Two of the nation’s leading Midwest-based retail chains, Shopko Stores and Pamida, which both carry jewelry, announced they will merge to create one large chain focused on serving smaller and rural communities. 

The combined entity, which will use the ShopKo name, will have nearly 350 locations in 22 states. It plans for new stores in mid-2012 and beyond.

Green Bay, Wis.-based Shopko operates 149 stores in 13 states in the Midwest, Mountain, and Pacific Northwest regions. The company has annual revenues of nearly $2 billion.

Omaha, Neb.-based Pamida operates 193 stores in 17 states, primarily in the Mountain, North Central, and Midwest regions. It has revenues of approximately $1 billion.

The combined company will be headquartered in Green Bay and be led by Shopko president, chairman, and CEO W. Paul Jones. Pamida president and CEO John Harlow will “serve on the leadership team and help direct the integration process,” a company statement said.

Both companies are owned by affiliates of Sun Capital Partners, a private investment firm.

JCK