American Stores
Encyclopedia
American Stores Company was an American
public corporation
and a holding company
which ran chains of supermarket
s and drugstores
in the United States
from 1917 through 1999. The company was incorporated in 1917 when The Acme Tea Company merged with four small Philadelphia, Pennsylvania
area grocery stores (Child's, George Dunlap, Bell Company and A House That Quality Built) to form American Stores. In the following eight decades, the company would expand to 1,575 food and drugstores in 38 states with $20 billion in annual sales in 1998.
's Alpha Beta
chain of supermarkets. In the 1970s, in order to compete with lower priced grocery retailers such as ShopRite
and Pathmark
(competitors which did not offer trading stamps
), Acme Markets launched its Super Saver
discount grocery chain in Pennsylvania
.
American Stores itself was acquired in 1979 by Skaggs Drug Centers, which adopted the American Stores Company name, and relocated the company headquarters to Salt Lake City, Utah
.
American Stores was by far the larger organization, with 758 supermarkets, 139 drugstores, 53 restaurants, and 9 general merchandise stores in nine states when compared to the 241 Skaggs stores. Although the resulting entity bore the American Stores Company name, it was controlled by Skaggs management headed by Leonard S. Skaggs Jr. more familiarly known as Sam Skaggs
. Stores in several markets having both an Alpha Beta
supermarket and a Skaggs Drug Center drugstore presence were combined (or expanded) to combination food and drug stores and re-branded Skaggs-Alpha Beta.
, and Florida
. To help overcome these remaining geographical shortcomings, Sam Skaggs
made another attempt to merge with the Jewel Companies, Inc.
in 1984.
was forced to engineer a hostile takeover. On June 1, 1984, American Stores tendered an offer worth $1.1 billion for 67 percent of Jewel's outstanding shares at $70 per share.
For two weeks, Jewel Companies, Inc.
management refused all comment on the offer, maintaining its silence even at a stormy shareholder's meeting before which Jewel shareholder groups controlling 20 percent of the company's stock had come out in favor of negotiating with American Stores. Finally, on June 14, Sam Skaggs
and Jewel president Richard Cline reached an agreement after an all-night bargaining session. American Stores raised its bid for Jewel's preferred stock, increasing the total bid to $1.15 billion in cash and securities. In return, Jewel dropped plans for a defensive acquisition of Household International Inc. and accepted American Stores' offer. To help raise cash for the deal, American Stores sold its Rea and Derick, Inc. subsidiary comprising 134 drugstores in December 1984 to People's Drug
, a division of Imasco Limited. 33 Alpha Beta
grocery stores in Arizona
sold to ABCO Foods
, 22 Alpha Beta
grocery stores and support facilities in northern California
were also sold.
The acquisition of Jewel Companies consisted of the Melrose Park, Illinois
based Jewel Food Stores
supermarket chain, Oak Brook, Illinois
based Osco Drug
, Cambridge, Massachusetts
based Star Market
, Anaheim, California
based Sav-on Drugs, Buttrey Food Stores
and White Hen Pantry
. This acquisition also returned L. L. Skaggs
's Osco Drug chain to the Skaggs family
ownership. And Sav-on Drugs, another Jewel Companies subsidiary, had been founded by C.J. Call, who had once been a business partner of another of Sam Skaggs's
uncles, O.P. Skaggs
.
This merger added 193 supermarkets, 358 drugstores, 140 combination food and drug stores, 301 convenience stores, and 132 discount stores to American Stores' holdings. But in 1985, the company found itself in legal trouble through its new subsidiary. A salmonella
food-poisoning outbreak affecting some 20,000 people in the Midwest was traced to Jewel's Hillfarm Dairy that had supplied tainted milk to Jewel
stores in March and April 1985. In 1987, Jewel was found not liable for punitive damages
in Illinois Cook County Circuit Court but agreed to pay compensatory damages estimated at $35 to $40 million.
In 1985 American Stores sold the White Hen chain, since convenience store
s did not fit into the company’s plans. Buttrey Food & Drug
and Star Market
were put up for sale in order to raise capital and pay down debt. Although the company continued to operate these subsidiaries, investment in remodeling and new construction for these stores and for Acme Markets was minimal throughout the 1980s.
By 1987 American Stores Company was the largest drug retailer in the United States
, but only the third-largest grocery retailer and underperforming its peers. In October 1987, the company exited the Idaho
and Washington drugstore markets with the sale of 25 Osco Drug
units to Pay Less Drug Stores
.
, an Alpha Beta
competitor noted for high efficiency and low prices. American Stores’ Alpha Beta
chain in California
was struggling, plagued by high prices and a reputation for poor service. At the time, Lucky was California's leading grocery retailer, due in part that it was the only chain with a significant presence in both northern California
and southern California
. Lucky refused American Stores' first offer. Within a month, American Stores proposed to up its bid if Lucky would agree to a friendly takeover. Again Lucky management rejected the offer as inadequate and was said to be contemplating defensive strategies. Later, American Stores upped its bid to $2.5 billion, or $65 per share. Lucky accepted and American Stores was on track to become the largest supermarket chain in the United States
, over the Kroger
and Safeway
chains.
In August 1988, California Attorney General John Van de Kamp
asked the Federal Trade Commission
to void the sale, claiming that a Lucky-Alpha Beta juggernaut would cost California
consumers $400 million by reducing competition. The Federal Trade Commission
refused but did force the divestiture of 37 Alpha Beta
stores, which were sold in December 1988, the same month 38 Lucky stores in Arizona
were also sold. Van de Kamp then took his case to court, and on September 1988, a federal judge in Los Angeles
issued a preliminary injunction
against the merger. American Stores appealed, and in April 1989, an appeals court judge in San Francisco, California
overturned the injunction. Van de Kamp appealed this reversal to the U.S. Supreme Court; meanwhile, American Stores continued to plan its assimilation of Lucky
. The U.S. Supreme Court in April 1990 ruled in favor of the California attorney general. Wishing to avoid additional lengthy litigation, the following month American Stores reached an agreement with Van de Kamp
whereby the company was allowed to convert 14 Alpha Beta
stores to the Lucky name but also had to sell 161 southern California
stores (152 Alpha Beta
stores and 9 Lucky stores
) within 5 years. The deal put no restrictions on American Stores' future growth in California and did not require state approval of the buyer or terms of the sale.
, American Stores relocated its corporate headquarters from Salt Lake City, Utah
to Irvine, California
in July 1988. At the time, the company indicated the reason for the move was to place the headquarters in one of the company’s major operating market areas and therefore closer to its business interests. However, the corporate headquarters was moved back to Salt Lake City, Utah
in 1989 with little explanation.
were underway. The strategy was to build a nationwide network of pharmacies, streamline operations and advertising in order to gain national recognition for the brand, especially for the high-margin private label products. The name Osco Drug
was chosen as the national chain banner because of the large number of stores which already had that name and existed in various parts of the United States
. The name change was completed for the Skaggs drugstores in 1985 and then for the Sav-on stores in 1986. The name "Osco" did not resonate well with Sav-on's southern California
customer base. American Stores eventually made the decision to change the name of the former Sav-on stores back to Sav-on Drugs. Rumors circulated at the time claiming that the reason for the name change back to ‘Sav-on’ was due to "Osco" having the same pronunciation as the Spanish word "asco" (oss-ko) which means disgust or loathing, a considerable factor within southern California
’s heavily Hispanic market. Ironically, American Stores abbreviated is "ASCO". This explanation for the name change was refuted by American Stores. The name change on all stores was completed in 1989 and the Sav-on Drugs brand was re-launched in southern California
and Nevada
.
, Sav-on Drugs, the Osco side of the Jewel-Osco food-drug combination stores and RxAmerica. RxAmerica began earlier in 1989 as a mail service prescription fulfillment center with a facility in Salt Lake City, Utah
.
. This marked American Stores’ re-entry into the Southeast after an absence of nearly two decades. Mark S. Skaggs, son of Sam Skaggs
was president of the new Jewel-Osco of Florida division. This was a wholly separate division of the company and was not part of the Jewel Food Stores
chain in the Midwest or the American Drug Stores
subsidiary. Unlike the combination stores in the Midwest, where Jewel ran the food side of the combination stores and Osco ran the drug side, the Florida
stores were run by a one overall manager, similar to the way a Skaggs Alpha Beta store was managed. Only six Jewel-Osco stores were opened in Florida
and all were sold to Albertsons in 1992.
, but in order to compete in the fierce retail environment of the 1990s the company announced plans in 1992 to transform itself into an integrated operating company. As part of this transition, the company also began to centralize companywide its procurement, warehousing, inventory control, distribution, marketing, payroll and human resources operations. Another aspect of the plan involved the consolidation of the central support organizations of the drugstore and grocery store operations. At the same time, American Stores sought to initiate faster growth, this time primarily through the opening of new stores and not through acquisitions. This ambitious plan to create better efficiencies won a lot of support from investors. The plan, called the Delta Project, was expected to turn American Stores into a more profitable national supermarket company with greater shareholder value by centralizing its buying operations, as well as putting together more food and drugstore combination stores.
From 1992 up through 1998, American Stores consolidated operations and moved major responsibilities of their subsidiaries to their headquarters in Salt Lake City, Utah
. The company’s employees based in Salt Lake City, Utah
increased from fewer than 100 in 1992 to over 1,200 by 1998. During this period, American Stores itself did not operate any food or drugstores in Utah
having sold-off the Osco Drug
and Alpha Beta
Utah stores in 1991.
. New store formats were built in Anaheim
, Indio
, National City
, Oceanside
and several existing Lucky stores were converted to this warehouse format in Sacramento
, Pittsburg
, Vacaville
, and Woodland
. Initially, these stores were named Price Advantage, based on a Lucky Advantage prototype store in Escondido, California
. Price Club
sued American Stores over name infringement
shortly before the grand opening of the stores. The stores were swiftly renamed Food Advantage the night before grand openings, with the word "Price" marked out with a thick ink marker on every label, tag and sign in the store. In the coming months these stores were branded as Food/Price Advantage and finally as Super Saver Food
. Super Saver Food
was a familiar brand which had been used in the 1970s and early 1980s by Acme for their discount grocery store format in Pennsylvania
and was a trademark still owned by American Stores.
a prototype for entry into the high end food retail market with selections of natural and organic products, produce, seafood, grocery, meat and poultry, bakery and prepared foods. The venture was quickly abandoned and the store was closed within a year.
. Don L. Skaggs was also the Executive Vice President and General Manager of Skaggs Telecommunications Service, Inc. a non-retail subsidiary of American Stores consisting of an audio media production company, a satellite teleport U.S. Satellite Corporation and an operation that sold equipment to law enforcement agencies. 72 year-old Sam Skaggs
relinquished the chairmanship of American Stores to Victor L. Lund in 1995. Skaggs
still held an 18.3 percent stake in the company and a seat on the company board, and when he announced in July 1996 that he was exploring options for his stake, speculation about a possible takeover ran wild. The company was not certain if Skaggs’ intention was to launch a proxy fight for control of American Stores or to alter its current management or direction. By February 1997 an agreement was reached between American Stores and Skaggs whereby the company would repurchase about 12.2 million of Skaggs's shares for $550 million, with the remaining shares subsequently be sold to the public through a secondary offering. This purchase reduced Skaggs
’ stake in the company to five percent, insufficient ownership for him and his family members to retain seats on the company's board.
, American Stores highlighted its accomplishments over the past year and its plans for the sustained long-term growth. In his keynote address, chairman and chief executive officer Victor L. Lund said, "During the past year, we have transformed many of our key plans for the future to reality. We are confident that our plan for growth is working and is squarely on track. We've set our sights very high because we know our visions of tomorrow will be achieved". A day earlier, American Stores had held a ceremony marking the opening of the American Stores Center, its 24 story corporate office building in downtown Salt Lake City, Utah
. The building had a company-owned Italian restaurant, Il Sansovino and a convenience store, the The American Store, on the ground level floor.
Six weeks later, on August 3, 1998 it was announced that Albertsons would acquire American Stores for $11.7 billion. Soon after the announcement, the Federal Trade Commission
charged that Albertsons' proposed acquisition of American Stores would substantially lessen supermarket competition in California
, Nevada
and New Mexico
. The proposed acquisition, the FTC charged, could result in higher prices or reduced quality and selection for consumers. As a condition of the sale, Albertsons and American Stores agreed to sell 144 supermarkets (104 Albertson's supermarkets, 40 American Stores' Lucky supermarkets) in 57 markets in order to resolve. The divestiture agreement, was the largest retail divestiture ever required by the Federal Trade Commission
. Due to the mandated sale of stores, the acquisition took nearly a year to complete. In June 1999, the acquisition was complete, ASC was de-listed on the New York Stock Exchange
and American Stores ceased to exist.
During 1999, the drugstore operations division and general merchandise procurement functions were moved from Salt Lake City, Utah
to Scottsdale, Arizona
operating as Albertsons Drug Region. The functions which supported the food divisions were consolidated and moved from Salt Lake City, Utah
to Albertsons headquarters in Boise, Idaho
. For a short time after the acquisition of American Stores, Albertsons leased several floors of the American Stores Center building to the International Olympic Committee
- Utah had been awarded the 2002 Winter Olympics
. The building is now owned by Wells Fargo
.
For a very short time after the American Stores acquisition was completed, Albertsons was the largest food/drug chain in the United States
operating nearly 2,500 stores in 40 states. Albertsons preserved the Acme, Jewel-Osco
, Osco Drug
and Sav-on Drugs namesakes. Shortly after the sale, Albertsons rebranded the Lucky
stores under the Albertsons name because both chains had stores and overlap in northern and southern California
. (The Lucky
brand would be revived in 2006 by SuperValu
).
Both SuperValu
and Albertsons LLC
use the Albertsons store banner name.
The drugstore division has an Alumni Club website where membership is open to current employees, retirees and former employees of Osco Drug, Jewel Osco, Sav-on Drugs and affiliated companies - both past and present: Supervalu, Albertsons, American Stores Company, American Drug Stores, Buttrey Food & Drug, Skaggs Drug Centers, Jewel Food Companies, Republic Lumber, Turn*Style, RxAmerica, Health'n'Home.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
public corporation
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
and a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
which ran chains of supermarket
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
s and drugstores
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
from 1917 through 1999. The company was incorporated in 1917 when The Acme Tea Company merged with four small Philadelphia, Pennsylvania
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
area grocery stores (Child's, George Dunlap, Bell Company and A House That Quality Built) to form American Stores. In the following eight decades, the company would expand to 1,575 food and drugstores in 38 states with $20 billion in annual sales in 1998.
History
By 1925, American Stores had grown from 5 supermarkets in 1917 to nearly 1,800 stores. In 1946, a proposed acquisition of Grand Union supermarkets was turned down by Grand Union stockholders.1960s-1970s
In 1961 American Stores company acquired CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
's Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
chain of supermarkets. In the 1970s, in order to compete with lower priced grocery retailers such as ShopRite
ShopRite (United States)
ShopRite Supermarkets is a retailers' cooperative chain of supermarkets in the northeastern United States, with stores in New Jersey, New York, Connecticut, Delaware, Maryland, and Pennsylvania...
and Pathmark
Pathmark
Pathmark is a supermarket chain headquartered in Montvale, New Jersey. It was founded in 1968 when its then parent, Supermarkets General Corporation, pulled out of the ShopRite retailers' cooperative...
(competitors which did not offer trading stamps
S&H Green Stamps
S&H Green Stamps were trading stamps popular in the United States from the 1930s until the late 1980s. They were distributed as part of a rewards program operated by the Sperry and Hutchinson company , founded in 1896 by Thomas Sperry and Shelly Hutchinson...
), Acme Markets launched its Super Saver
Super Saver Foods
Super Saver Foods is a United States price-impact grocery franchise. It is currently owned by Albertsons LLC. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
discount grocery chain in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
.
American Stores itself was acquired in 1979 by Skaggs Drug Centers, which adopted the American Stores Company name, and relocated the company headquarters to Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
.
American Stores was by far the larger organization, with 758 supermarkets, 139 drugstores, 53 restaurants, and 9 general merchandise stores in nine states when compared to the 241 Skaggs stores. Although the resulting entity bore the American Stores Company name, it was controlled by Skaggs management headed by Leonard S. Skaggs Jr. more familiarly known as Sam Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
. Stores in several markets having both an Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
supermarket and a Skaggs Drug Center drugstore presence were combined (or expanded) to combination food and drug stores and re-branded Skaggs-Alpha Beta.
- In 1977, Skaggs Companies, Inc. had amicably dissolved a partnership started in 1969 with the Albertsons supermarket chain which pioneered the first combination grocery/drug with stores named Skaggs-Albertsons.
1980s
American Stores posted $83 million in earnings on sales of nearly $8 billion in 1983. But its presence was still weak in the Midwest, New EnglandNew England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
, and Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. To help overcome these remaining geographical shortcomings, Sam Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
made another attempt to merge with the Jewel Companies, Inc.
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
in 1984.
- In 1978 Skaggs Companies, originally had worked out an agreement to merge with Jewel Companies, Inc.Jewel (supermarket)Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
, but the merger was torpedoed at the last minute when some of Skaggs's directors, concerned that they would lose their autonomy under the deal, failed to approve it.
Acquisition of the Jewel Companies, Inc.
The Jewel Companies, Inc. chairman Weston Christopherson was opposed to a merger and Sam SkaggsSkaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
was forced to engineer a hostile takeover. On June 1, 1984, American Stores tendered an offer worth $1.1 billion for 67 percent of Jewel's outstanding shares at $70 per share.
For two weeks, Jewel Companies, Inc.
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
management refused all comment on the offer, maintaining its silence even at a stormy shareholder's meeting before which Jewel shareholder groups controlling 20 percent of the company's stock had come out in favor of negotiating with American Stores. Finally, on June 14, Sam Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
and Jewel president Richard Cline reached an agreement after an all-night bargaining session. American Stores raised its bid for Jewel's preferred stock, increasing the total bid to $1.15 billion in cash and securities. In return, Jewel dropped plans for a defensive acquisition of Household International Inc. and accepted American Stores' offer. To help raise cash for the deal, American Stores sold its Rea and Derick, Inc. subsidiary comprising 134 drugstores in December 1984 to People's Drug
Peoples Drug
Peoples Drug was a chain of drug stores based in Alexandria, VA, a suburb of Washington, D.C.. Founded in 1904, Peoples was subsequently purchased by Lane Drug in 1975, Imasco in 1984, and finally by CVS in 1990, which continued to run the stores under the Peoples banner until 1994, at which time...
, a division of Imasco Limited. 33 Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
grocery stores in Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
sold to ABCO Foods
ABCO Foods
ABCO Foods was a chain of grocery stores in Phoenix and Tucson, Arizona for over 15 years, formed from a mid-1980s spin-off sale by the Alpha Beta division of American Stores. The Arizona regional management secured private financing to purchase the Arizona stores...
, 22 Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
grocery stores and support facilities in northern California
Northern California
Northern California is the northern portion of the U.S. state of California. The San Francisco Bay Area , and Sacramento as well as its metropolitan area are the main population centers...
were also sold.
The acquisition of Jewel Companies consisted of the Melrose Park, Illinois
Melrose Park, Illinois
Melrose Park is a village in Cook County, Illinois, United States. It is a "near-in" suburb of Chicago. The population was 23,171 at the 2000 census. Melrose Park has long been home to a large Italian-American population, though now it is majority Mexican-American. It was the home of Kiddieland...
based Jewel Food Stores
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
supermarket chain, Oak Brook, Illinois
Oak Brook, Illinois
Oak Brook is a village in DuPage and Cook Counties, in Illinois. The population was 8,702 at the 2000 census. A suburb of Chicago, it is the headquarters of McDonald's and Lions Clubs International.-History:...
based Osco Drug
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
, Cambridge, Massachusetts
Cambridge, Massachusetts
Cambridge is a city in Middlesex County, Massachusetts, United States, in the Greater Boston area. It was named in honor of the University of Cambridge in England, an important center of the Puritan theology embraced by the town's founders. Cambridge is home to two of the world's most prominent...
based Star Market
Shaw's Supermarkets
Shaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
, Anaheim, California
Anaheim, California
Anaheim is a city in Orange County, California. As of the 2010 United States Census, the city population was about 365,463, making it the most populated city in Orange County, the 10th most-populated city in California, and ranked 54th in the United States...
based Sav-on Drugs, Buttrey Food Stores
Buttrey Food & Drug
Buttrey Food & Drug was a chain of grocery stores founded in Havre, Montana and formerly headquartered in Great Falls, Montana. The company was founded in 1896 as a chain of department stores branded Buttrey Department Store. The company opened grocery stores in 1935 and sold off its department...
and White Hen Pantry
White Hen Pantry
White Hen Pantry was a Lombard, Illinois-based chain of approximately 261 predominantly franchisee-owned convenience stores located in the greater Chicago and Boston / New England areas of the United States...
. This acquisition also returned L. L. Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
's Osco Drug chain to the Skaggs family
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
ownership. And Sav-on Drugs, another Jewel Companies subsidiary, had been founded by C.J. Call, who had once been a business partner of another of Sam Skaggs's
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
uncles, O.P. Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
.
This merger added 193 supermarkets, 358 drugstores, 140 combination food and drug stores, 301 convenience stores, and 132 discount stores to American Stores' holdings. But in 1985, the company found itself in legal trouble through its new subsidiary. A salmonella
Salmonella
Salmonella is a genus of rod-shaped, Gram-negative, non-spore-forming, predominantly motile enterobacteria with diameters around 0.7 to 1.5 µm, lengths from 2 to 5 µm, and flagella which grade in all directions . They are chemoorganotrophs, obtaining their energy from oxidation and reduction...
food-poisoning outbreak affecting some 20,000 people in the Midwest was traced to Jewel's Hillfarm Dairy that had supplied tainted milk to Jewel
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
stores in March and April 1985. In 1987, Jewel was found not liable for punitive damages
Punitive damages
Punitive damages or exemplary damages are damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit...
in Illinois Cook County Circuit Court but agreed to pay compensatory damages estimated at $35 to $40 million.
In 1985 American Stores sold the White Hen chain, since convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
s did not fit into the company’s plans. Buttrey Food & Drug
Buttrey Food & Drug
Buttrey Food & Drug was a chain of grocery stores founded in Havre, Montana and formerly headquartered in Great Falls, Montana. The company was founded in 1896 as a chain of department stores branded Buttrey Department Store. The company opened grocery stores in 1935 and sold off its department...
and Star Market
Shaw's Supermarkets
Shaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
were put up for sale in order to raise capital and pay down debt. Although the company continued to operate these subsidiaries, investment in remodeling and new construction for these stores and for Acme Markets was minimal throughout the 1980s.
By 1987 American Stores Company was the largest drug retailer in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, but only the third-largest grocery retailer and underperforming its peers. In October 1987, the company exited the Idaho
Idaho
Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
and Washington drugstore markets with the sale of 25 Osco Drug
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
units to Pay Less Drug Stores
Thrifty PayLess
Thrifty PayLess Holdings, Inc. was a pharmacy holding company that owned the Thrifty Drugs and PayLess Drug Stores chains in the western United States....
.
Acquisition of Lucky Stores, Inc.
In March 1988, American Stores made an unsolicited tender offer for Lucky StoresLucky Stores
Lucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
, an Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
competitor noted for high efficiency and low prices. American Stores’ Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
chain in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
was struggling, plagued by high prices and a reputation for poor service. At the time, Lucky was California's leading grocery retailer, due in part that it was the only chain with a significant presence in both northern California
Northern California
Northern California is the northern portion of the U.S. state of California. The San Francisco Bay Area , and Sacramento as well as its metropolitan area are the main population centers...
and southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
. Lucky refused American Stores' first offer. Within a month, American Stores proposed to up its bid if Lucky would agree to a friendly takeover. Again Lucky management rejected the offer as inadequate and was said to be contemplating defensive strategies. Later, American Stores upped its bid to $2.5 billion, or $65 per share. Lucky accepted and American Stores was on track to become the largest supermarket chain in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, over the Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
and Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
chains.
In August 1988, California Attorney General John Van de Kamp
John Van de Kamp
John Kalar Van de Kamp is an American politician. He served as Los Angeles County District Attorney from 1975 until 1981, and then as 28th Attorney General of California from 1983 until 1991....
asked the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
to void the sale, claiming that a Lucky-Alpha Beta juggernaut would cost California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
consumers $400 million by reducing competition. The Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
refused but did force the divestiture of 37 Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
stores, which were sold in December 1988, the same month 38 Lucky stores in Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
were also sold. Van de Kamp then took his case to court, and on September 1988, a federal judge in Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
issued a preliminary injunction
Preliminary injunction
A preliminary injunction, in equity, is an injunction entered by a court prior to a final determination of the merits of a legal case, in order to restrain a party from going forward with a course of conduct or compelling a party to continue with a course of conduct until the case has been decided...
against the merger. American Stores appealed, and in April 1989, an appeals court judge in San Francisco, California
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
overturned the injunction. Van de Kamp appealed this reversal to the U.S. Supreme Court; meanwhile, American Stores continued to plan its assimilation of Lucky
Lucky Stores
Lucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
. The U.S. Supreme Court in April 1990 ruled in favor of the California attorney general. Wishing to avoid additional lengthy litigation, the following month American Stores reached an agreement with Van de Kamp
John Van de Kamp
John Kalar Van de Kamp is an American politician. He served as Los Angeles County District Attorney from 1975 until 1981, and then as 28th Attorney General of California from 1983 until 1991....
whereby the company was allowed to convert 14 Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
stores to the Lucky name but also had to sell 161 southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
stores (152 Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
stores and 9 Lucky stores
Lucky Stores
Lucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
) within 5 years. The deal put no restrictions on American Stores' future growth in California and did not require state approval of the buyer or terms of the sale.
Headquarters move to Southern California
Based on a recommendation by Booz-AllenBooz Allen Hamilton
Booz Allen Hamilton Inc. , or more commonly Booz Allen, is an American public consulting firm headquartered in McLean, Fairfax County, Virginia, with 80 other offices throughout the United States. Ralph Shrader is its Chairman and Chief Executive Officer. The firm was founded by Edwin Booz in...
, American Stores relocated its corporate headquarters from Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
to Irvine, California
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...
in July 1988. At the time, the company indicated the reason for the move was to place the headquarters in one of the company’s major operating market areas and therefore closer to its business interests. However, the corporate headquarters was moved back to Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
in 1989 with little explanation.
Sav-on Name Change
American Stores plans to build a coast-to-coast drugstore chain in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
were underway. The strategy was to build a nationwide network of pharmacies, streamline operations and advertising in order to gain national recognition for the brand, especially for the high-margin private label products. The name Osco Drug
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
was chosen as the national chain banner because of the large number of stores which already had that name and existed in various parts of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The name change was completed for the Skaggs drugstores in 1985 and then for the Sav-on stores in 1986. The name "Osco" did not resonate well with Sav-on's southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
customer base. American Stores eventually made the decision to change the name of the former Sav-on stores back to Sav-on Drugs. Rumors circulated at the time claiming that the reason for the name change back to ‘Sav-on’ was due to "Osco" having the same pronunciation as the Spanish word "asco" (oss-ko) which means disgust or loathing, a considerable factor within southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
’s heavily Hispanic market. Ironically, American Stores abbreviated is "ASCO". This explanation for the name change was refuted by American Stores. The name change on all stores was completed in 1989 and the Sav-on Drugs brand was re-launched in southern California
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
and Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
.
American Drug Stores, Inc.
In 1989, a new subsidiary American Drug Stores, Inc. was formed and consisted of American Stores drugstore holdings of Osco DrugOsco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
, Sav-on Drugs, the Osco side of the Jewel-Osco food-drug combination stores and RxAmerica. RxAmerica began earlier in 1989 as a mail service prescription fulfillment center with a facility in Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
.
Jewel-Osco Florida
In April 1989, the company opened a 75,000-square-foot Jewel-Osco combination store in Largo, FloridaLargo, Florida
Largo is the third largest city in Pinellas County, Florida, USA and is part of the Tampa Bay Area. Centrally located, it is the crossroads of the county. As of the 2000 census, the City had a total population of 69,371. As of 2004, the population estimated by the U.S. Census Bureau was...
. This marked American Stores’ re-entry into the Southeast after an absence of nearly two decades. Mark S. Skaggs, son of Sam Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
was president of the new Jewel-Osco of Florida division. This was a wholly separate division of the company and was not part of the Jewel Food Stores
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
chain in the Midwest or the American Drug Stores
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
subsidiary. Unlike the combination stores in the Midwest, where Jewel ran the food side of the combination stores and Osco ran the drug side, the Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
stores were run by a one overall manager, similar to the way a Skaggs Alpha Beta store was managed. Only six Jewel-Osco stores were opened in Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
and all were sold to Albertsons in 1992.
1990s
In the early 1990s, reducing the $3.4 billion in debt load became the prime challenge for the company; doing so was mainly accomplished through asset sales. By the end of fiscal 1992 long term debt was down from $3.4 billion to $2.1 billion.Divestitures
In the early 1990s, American Stores divestitures included:- October 1990: 44 Buttrey Food & DrugButtrey Food & DrugButtrey Food & Drug was a chain of grocery stores founded in Havre, Montana and formerly headquartered in Great Falls, Montana. The company was founded in 1896 as a chain of department stores branded Buttrey Department Store. The company opened grocery stores in 1935 and sold off its department...
stores located in MontanaMontanaMontana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
, WyomingWyomingWyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...
, Washington, IdahoIdahoIdaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state....
, and North DakotaNorth DakotaNorth Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S....
by a management-led $184 million leveraged buyoutLeveraged buyoutA leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
. - June 1991: 51 Osco DrugOsco DrugOsco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
stores in ColoradoColoradoColorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, UtahUtahUtah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
, and WyomingWyomingWyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High...
sold to Pay Less Drug StoresThrifty PayLessThrifty PayLess Holdings, Inc. was a pharmacy holding company that owned the Thrifty Drugs and PayLess Drug Stores chains in the western United States....
, at that time a division of Kmart CorporationKmartKmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, for $60 million. - June 1991: 152 unit Alpha BetaAlpha BetaAlpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
chain sold to the Yucaipa Companies for $251 million. - October 1991: 74 newly rebranded and remodeled TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, OklahomaOklahomaOklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
, FloridaFloridaFlorida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
and ArkansasArkansasArkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
Jewel-Osco combination stores for $454 million to Albertsons, Inc. Earlier in 1991 and prior to the announcement of the sale, American Stores had remodeled and renamed these stores from Skaggs-Alpha Beta to Jewel-Osco. The 11 Jewel-Osco New MexicoNew MexicoNew Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
stores were retained by American Stores and operated as Jewel-Osco Southwest, Inc., a subsidiary separate from the Jewel Food StoresJewel (supermarket)Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
chain in the Midwest. - The company also put its 275 unit Acme Markets chain on the block in early 1991, but shortly thereafter decided not to sell Acme Markets, apparently because the bids received were not deemed sufficient.
- November 1994, the Star MarketShaw's SupermarketsShaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
grocery division, fifth in market share in the Greater BostonGreater BostonGreater Boston is the area of the Commonwealth of Massachusetts surrounding the city of Boston. Due to ambiguity in usage, the size of the area referred to can be anywhere between that of the metropolitan statistical area of Boston and that of the city's combined statistical area which includes...
area, consisting of 33 food stores in MassachusettsMassachusettsThe Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
and Rhode IslandRhode IslandThe state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
was sold to Investcorp Bank, an international investment bank for $288 million in cash and the assumption of substantially all of its outstanding liabilities. American Stores deemed Star MarketShaw's SupermarketsShaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
expendable because the company wanted to focus on markets where it held first or second place in market share. - January 1995, the company sold 45 Acme Markets located in New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and northern PennsylvaniaPennsylvaniaThe Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
to the Penn Traffic CompanyPenn TrafficThe Penn Traffic Company was the parent company for 79 retail grocery supermarkets in the Northeastern United States, concentrating mostly in Central New York. Its headquarters were in Syracuse, New York. Penn Traffic formerly had supermarkets also in Pennsylvania, Vermont and New Hampshire...
for $94 million.
Acquisitions
At the same time that the company was making major divestments in the early 1990s, American Stores also looked for opportunities to make strategic minor acquisitions, ones that would enhance its position in the main markets where it needed to strengthen market share.- The company's CaliforniaCaliforniaCalifornia is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
drugstore operations were enhanced through the early 1992 $60 million purchase of 85 CVS StoresCVS CorporationCVS Pharmacy, or simply CVS, is the second largest pharmacy chain in the United States , with over 7,000 stores in 41 states and Puerto Rico...
(63 CVS Pharmacy drugstores and the rights to operate 22 CVS health and beauty aid stores) from the Melville CorporationMelville CorporationMelville Corporation, formerly based in Rye, New York, was a large retail holding corporation incorporated in 1922 as the Melville Shoe company by Ward Melville. It changed its name to CVS Corporation in 1996...
. These stores converted to the Sav-on Drugs and Sav-on Express banners. Later that year, 30 ThriftyThrifty PayLessThrifty PayLess Holdings, Inc. was a pharmacy holding company that owned the Thrifty Drugs and PayLess Drug Stores chains in the western United States....
and Rx Plus drugstores in ArizonaArizonaArizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
and NevadaNevadaNevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
were acquired. - The following year the Midwest region received a boost when Reliable Drug (a 55 unit chain) in IndianaIndianaIndiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
, IllinoisIllinoisIllinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, IowaIowaIowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New...
, KansasKansasKansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south...
, and MissouriMissouriMissouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
was bought. These stores were soon re-bannered as Osco DrugOsco DrugOsco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
stores. - February 1995, American Stores spent about $37 million for 17 Clark Drug stores in southern CaliforniaSouthern CaliforniaSouthern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...
, which were then converted to the Sav-on Drugs name.
Transformation into an Operating Company
American Stores had long been run as a decentralized holding companyHolding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
, but in order to compete in the fierce retail environment of the 1990s the company announced plans in 1992 to transform itself into an integrated operating company. As part of this transition, the company also began to centralize companywide its procurement, warehousing, inventory control, distribution, marketing, payroll and human resources operations. Another aspect of the plan involved the consolidation of the central support organizations of the drugstore and grocery store operations. At the same time, American Stores sought to initiate faster growth, this time primarily through the opening of new stores and not through acquisitions. This ambitious plan to create better efficiencies won a lot of support from investors. The plan, called the Delta Project, was expected to turn American Stores into a more profitable national supermarket company with greater shareholder value by centralizing its buying operations, as well as putting together more food and drugstore combination stores.
From 1992 up through 1998, American Stores consolidated operations and moved major responsibilities of their subsidiaries to their headquarters in Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
. The company’s employees based in Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
increased from fewer than 100 in 1992 to over 1,200 by 1998. During this period, American Stores itself did not operate any food or drugstores in Utah
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
having sold-off the Osco Drug
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
and Alpha Beta
Alpha Beta
Alpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
Utah stores in 1991.
Super Saver Food
In early 1994, American Stores launched a discount warehouse food store concept in CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. New store formats were built in Anaheim
Anaheim, California
Anaheim is a city in Orange County, California. As of the 2010 United States Census, the city population was about 365,463, making it the most populated city in Orange County, the 10th most-populated city in California, and ranked 54th in the United States...
, Indio
Indio, California
Indio is a city in Riverside County, California, United States, located in the Coachella Valley of Southern California's Colorado Desert region. It lies east of Palm Springs, east of Riverside, and east of Los Angeles. It is about north of Mexicali, Baja California on the U.S.-Mexican border...
, National City
National City, California
National City is a city in San Diego County, California. The population was 58,582 at the 2010 census, up from 54,260 at the 2000 census. National City is the second oldest city in San Diego County and has a historic past.-History:...
, Oceanside
Oceanside, California
-2010:The 2010 United States Census reported that Oceanside had a population of 167,086. The population density was 3,961.8 people per square mile...
and several existing Lucky stores were converted to this warehouse format in Sacramento
Sacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
, Pittsburg
Pittsburg, California
Pittsburg is a city located in eastern Contra Costa County, California, the outer portion of the East Bay region of the San Francisco Bay Area. The population was 63,264 at the 2010 census....
, Vacaville
Vacaville, California
Vacaville, California is a city located in the northeastern portion of the San Francisco Bay Area in Solano County. The city is nearly half way between Sacramento and San Francisco on I-80. It sits approximately from Sacramento, and from San Francisco...
, and Woodland
Woodland, California
Woodland is the county seat of Yolo County, California, located approximately northwest of Sacramento, and is a part of the Sacramento - Arden-Arcade - Roseville Metropolitan Statistical Area. The population was 55,468 at the 2010 census.Woodland's origins trace back to 1850 when California...
. Initially, these stores were named Price Advantage, based on a Lucky Advantage prototype store in Escondido, California
Escondido, California
Escondido is a city occupying a shallow valley ringed by rocky hills, just north of the city of San Diego, California. Founded in 1888, it is one of the oldest cities in San Diego County. The city had a population of 143,911 at the 2010 census. Its municipal government set itself an operating...
. Price Club
Price Club
Price Club was the pioneer of the warehouse store. Founded by Sol Price in San Diego, California in 1976, the company charged shoppers a $25 annual membership fee to purchase bulk products at discount prices in a no-frills warehouse setting. Price Club's high sales volume enabled Price to give his...
sued American Stores over name infringement
Copyright infringement
Copyright infringement is the unauthorized or prohibited use of works under copyright, infringing the copyright holder's exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works.- "Piracy" :...
shortly before the grand opening of the stores. The stores were swiftly renamed Food Advantage the night before grand openings, with the word "Price" marked out with a thick ink marker on every label, tag and sign in the store. In the coming months these stores were branded as Food/Price Advantage and finally as Super Saver Food
Super Saver Foods
Super Saver Foods is a United States price-impact grocery franchise. It is currently owned by Albertsons LLC. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
. Super Saver Food
Super Saver Foods
Super Saver Foods is a United States price-impact grocery franchise. It is currently owned by Albertsons LLC. It is a no-frills grocery store where the customers bag their own groceries at the checkout...
was a familiar brand which had been used in the 1970s and early 1980s by Acme for their discount grocery store format in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
and was a trademark still owned by American Stores.
Kap's Kitchen and Pantry
In 1997, the company opened Kap's Kitchen and Pantry in Salt Lake City, UtahSalt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
a prototype for entry into the high end food retail market with selections of natural and organic products, produce, seafood, grocery, meat and poultry, bakery and prepared foods. The venture was quickly abandoned and the store was closed within a year.
Skaggs Family Exit
In 1994, at the company’s annual shareholder meeting, the company board elected Sam Skaggs’ son Don L. Skaggs a director effective October 1, 1994 to fill the position rendered vacant by the resignation of Aline W. Skaggs, wife of Sam SkaggsSkaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
. Don L. Skaggs was also the Executive Vice President and General Manager of Skaggs Telecommunications Service, Inc. a non-retail subsidiary of American Stores consisting of an audio media production company, a satellite teleport U.S. Satellite Corporation and an operation that sold equipment to law enforcement agencies. 72 year-old Sam Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
relinquished the chairmanship of American Stores to Victor L. Lund in 1995. Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
still held an 18.3 percent stake in the company and a seat on the company board, and when he announced in July 1996 that he was exploring options for his stake, speculation about a possible takeover ran wild. The company was not certain if Skaggs’ intention was to launch a proxy fight for control of American Stores or to alter its current management or direction. By February 1997 an agreement was reached between American Stores and Skaggs whereby the company would repurchase about 12.2 million of Skaggs's shares for $550 million, with the remaining shares subsequently be sold to the public through a secondary offering. This purchase reduced Skaggs
Skaggs family
]The Skaggs Family, starting from a small frontier town in southern Idaho, came to have an important impact on merchandising across much of the United States. During most of the 20th century, the Skaggs name became prominent on hundreds of store fronts throughout the West...
’ stake in the company to five percent, insufficient ownership for him and his family members to retain seats on the company's board.
Acquisition by Albertsons
At the company's June 17, 1998 annual meeting of shareholders in Salt Lake City, UtahSalt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
, American Stores highlighted its accomplishments over the past year and its plans for the sustained long-term growth. In his keynote address, chairman and chief executive officer Victor L. Lund said, "During the past year, we have transformed many of our key plans for the future to reality. We are confident that our plan for growth is working and is squarely on track. We've set our sights very high because we know our visions of tomorrow will be achieved". A day earlier, American Stores had held a ceremony marking the opening of the American Stores Center, its 24 story corporate office building in downtown Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
. The building had a company-owned Italian restaurant, Il Sansovino and a convenience store, the The American Store, on the ground level floor.
Six weeks later, on August 3, 1998 it was announced that Albertsons would acquire American Stores for $11.7 billion. Soon after the announcement, the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
charged that Albertsons' proposed acquisition of American Stores would substantially lessen supermarket competition in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
and New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
. The proposed acquisition, the FTC charged, could result in higher prices or reduced quality and selection for consumers. As a condition of the sale, Albertsons and American Stores agreed to sell 144 supermarkets (104 Albertson's supermarkets, 40 American Stores' Lucky supermarkets) in 57 markets in order to resolve. The divestiture agreement, was the largest retail divestiture ever required by the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
. Due to the mandated sale of stores, the acquisition took nearly a year to complete. In June 1999, the acquisition was complete, ASC was de-listed on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
and American Stores ceased to exist.
During 1999, the drugstore operations division and general merchandise procurement functions were moved from Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
to Scottsdale, Arizona
Scottsdale, Arizona
Scottsdale is a city in the eastern part of Maricopa County, Arizona, United States, adjacent to Phoenix. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385...
operating as Albertsons Drug Region. The functions which supported the food divisions were consolidated and moved from Salt Lake City, Utah
Salt Lake City, Utah
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake or SLC. With a population of 186,440 as of the 2010 Census, the city lies in the Salt Lake City metropolitan area, which has a total population of 1,124,197...
to Albertsons headquarters in Boise, Idaho
Boise, Idaho
Boise is the capital and most populous city of the U.S. state of Idaho, as well as the county seat of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan area and is the largest city between Salt Lake City, Utah and Portland, Oregon.As of the 2010 Census Bureau,...
. For a short time after the acquisition of American Stores, Albertsons leased several floors of the American Stores Center building to the International Olympic Committee
International Olympic Committee
The International Olympic Committee is an international corporation based in Lausanne, Switzerland, created by Pierre de Coubertin on 23 June 1894 with Demetrios Vikelas as its first president...
- Utah had been awarded the 2002 Winter Olympics
2002 Winter Olympics
The 2002 Winter Olympics, officially the XIX Olympic Winter Games, were a winter multi-sport event that was celebrated in February 2002 in and around Salt Lake City, Utah, United States. Approximately 2,400 athletes from 77 nations participated in 78 events in fifteen disciplines, held throughout...
. The building is now owned by Wells Fargo
Wells Fargo
Wells Fargo & Company is an American multinational diversified financial services company with operations around the world. Wells Fargo is the fourth largest bank in the U.S. by assets and the largest bank by market capitalization. Wells Fargo is the second largest bank in deposits, home...
.
For a very short time after the American Stores acquisition was completed, Albertsons was the largest food/drug chain in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
operating nearly 2,500 stores in 40 states. Albertsons preserved the Acme, Jewel-Osco
Jewel (supermarket)
Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
, Osco Drug
Osco Drug
Osco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
and Sav-on Drugs namesakes. Shortly after the sale, Albertsons rebranded the Lucky
Lucky Stores
Lucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
stores under the Albertsons name because both chains had stores and overlap in northern and southern California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. (The Lucky
Lucky Stores
Lucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
brand would be revived in 2006 by SuperValu
Supervalu (United States)
SuperValu Inc. is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States , and ranks #51 on the Fortune 100 list.On June 2, 2006,...
).
2006 Albertsons Break-up
On June 2, 2006, the sale of Albertsons essentially split the company into three parts.- CVS CorporationCVS CorporationCVS Pharmacy, or simply CVS, is the second largest pharmacy chain in the United States , with over 7,000 stores in 41 states and Puerto Rico...
purchased the 700 free-standing drug stores (Osco Drug and Sav-on Drugs). By 2007 these stores were rebranded as CVS Pharmacy.
- A CerberusCerberus Capital ManagementCerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
-led group of investors, (who included Kimco Realty CorporationKimco Realty CorporationKimco Realty Corporation, , a Real Estate Investment Trust , owns and operates North America’s largest portfolio of neighborhood and community shopping centers. As of September 30, 2011, the company owned interests in 937 shopping center properties comprising 137,100,000 sqft of leasable space...
, Schottenstein Stores Corp.Schottenstein Stores Corp.Schottenstein Stores Corp., based in Columbus, Ohio, is a holding company for various ventures of the Schottenstein family. Jerome Schottenstein and Jay Schottenstein are two of the primary holders in the company.-Retail Ventures:...
, Lubert-Adler Partners, and Klaff Realty) purchased the Albertsons stores in northern CaliforniaNorthern CaliforniaNorthern California is the northern portion of the U.S. state of California. The San Francisco Bay Area , and Sacramento as well as its metropolitan area are the main population centers...
, ColoradoColoradoColorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, TexasTexasTexas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
, OklahomaOklahomaOklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
, FloridaFloridaFlorida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, ArizonaArizonaArizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
, and New MexicoNew MexicoNew Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
forming a new corporation called Albertsons LLCAlbertsons LLCAlbertsons LLC is a North American grocery company based in Boise, Idaho, with over 240 supermarkets located in Arizona, New Mexico, Colorado, Texas, Louisiana, Arkansas, and Florida under the Albertson's and Super Saver Foods banners...
. Many of these stores have since been sold to other grocery chains or closed altogether.
- SuperValuSupervalu (United States)SuperValu Inc. is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States , and ranks #51 on the Fortune 100 list.On June 2, 2006,...
purchased the JewelJewel (supermarket)Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
, Acme, Shaw'sShaw's SupermarketsShaw's, along with companion store Star Market, are wholly owned subsidiaries of Eden Prairie, Minnesota-based SuperValu. Together, Shaw's and Star Market comprise the third-largest grocery chain headquartered in New England; behind Stop & Shop and Hannaford, although Shaw’s is the largest grocery...
divisions and the remaining Albertsons stores not acquired by CerberusCerberus Capital ManagementCerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
. SuperValuSupervalu (United States)SuperValu Inc. is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States , and ranks #51 on the Fortune 100 list.On June 2, 2006,...
retains the Osco and Sav-on drug trademarks allowing the pharmacies in their grocery stores to remain branded as Sav-on Pharmacy or Osco Pharmacy.
Both SuperValu
Supervalu (United States)
SuperValu Inc. is a United States grocery retailer and distributor. The corporation, headquartered in Eden Prairie, Minnesota, has been in business for over a century. It is the third-largest food retailing company in the United States , and ranks #51 on the Fortune 100 list.On June 2, 2006,...
and Albertsons LLC
Albertsons LLC
Albertsons LLC is a North American grocery company based in Boise, Idaho, with over 240 supermarkets located in Arizona, New Mexico, Colorado, Texas, Louisiana, Arkansas, and Florida under the Albertson's and Super Saver Foods banners...
use the Albertsons store banner name.
Alumni Information
On LinkedIn, there is an American Stores Alumni Group established for former ASC employees.The drugstore division has an Alumni Club website where membership is open to current employees, retirees and former employees of Osco Drug, Jewel Osco, Sav-on Drugs and affiliated companies - both past and present: Supervalu, Albertsons, American Stores Company, American Drug Stores, Buttrey Food & Drug, Skaggs Drug Centers, Jewel Food Companies, Republic Lumber, Turn*Style, RxAmerica, Health'n'Home.
External references
- American Stores Company History
- U.S. Chain Store Timeline
- New York Times published: March 25, 1988 American Stores Head A Reclusive Bidder
- Business Network published: April 3, 1989 Jewel Osco dazzles Tampa with sparkling new format
- New York Times published: May 17, 1990 American Stores' Merger Settlement
- New York Times published: October 1, 1994 American Stores is Selling 45 Acme Markets
- Edgar Online published: April 26, 1995: SEC Filing, filed by AMERICAN STORES CO
- Edgar Online published: June 21, 1995 American Stores Notice of Annual Meeting of Shareholders
- Business Network published: July 8, 1996 American Stores awaits founder Skaggs' next move
- New York Times published: August 28, 1996 - It's a Clashing of the Guard (Old vs. New) at American Stores
- Chain Drug Review published March 17, 1997 Skaggs family to sell its stake in American Stores
- Press Release Newswire: June 17, 1998 American Stores Company Highlights Accomplishments During the Past Year and Vision for the Future
- FTC Complaint: In the Matter of ALBERTSON'S, INC., a corporation; and AMERICAN STORES COMPANY, a corporation
- FTC Release: June 22, 1999 Agreement with Albertson's and American Stores Requires Selling of 144 Stores in Order to Preserve Supermarket Competition in California, Nevada and New Mexico
External links
- Acme Markets for a history of Acme Markets.
- Alpha BetaAlpha BetaAlpha Beta was a chain of supermarkets. Former Alpha Beta stores have all been purchased by other grocery chains and rebranded.-History:Before Alpha Beta was the name a of store, it was the name of a marketing concept used in grocery stores founded by Albert and Hugh Gerrard; it referred to...
for a history of Alpha Beta. - Buttrey Food StoresButtrey Food & DrugButtrey Food & Drug was a chain of grocery stores founded in Havre, Montana and formerly headquartered in Great Falls, Montana. The company was founded in 1896 as a chain of department stores branded Buttrey Department Store. The company opened grocery stores in 1935 and sold off its department...
for a history of Buttrey Food Stores. - Jewel Food StoresJewel (supermarket)Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 182 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana.Jewel-Osco and Jewel are currently wholly owned subsidiaries of Eden Prairie,...
for a history of Jewel Food Stores. - Lucky Food StoresLucky StoresLucky Stores is an American supermarket chain founded in Alameda County, California in 1935. Lucky is currently operated by SuperValu in Southern California and Nevada and by Save Mart in Northern California and Nevada.In 1998, Lucky's parent company, American Stores, was taken over by Albertsons,...
for a history of Lucky Food Stores. - Osco DrugOsco DrugOsco Drug is a chain of pharmacy stores which today operate as in-store pharmacies under SuperValu Pharmacies. Osco Pharmacy is found in Jewel-Osco, Albertsons, Shaw's and Star Market, while Sav-on Pharmacy is found in Acme and Albertsons. Since 2006, Osco is a wholly owned subsidiary of...
for a history of Osco Drug. - Star MarketStar MarketStar Market was a New England chain of supermarkets owned by the Mugar family and based in Greater Boston. The company was sold to The Jewel Companies, Inc. in 1964, and was later sold to Investcorp, which sold the chain to Shaw's Supermarkets...
for a history of Star Market.