officials say folks need not worry about store closings and lost jobs. But some people are concerned about the trend of buyouts. "It's quite concerning when you're losing companies that have significant histories and histories of being value-added employers, being contributors in the community," said Ray Kopish, vice president of member services with the Green Bay Area Chamber of Commerce, who was on hand Friday for the announcement of the sales agreement. On the other hand, Kopish said, it was reassuring to hear that the future owners say that no changes are planned relative to leadership, the location of the corporate headquarters in Ashwaubenon or ShopKo's contributions to the community.

ShopKo could soon join the ranks of local companies to shift ownership to companies outside the area. Among the biggest instances, California-based PacifiCare Health Systems Inc. bought American Medical Security Group in Howard in a $502 million deal late last year. Georgia-Pacific in 2000 bought Fort James the company formed in 1997 with the merging of James River Corp. and Fort Howard Corp.

Kopish noted that leaves BY MIKE H0EFT mhoeftgreenbaypressgazette.com With the uncertainty that accompanies a change of corporate ownership, it's important for employees to stay positive, say local career counselors. "Stay focused on your job, and keep a look out for other opportunities," said Am Bongxay, human resource coordinator for Ahead Human Resources in Green Bay In a letter to ShopKo employees, chairman Jack Eugster said there will be no immediate changes. "We will continue with business as usual and will remain committed to providing outstanding employee development and customer service," he wrote. Employees at ShopKo's corporate headquarters in Ashwaubenon refused to comment about the sale agreement Friday, noting they were advised by the company not to speak to the media. Barbara Jordan, who runs Advantedge Success Coaching, a career counseling and corporate consulting company in Green Bay, said employees should try to remain optimistic.

"Sometimes people jump the gun and think the worst. They should step back and withhold from responding," said Jordan, who has a master's degree in educational psychology. Offer your current employer added value. "Go the extra mile," she said. "Secondly, brush up on your resume," she said.

"In today's world, you should treat yourself as a business of one so that you're continuously adding to your skill set and staying abreast of the industry." A lot of people who are faced with change often dwell on the negative. She urged employees to do a success inventory of their life. "An inventory helps recall past achievements. A resume does much the same thing. Schneider National as perhaps the only local Fortune 500-cal-iber company still untouched.

Green Bay Mayor Jim Schmitt pointed to the importance of locally headquartered companies in charitable efforts for the community It's thus important to keep in touch with parent companies where decisions are made, he said, noting city officials plan trips to cities where headquarters of locally operating companies are located. "ShopKo's just a great flagship company in our community of course, the ShopKo Fireworks plus the employee base," Schmitt said. "We not only need their money, we need their employees to be active in our community," he said of local businesses. "ShopKo has done a great job with that, and we look for that to continue." Toni Loch is president and chief executive officer of the Brown County United Way which has seen a continuing decline in corporate giving. She said there can be clear concerns with the trend, "depending on the parent company how much of a presence they want to be here, as well as understanding the more that happens, we also want those other companies to care about what goes on in Brown County.".