Osco Drug
Encyclopedia
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 Supervalu Pharmacies of Eden Prairie, Minnesota-based SuperValu
. The company at its height operated Osco Drug, Osco Pharmacy, Sav-on Drugs, and Sav-on Pharmacy.
, a Baptist minister from Missouri settled in American Falls, Idaho
. Prices on all commodities in American Falls were high and Skaggs formulated a plan to overcome the problem. He opened a store himself, totally different from stores of the day. Skaggs reduced prices and offered a cash and carry
service with low margins to create high volume. S.M Skaggs had 12 children. The six sons: Pepper Oscar (O.P.), Marion Barton (M.B.), Loronzo L. (L.L), Samuel Olnie (L.S.), Levi Justin (L.J.), and Aron Sylvester (S.A.) helped with the operation of the store. In 1917, O.P Skaggs started his own chain of self-service stores and later sold the franchise in the western states to Christian Call (In 1945 Call would later open the first Sav-on store in San Bernardino, California). In 1919 brothers M.B., L.S., L.L., and L.J. formed a partnership called Skaggs United Stores. This company later became the Safeway
grocery chain and was led by M.B. Skaggs. L.J. Skaggs retired from Safeway in 1932 and in 1934 opened the first self-service drugstore in the United States in Tacoma, Washington
. He applied the principle of self-service that he had learned in the grocery business to his drugstore.
and was named “Pay-Less” (different from the drug chain Payless
founded later in the century), and was managed by George Hilden. The store remained in operation until 1987 and was later closed that year due to redevelopment in downtown Rochester.
In 1937, while in the process of opening a second store in Mason City, Iowa
it was learned that another company had already registered the name “Payless” in the state. L.L changed “Payless” to “Self-Service Drug, Inc.” and formed a new corporation.
to the Merchandise Mart
in Chicago, Illinois.
In 1961, The Jewel Companies, Inc. acquired the 31 Osco Drug stores in six Midwest states. In 1962, Osco's headquarters was moved from Chicago's Merchandise Mart to Melrose Park, Illinois
. It was also in that year that the first side-by-side "Jewel-Osco" store opened. The early Jewel-Osco combination (combo) stores were two individual stores, separated by an interior wall (and in some locations, a half-wall), allowing a customer to go back and forth between each store without having to go outside. Osco's merger with Jewel resulted in tremendous growth for Osco. Soon, all of Jewel's subsidiaries would have an Osco Drug. Some Eisner Food Stores
locations were rebranded "Eisner-Osco". When Jewel acquired Star Market
in 1964, the first Osco Drug in New England was opened, and some were next to Star Market locations and were branded as "Star-Osco". By 1968, Osco grew to 168 stores in sixteen states. During most of the 1960s, Osco operated as two divisions – 'City Osco', comprising the Chicago, Illinois and Chicago suburb stores and 'Country Osco' (all the other Oscos). These two divisions were combined in 1968 and formed Osco Drug, Inc. Also in 1968, Osco's headquarters relocated from Melrose Park, Illinois to Franklin Park, Illinois
. Later that year, the Jewel Imports procurement group was established to import a broad range of general merchandise from around the world to sell in Osco stores.
When The Jewel Companies Inc. acquired Buttrey Food Stores
in 1966, many of the stores were converted to a combination store format and bannered as "Buttrey-Osco" with common checkout stands but separate store management, all under one roof. By the early 1980s, Buttrey would eventually operate 60 stores in Montana
, North Dakota
, South Dakota
, western Minnesota
, Wyoming
, eastern Washington, eastern Oregon
, Utah
, and Idaho
. Stores were spread thinly over a 2000 miles (3,218.7 km) wide territory.
Outside of Chicagoland, Osco operated as stand alone pharmacies (or free standing stores). In the early years, many of the Jewel and Osco combination stores maintained different operating hours from one another and on certain days such as holidays, one side of the combo store would be open, while the other would be closed. By the early 1980s new and remodeled combo stores had the 'wall' removed and the store became one, and to this day, Osco retains control over drug, general merchandise, pharmacy and liquor departments in the Jewel Osco combo stores.
In the late 1960s, Osco was looking into purchasing or building a photofinishing plant to service its stores. At the time, the company was using outside vendors and the film developing quality and service was not consistent. In 1970 working with Kodak, Osco built a photofinishing lab from scratch in Elgin, Illinois
. The facility, Crest Photo Lab opened in 1971 and serviced Osco's Chicagoland, Central and Eastern region stores. The Elgin photo lab expanded several times over the years. As both Osco and its photofinishing market share grew, three more photo plants were added: Alves Photo Service Braintree, Massachusetts
in 1980, Rich Photo Lab Salt Lake City, Utah
in 1984 and Drewry Photocolor Burbank, California
in 1987 renamed to Crest Photo in 1988. The photo labs were sold to Kodak's Qualex photo processing division in 1996 prompted by the emergence of in-store one hour photo labs and digital photography technology.
In 1974, Osco's headquarters were relocated from Franklin Park, Illinois to a new facility at 1818 Swift Drive in Oak Brook, Illinois
.
In November 1980, The Jewel Companies Inc. purchased Sav-on Drugs, Inc. Sav-on Drugs was headquartered in Anaheim, California
and had 150 stores in California
, Nevada
and Texas
. The Sav-on chain became Osco's 'Western Region'.
Company, which consisted of Alpha Beta
food stores in the west, Acme Markets in the east and Skaggs Drug Centers in the Rocky Mountain, southwestern, and northwestern states, acquired The Jewel Companies Inc.
In 1989, a new subsidiary American Drug Stores, Inc. was formed and consisted of American Stores
drugstore holdings of Osco Drug, 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
.
plans to build a coast-to-coast drugstore chain in the United States
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 "nausea" or "disgust", a considerable factor within southern California
’s heavily Hispanic market. Ironically, American Stores' initials were "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
.
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.
. Many drug division employees who relocated from Chicago to Salt Lake were subsequently relocated to Scottsdale, Arizona and back the Franklin Park facility following Albertsons' subsequent American Stores acquisition.
increasing market dominance. The Osco stores replacing the Jewel stores contained expanded food and produce presentations and were coined 'Osco Foodmarts'.
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.
In 2002, Albertsons sold its 84 free-standing Osco Drug stores in Massachusetts
, New Hampshire
and Maine
to the Jean Coutu Group
, a Canadian drugstore company. Jean Coutu rebranded the acquired Osco stores as Brooks Pharmacy
. Also in 2002, Albertsons, due to financial difficulties, closed several of its stores across the country including all stores in the Des Moines, Iowa
metro market.
In March 2005, Albertsons re-introduced the Osco brand name to the New England region by way of its Shaw's and Star Market pharmacies.
Both SuperValu
and Albertsons LLC
use the Albertsons store banner name.
Osco is now run under Supervalu Pharmacies
and is based in Eden Prairie, Minnesota
. Certain store support functions exist in the Franklin Park, Illinois
office.
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...
of pharmacy
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...
stores which today operate as in-store pharmacies under SuperValu Pharmacies
Supervalu Pharmacies
SuperValu Pharmacies is a wholly owned subsidiary of Eden Prairie, Minnesota-based SuperValu. SuperValu Pharmacy operates 950 pharmacies in Shop 'n Save, Hornbacher's, Farm Fresh Food & Pharmacy and Cub Foods stores.-Osco Pharmacy and Sav-on Pharmacy:...
. 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 Supervalu Pharmacies of Eden Prairie, Minnesota-based 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,...
. The company at its height operated Osco Drug, Osco Pharmacy, Sav-on Drugs, and Sav-on Pharmacy.
The Skaggs Family – Osco and Savon’s roots
The Osco story starts long before the first Osco was opened. In 1915, S.M. 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...
, a Baptist minister from Missouri settled in American Falls, Idaho
American Falls, Idaho
American Falls is a city in and the county seat of Power County, Idaho, United States. The population was 4,111 at the 2000 census. It is part of the Pocatello, Idaho Metropolitan Statistical Area.-History:...
. Prices on all commodities in American Falls were high and Skaggs formulated a plan to overcome the problem. He opened a store himself, totally different from stores of the day. Skaggs reduced prices and offered a cash and carry
Cash and carry (wholesale)
Cash and carry wholesale represents a type of operation within the wholesale sector. Its main features are summarized best by the following definitions:...
service with low margins to create high volume. S.M Skaggs had 12 children. The six sons: Pepper Oscar (O.P.), Marion Barton (M.B.), Loronzo L. (L.L), Samuel Olnie (L.S.), Levi Justin (L.J.), and Aron Sylvester (S.A.) helped with the operation of the store. In 1917, O.P Skaggs started his own chain of self-service stores and later sold the franchise in the western states to Christian Call (In 1945 Call would later open the first Sav-on store in San Bernardino, California). In 1919 brothers M.B., L.S., L.L., and L.J. formed a partnership called Skaggs United Stores. This company later became the 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...
grocery chain and was led by M.B. Skaggs. L.J. Skaggs retired from Safeway in 1932 and in 1934 opened the first self-service drugstore in the United States in Tacoma, Washington
Tacoma, Washington
Tacoma is a mid-sized urban port city and the county seat of Pierce County, Washington, United States. The city is on Washington's Puget Sound, southwest of Seattle, northeast of the state capital, Olympia, and northwest of Mount Rainier National Park. The population was 198,397, according to...
. He applied the principle of self-service that he had learned in the grocery business to his drugstore.
The first store
Loronzo L. (L.L.) Skaggs owned a controlling stock in a company called Quality Food in Minnesota and subsequently left the Safeway business. L.L. opened a chain of self-service drugstores in the Midwest similar to his brother L.J.’s stores in the west. The first store opened in 1937 in Rochester, MinnesotaRochester, Minnesota
Rochester is a city in the U.S. state of Minnesota and is the county seat of Olmsted County. Located on both banks of the Zumbro River, The city has a population of 106,769 according to the 2010 United States Census, making it Minnesota's third-largest city and the largest outside of the...
and was named “Pay-Less” (different from the drug chain Payless
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....
founded later in the century), and was managed by George Hilden. The store remained in operation until 1987 and was later closed that year due to redevelopment in downtown Rochester.
In 1937, while in the process of opening a second store in Mason City, Iowa
Mason City, Iowa
Mason City is the county seat of Cerro Gordo County, Iowa, United States. The population was 28,079 in the 2010 census, a decline from 29,172 in the 2000 census. The Mason City Micropolitan Statistical Area includes all of Cerro Gordo and Worth counties....
it was learned that another company had already registered the name “Payless” in the state. L.L changed “Payless” to “Self-Service Drug, Inc.” and formed a new corporation.
Name change to Osco
In 1942, the corporation “Self-Service Drug, Inc.” was dissolved and succeeded by "Owners Service Company", a partnership of L.L Skaggs, H.B. Finch, Paul Stratton and George Hilden. From this company 'Osco' was coined. That year Osco moved its headquarters from Waterloo, IowaWaterloo, Iowa
Waterloo is a city in and the county seat of Black Hawk County, Iowa, United States. As of the 2010 United States Census the population decreased by 0.5% to 68,406. Waterloo is part of the Waterloo – Cedar Falls Metropolitan Statistical Area, and is the more populous of the two...
to the Merchandise Mart
Merchandise Mart
When opened in 1930, the Merchandise Mart or the Merch Mart, located in the Near North Side, Chicago, Illinois, was the largest building in the world with of floor space. Previously owned by the Marshall Field family, the Mart centralized Chicago's wholesale goods business by consolidating vendors...
in Chicago, Illinois.
The Jewel Companies, Inc.
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...
. It was also in that year that the first side-by-side "Jewel-Osco" store opened. The early Jewel-Osco combination (combo) stores were two individual stores, separated by an interior wall (and in some locations, a half-wall), allowing a customer to go back and forth between each store without having to go outside. Osco's merger with Jewel resulted in tremendous growth for Osco. Soon, all of Jewel's subsidiaries would have an Osco Drug. Some Eisner Food Stores
Eisner Food Stores
Eisner Food Stores was a chain of supermarkets in Downstate Illinois. It was acquired by The Jewel Companies, Inc. in 1957. The Eisner stores were rebranded Jewel in 1981.-History:...
locations were rebranded "Eisner-Osco". When Jewel acquired Star Market
Star Market
Star 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...
in 1964, the first Osco Drug in New England was opened, and some were next to Star Market locations and were branded as "Star-Osco". By 1968, Osco grew to 168 stores in sixteen states. During most of the 1960s, Osco operated as two divisions – 'City Osco', comprising the Chicago, Illinois and Chicago suburb stores and 'Country Osco' (all the other Oscos). These two divisions were combined in 1968 and formed Osco Drug, Inc. Also in 1968, Osco's headquarters relocated from Melrose Park, Illinois to Franklin Park, Illinois
Franklin Park, Illinois
Franklin Park is a village in Cook County, Illinois, United States. The population was 19,800 at the 2004 census.-Geography:Franklin Park is located at ....
. Later that year, the Jewel Imports procurement group was established to import a broad range of general merchandise from around the world to sell in Osco stores.
When The Jewel Companies Inc. acquired 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...
in 1966, many of the stores were converted to a combination store format and bannered as "Buttrey-Osco" with common checkout stands but separate store management, all under one roof. By the early 1980s, Buttrey would eventually operate 60 stores in Montana
Montana
Montana 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,...
, North Dakota
North Dakota
North 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....
, South Dakota
South Dakota
South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over...
, western Minnesota
Minnesota
Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
, Wyoming
Wyoming
Wyoming 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...
, eastern Washington, eastern Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
, 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...
, and 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....
. Stores were spread thinly over a 2000 miles (3,218.7 km) wide territory.
Outside of Chicagoland, Osco operated as stand alone pharmacies (or free standing stores). In the early years, many of the Jewel and Osco combination stores maintained different operating hours from one another and on certain days such as holidays, one side of the combo store would be open, while the other would be closed. By the early 1980s new and remodeled combo stores had the 'wall' removed and the store became one, and to this day, Osco retains control over drug, general merchandise, pharmacy and liquor departments in the Jewel Osco combo stores.
In the late 1960s, Osco was looking into purchasing or building a photofinishing plant to service its stores. At the time, the company was using outside vendors and the film developing quality and service was not consistent. In 1970 working with Kodak, Osco built a photofinishing lab from scratch in Elgin, Illinois
Elgin, Illinois
Elgin is a city in northern Illinois located roughly northwest of Chicago on the Fox River. Most of Elgin lies within Kane County, Illinois, with a portion in Cook County, Illinois...
. The facility, Crest Photo Lab opened in 1971 and serviced Osco's Chicagoland, Central and Eastern region stores. The Elgin photo lab expanded several times over the years. As both Osco and its photofinishing market share grew, three more photo plants were added: Alves Photo Service Braintree, Massachusetts
Braintree, Massachusetts
The Town of Braintree is a suburban city in Norfolk County, Massachusetts, United States. Although officially known as a town, Braintree adopted a municipal charter, effective 2008, with a mayor-council form of government and is considered a city under Massachusetts law. The population was 35,744...
in 1980, Rich Photo Lab 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 1984 and Drewry Photocolor Burbank, California
Burbank, California
Burbank is a city in Los Angeles County in Southern California, United States, north of downtown Los Angeles. The estimated population in 2010 was 103,340....
in 1987 renamed to Crest Photo in 1988. The photo labs were sold to Kodak's Qualex photo processing division in 1996 prompted by the emergence of in-store one hour photo labs and digital photography technology.
In 1974, Osco's headquarters were relocated from Franklin Park, Illinois to a new facility at 1818 Swift Drive in 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:...
.
Acquisition of Sav-on Drugs
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...
and had 150 stores 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 Texas
Texas
Texas 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...
. The Sav-on chain became Osco's 'Western Region'.
American Stores Company
In 1984, American StoresAmerican Stores
American Stores Company was an American public corporation and a holding company which ran chains of supermarkets and drugstores in the United States from 1917 through 1999...
Company, which consisted of 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...
food stores in the west, Acme Markets in the east and Skaggs Drug Centers in the Rocky Mountain, southwestern, and northwestern states, acquired The Jewel Companies Inc.
American Drug Stores, Inc.
In 1989, a new subsidiary American Drug Stores, Inc. was formed and consisted of American Stores
American Stores
American Stores Company was an American public corporation and a holding company which ran chains of supermarkets and drugstores in the United States from 1917 through 1999...
drugstore holdings of Osco Drug, 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...
.
Sav-on rebranding and relaunching
American StoresAmerican Stores
American Stores Company was an American public corporation and a holding company which ran chains of supermarkets and drugstores in the United States from 1917 through 1999...
plans to build a coast-to-coast drugstore chain in the United States
United 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 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
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 "nausea" or "disgust", 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' initials were "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...
.
Sav-on Express, Reliable Drug, Clark Drug
At the same time that the company was making major divestments in the early 1990s, American StoresAmerican Stores
American Stores Company was an American public corporation and a holding company which ran chains of supermarkets and drugstores in the United States from 1917 through 1999...
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 Drug stores. - February 1995, American StoresAmerican StoresAmerican Stores Company was an American public corporation and a holding company which ran chains of supermarkets and drugstores in the United States from 1917 through 1999...
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.
Consolidation of operations
In 1992, American Stores shifted its strategy from that of a holding company to a centralized operating company. As a result of the decision, common functions among American Stores' operating divisions (procurement, distribution logistics, payroll, human resources, etc.) would be removed from the operating divisions, consolidated and run centrally. From 1992 up through 1998, American Stores consolidated operations and moved responsibilities of their division offices to their headquarters in Salt Lake City, Utah. Although 'American Stores' food divisions retained an operating presence in their geographical locations and other centralized marketing, merchandising and other staff functions were relocated between 1992 and 1998 from Oak Brook, Illinois to Salt Lake City to occupy the then-new American Stores Tower, pharmacy operations were relocated to Scottsdale Arizona with certain pharmacy systems-related resources continuing to operate from the Chicago area after being relocated to 3030 Cullerton Drive in Franklin Park, Illinois, the location that previously served as Osco Drug's divisional headquarters prior to its relocation to its new purpose-built office facilities at 1818 Swift Drive in Oak Brook, Illinois' Windsor Office Park during the early 1970s. After American Drug Stores' move to Salt Lake City, Utah was complete in 1998, Osco's Oak Brook, Illinois 1818 Swift Drive headquarters was sold to the Follett CorporationFollett Corporation
Follett Corporation is a River Grove, Illinois-based company that provides a variety of educational products to schools, colleges, and public libraries through its subsidiaries.-History:...
. Many drug division employees who relocated from Chicago to Salt Lake were subsequently relocated to Scottsdale, Arizona and back the Franklin Park facility following Albertsons' subsequent American Stores acquisition.
Osco Foodmarts
In 1994, American Stores converted 25 Jewel Food Stores in Chicago, Illinois to Osco Drug free standing stores. These older and smaller Jewel stand alone stores were closed so that American Stores could focus on the combination formats only for Jewel and to expand Osco's presence in Chicago as a response to WalgreensWalgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
increasing market dominance. The Osco stores replacing the Jewel stores contained expanded food and produce presentations and were coined 'Osco Foodmarts'.
Health 'n' Home
To extend its core drugstore business, in November 1995 American Drug Stores launched a new category-killer format called Health 'n' Home, which was a 28000 square feet (2,601.3 m²), 18,000-item home health care superstore. The first Health 'n' Home opened in Phoenix, Arizona, and by late 1997 there were 20 Health 'n' Home stores in four states.RxAmerica
In 1998 American Stores RxAmerica division and Longs Drug Stores Integrated Health Concepts (IHC) division agreed to merge their Pharmacy Benefits Management (PBM) ventures. Under terms of the joint venture, RxAmerica and its former corporate partner, Geneva Pharmaceuticals, parted ways, and RxAmerica combined with Longs' IHC division in a 50/50 partnership. The alliance created a national PBM of nearly 1,400 Longs and American Stores pharmacy outlets and a nationwide network of 40,000 pharmacies serving some 3 million patients under contract. Longs and Albertsons remained equal partners up though 2001, when Albertsons sold their 50% interest to Longs.Albertsons, Inc.
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.
In 2002, Albertsons sold its 84 free-standing Osco Drug stores in Massachusetts
Massachusetts
The 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...
, New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
and Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
to the Jean Coutu Group
Jean Coutu Group
The Jean Coutu Group Inc. is a Canadian drugstore chain headquartered in Longueuil, Quebec. It has more than 360 franchised locations in New Brunswick, Ontario and Quebec under the PJC Jean Coutu, PJC Clinique and PJC Santé Beauté banners...
, a Canadian drugstore company. Jean Coutu rebranded the acquired Osco stores as Brooks Pharmacy
Brooks Pharmacy
Brooks Pharmacy was a chain of more than 330 pharmacies located throughout New England and New York and has been a well-recognized name in the New England pharmacy industry for several decades. The corporate headquarters were located in Warwick, Rhode Island...
. Also in 2002, Albertsons, due to financial difficulties, closed several of its stores across the country including all stores in the Des Moines, Iowa
Des Moines, Iowa
Des Moines is the capital and the most populous city in the US state of Iowa. It is also the county seat of Polk County. A small portion of the city extends into Warren County. It was incorporated on September 22, 1851, as Fort Des Moines which was shortened to "Des Moines" in 1857...
metro market.
In March 2005, Albertsons re-introduced the Osco brand name to the New England region by way of its Shaw's and Star Market pharmacies.
SuperValu, CVS Corporation, and Cerberus
On June 2, 2006, the sale of Albertsons, Inc. 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.
Osco is now run under Supervalu Pharmacies
Supervalu Pharmacies
SuperValu Pharmacies is a wholly owned subsidiary of Eden Prairie, Minnesota-based SuperValu. SuperValu Pharmacy operates 950 pharmacies in Shop 'n Save, Hornbacher's, Farm Fresh Food & Pharmacy and Cub Foods stores.-Osco Pharmacy and Sav-on Pharmacy:...
and is based in Eden Prairie, Minnesota
Eden Prairie, Minnesota
As of the census of 2000, there were 54,901 people, 20,457 households, and 14,579 families residing in the city. The population density was . There were 21,026 housing units at an average density of 649.2 per square mile...
. Certain store support functions exist in the Franklin Park, Illinois
Franklin Park, Illinois
Franklin Park is a village in Cook County, Illinois, United States. The population was 19,800 at the 2004 census.-Geography:Franklin Park is located at ....
office.
Alumni information
Osco Drug 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.See also
- Acme Markets for a history of Acme Markets.
- Albertsons for a history of Albertsons.
- 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. - Eisner Food StoresEisner Food StoresEisner Food Stores was a chain of supermarkets in Downstate Illinois. It was acquired by The Jewel Companies, Inc. in 1957. The Eisner stores were rebranded Jewel in 1981.-History:...
for a history of Eisner Food Stores. - Jewel Food Stores for a history of Jewel Food Stores.
- 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.