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This is an old revision of this page, as edited by 96.82.59.129 (talk) at 21:17, 9 September 2024 (→Acquisition by Albertsons: c/e heading). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

"Lucky's" redirects here. For other uses, see Lucky (disambiguation).
Not to be confused with Lucky's Market.

Lucky Stores
Company typeSubsidiary
IndustryRetail (Grocery)
Founded1935 (89 years ago) (1935) as Peninsula Stores Limited in San Leandro, California, U.S.
FounderCharles Crouch
HeadquartersModesto, California, U.S. (Save Mart)
Boise, Idaho (Albertsons)
Number of locations
66 (Save Mart in California)
4 (Albertsons in Utah)
Areas served
California (Save Mart)
Utah (Albertsons)
ProductsBakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor
OwnerThe Save Mart Companies
(under license from Albertsons)
Albertsons
ParentIndependent (1935–1988)
American Stores Company (1988–1998)
Albertsons (2006–present)
The Save Mart Companies (2006–present)
Websitewww.luckysupermarkets.com (Save Mart)
www.luckylowprices.com (Albertsons)

Lucky Stores was an American supermarket chain founded in San Leandro, California, that operated from 1935 until 1999. The Lucky brand was revived in 2007 and is now operated as two separate and distinct chains by Albertsons in Utah as Lucky and Save Mart Supermarkets in Northern California as Lucky California.

In 1998, Lucky's parent company, American Stores, was taken over by Albertsons, and by 1999, the Lucky brand had disappeared. On January 23, 2006, SuperValu, CVS Pharmacy and an investment group led by Cerberus Capital Management announced they had agreed to acquire Albertsons for $17.4 billion. Existing Albertsons stores were divided between Supervalu and the Cerberus-led group. The Cerberus-acquired stores became Albertsons, which then sold its Northern California and Northern Nevada stores to Save Mart Supermarkets.

In 2006, both SuperValu and Save Mart began re-branding some Albertsons locations as Lucky stores, using the old logo.[clarification needed] However, the same year, Grocery Outlet, an unrelated Northern California retailer, also began branding some of its stores as Lucky, claiming that Albertsons had given up rights to the Lucky trademark when it retired the brand in 1999.[1][2][3] On January 4, 2009, a federal judge ruled against Grocery Outlet, finding that Albertsons had continued to use the name Lucky even after the re-branding of its stores.[4]

SuperValu positioned Lucky as "true neighborhood stores, meaning they meet the unique needs of communities by providing the right products and assortment at the right price".[5]

History

Supermarket operations

An original Lucky refrigerator magnet bearing its trademark "Lucky means low prices" slogan

Lucky Stores was founded by Charles Crouch as Peninsula Stores Limited in 1931 with the acquisition of Piggly Wiggly stores in Burlingame, San Mateo, Redwood City, Palo Alto, and San Jose. By 1935, seven more stores had been added, including the company's first stores in the East Bay, in Berkeley, and in Oakland.[6] In 1947, the company's first flagship store opened in San Leandro, California.[7]

Lucky grew by acquisition in many markets. It expanded into Southern California in 1956 when it bought 10 Jim Dandy stores in Los Angeles and six Food Basket supermarkets in San Diego.[8][9] The same year, the company bought 32 Cardinal stores around Sacramento.[10][11] It purchased nine Big Bear Stores operating in Seattle and Tacoma in 1958[12] and six Hiram's stores operating in the Los Angeles area in 1959.[13]

In 1967, Lucky acquired Eagle Food Centers to expand into the Midwest.[14] The acquisition included 90 Eagle and Piggy Wiggy stores, 30 May's Drug Stores, 4 Times Photo & Supply Stores, and the Coin Baking Company.[15] It acquired the Florida-based Kash n' Karry chain in 1979[16] and the 11-store Dale's chain based in Los Angeles in 1984.[17] Many chains were operated under their old names for several years after their takeovers.

Lucky stores in the Seattle market were sold to Associated Grocers in October 1985. Lucky lacked a distribution center in the state of Washington and felt that it was impractical to continue to serve the market from distribution and manufacturing facilities in California.[18] Associated Grocers renamed the stores from their co-op owned stores and other independent markets.[clarification needed][citation needed]

Lucky Stores operated 22 Houston-area Eagle Supermarkets until March 1985, when it was decided to exit the market altogether. Twenty stores were sold to competitors and two were closed.[19]

Diversified subsidiaries

Gemco, Lucky's membership department store from 1962 to 1986

In 1962, Lucky acquired Gemco discount stores, which had been established in the Anaheim area in 1959.[20][21] The membership discount chain operated in California, Nevada, Arizona, and Houston.[22] Memco, a similar store, operated in the Chicago, Washington, D.C., and Houston areas.[19] Lucky acquired Hancock Fabrics in 1972.[23] In 1974, Lucky acquired the Oklahoma City-based Sirloin Stockade steakhouse chain.[24]

Lucky also owned 22 Mays Drugs in Illinois, Iowa, and Wisconsin. Many of them were next to Eagle Food Stores. They[which?] were closed or sold in the late 1970s. The Mays Drugs stores in Iowa were sold in 1980 to Revco Discount Drug Stores of Twinsburg, Ohio.[citation needed][clarification needed]

In 1982, the company sold off the Sirloin Stockade chain to the parent company of the Golden Corral buffet chain.[24] In 1983, Lucky closed five Houston-area Gemco discount stores.[19] It also closed 13 Memco stores in the Washington, D.C. area.[25] The Memco stores in the Chicago metropolitan area were converted to Eagle Food Centers and subsequently closed.[citation needed]

Takeover attempt

By 1986, Lucky was in a tough financial spot with its Gemco subsidiary struggling to compete with the likes of Target and Price Club. At this time, corporate raider Asher Edelman attempted a hostile takeover of the company.[26] In order to fight off the takeover and improve the value of the company, Lucky closed 80 Gemco stores, selling 54 of them to Dayton-Hudson. The company spent $450 million to repurchase up to 22% of its common shares.[27][28]

By December 1986, Lucky had sold off its Checker and Kragen auto parts subsidiaries, as well as its Yellow Front chain.[29] In 1987, Lucky spun off Hancock Fabrics as an independent company[30] and sold controlling interest in Eagle Food Centers.[31]

Marketing

During the 1980s and 1990s, TV personality Stephanie Edwards was a spokeswoman appearing in television commercials for Lucky stores. The marketing department was known as LuGem Advertising until 1986, located within the distribution center in Buena Park, California.[32]

Acquisition by American Stores

In March 1988, the American Stores Company, offered $1.74 billion to acquire Lucky Stores.[33] The deal ultimately closed at $2.5 billion in June, making Lucky a subsidiary along with Jewel-Osco, Acme Markets, Alpha Beta, Buttrey Food & Drug, Osco Drug, Sav-on Drugs, and Star Market.[34]

However, the merger faced significant legal challenges from the California attorney general. By November 1989, the deal was allowed to go ahead in Northern California. Under the terms, 13 Alpha Beta stores were sold there and the rest became Lucky Stores.[34]

The case went all the way to the US Supreme Court. American was forced to sell or close most of its Alpha Beta stores in Southern California and all its stores in Utah. Additionally, it sold Osco Drug stores in Utah, Colorado, and Wyoming, and closed its Skaggs Home Improvement Centers in Utah. In total, the company converted 56 Alpha Beta stores in California, four Alpha Beta stores in Las Vegas, and a Fullerton warehouse into Lucky operations.[35]

The case was only settled in April 1991, when American agreed to sell the rest of its Alpha Beta chain to Food 4 Less for $248 million. The deal saw 145 Alpha Beta stores in the Los Angeles area change hands, with 15 stores in San Diego County being retained and converted to Lucky Stores.[35]

In 1992, Lucky Stores began selling fresh cut flowers in-store through a joint venture with distributors from Mexico.[36] Between 1993 and 1995, Lucky was the subject of an investigation by the city of Los Angeles that showed 67 of the chain's 82 LA stores had price discrepancies between the chain's posted prices and the prices rung up at checkout. Lucky ultimately settled the case in March 1996.[37] In May 1997, American sold its Central California Lucky Stores to Save Mart Supermarkets.[38][39]

Acquisition by Albertsons and demise of brand

In August 1998, Albertsons announced that they were acquiring American Stores, the parent of Lucky Stores, for $11.7 billion.[40] The merger was completed in June 1999 after the companies presented plans to sell off 145 stores, some bearing the Lucky name, to avoid have the merger being blocked by the U.S. Justice Department.[41] By November 1999, all 480 Lucky Stores took the Albertsons name, and the Lucky brand ceased to exist.[42][43]

Return of the brand

Grocery Outlet unsuccessful attempt to use brand

An April 2006 photo of the Grocery Outlet–operated Lucky-branded store in Rocklin, CA. Note the remnants of the Grocery Outlet rainbow logo above the Lucky logo.

In 2005, Berkeley, California-based Grocery Outlet closed its Rocklin, California, location, only to re-open the store with the Lucky name and the classic Lucky logo. In a April 1, 2005 interview with the Sacramento Bee, Grocery Outlet President and COO Bob Tiernan said the "company believes the Lucky brand has value. And the new store format, with an 'every day low pricing' strategy, reminds us of Lucky". Grocery Outlet lawyer Peter Craigie stated that although Albertsons believes that it continues to own the Lucky brand, Grocery Outlet believes that Albertsons' failure to utilize the brand means the company has effectively surrendered the trademark. Grocery Outlet preemptively filed a lawsuit against Albertsons seeking a declaration from Albertsons that the company has surrendered the brand.[44]

On the next day, April 2, Albertsons filed a request for a temporary restraining order for Grocery Outlet's usage of the Lucky mark.[45] At the same time, on the Albertsons website, the Lucky trademark reappeared, as evidence for the mark's use.[citation needed]

The request was denied by the District Court on April 5. Albertsons had argued that it did not intend to abandon the Lucky brand and that Lucky shopping carts still remained at some of its stores. District Judge Jeffrey White ruled that Albertsons failed to demonstrate that the use of the Lucky brand demonstrated unfair competition and that the burden to prove otherwise was wholly the responsibility of Albertsons.[46]

On July 20, the District Court ruled in Albertsons' favor, granting a preliminary injunction preventing Grocery Outlet from using the Lucky name. Grocery Outlet asked the judge to put the order on hold and appealed to the United States Court of Appeals for the Ninth Circuit.[47] The appeals court upheld the ruling in favor of Albertsons on August 9, 2007,[48] and closed the case against Grocery Outlet on January 4, 2009.[citation needed] The Rocklin store in question has since closed and reemerged years later in the mid-2010s as a Grocery Outlet in a shopping center in the western edge of town.[citation needed]

SuperValu/Cerberus/Albertsons use of brand

An August 2006 photo of a SuperValu-owned rebranded Lucky store at 1000 E. Valley Blvd. in Alhambra, California. (closed as of February 2010)
A 2009 photo of a Albertsons-owned rebranded Lucky store at 4155 Tweedy Blvd. in South Gate, California. (closed as of 2020)

Lucky returned in the summer of 2006.[citation needed] When they opened, the new stores did not have rewards cards, did not advertise specials, and did not offer delivery, emphasizing consistently low prices instead. The stores targeted the budget-minded home cook.[49]

In July 2006, Max Foods stores in Alhambra, El Centro, and San Ysidro were rebranded as Lucky by SuperValu.[citation needed] The Lucky store in Alhambra closed four years later.[citation needed] The El Centro store closed in June 2019.[50]

By October 2006, one Albertsons in North Las Vegas, Nevada, had been rebranded as a Lucky, as well as another in Las Vegas.[citation needed]

According to company officials in 2007, no additional changeovers were planned, but depending on how the stores did, there might be a "handful" of additional changeovers.[49][51]

In February 2009, SuperValu announced the closing of 9 of its Albertsons' Southern California locations. Albertsons stores in South Gate, Van Nuys, and Oxnard were converted to Lucky, although in 2013,[52] the Van Nuys store closed down and was bought by the unrelated Super King chain of Southern California.[citation needed]

In 2013, Cerberus Capital Management acquired the Albertsons stores from SuperValu, including the Lucky stores under Albertsons control.[citation needed]

In 2018, Lucky entered Utah when two stores in Salt Lake City and West Valley City under Albertsons' no-frills and soon-to-be defunct Super Saver banner were converted to Lucky. Later conversions also include an operating Albertsons in Tooele and a vacant store in West Jordan that had operated as an Albertsons several years earlier.[53][failed verification]

In 2020, the last remaining Lucky store in Southern California, in South Gate, closed, ending Lucky's presence in Southern California for the second time.[citation needed]

Save Mart use of brand

Save Mart Supermarkets acquired the Northern California division of Albertsons, with its 132 stores, on November 27, 2006,[54] which included the right to use the Lucky brand in the areas Albertsons operated.[55] In summer 2007, Save Mart converted 72 of the acquired Albertsons stores to the Lucky banner in the San Francisco Bay Area,[56][57][58] despite Grocery Outlet's assertion that Save Mart had no rights to the name.[59]

Lucky California concept

A 2015 photo of a Save Mart-owned Lucky California concept store at 6843 Mission St., Daly City, California.

On July 8, 2015, after a storewide renovation, the Lucky store in Daly City, California, reopened and was rebranded as "Lucky California". Nicole Pesco, Save Mart's Co-President and Chief Strategy and Branding Officer, said the new concept store is "a fusion of Bay Area culture and California sourced and grown, presented with meal solutions at competitive prices".[citation needed]

Save Mart has mostly renovated and rebranded 72 other stores throughout the San Francisco Bay Area.[60] Stores are being redesigned to offer consumers more choices, be a one-stop shop to compete with growing competition, and encourage shoppers to venture through the store.

Save Mart closed three under-performing stores in the Bay Area in November 2023.[61]

Controversy

In October and November 2011, self-checkout machines in 23 Save Mart-owned Northern Californian Lucky stores were tampered with, resulting in the loss of thousands of dollars by Lucky's customers.[62]

References

  1. ^ "Grocery Outlet Disputes Save Mart Use of LUCKY Name". Business Wire. July 20, 2007. Archived from the original on February 2, 2017.
  2. ^ "Amended ORDER Granting Summary Judgment for Grocery Outlet Inc. v. Albertson's, Inc. et al :: Justia Dockets & Filings". Docs.justia.com. Retrieved October 14, 2016.
  3. ^ Grocery Outlet v. Albertson's, 497 F.3d 949 (9th Cir. 2007).
  4. ^ Johnson, Kelly (January 4, 2009). "Judge rules against Grocery Outlet in dispute over use of Lucky name". Sacramento Business Journal. Archived from the original on July 14, 2011.
  5. ^ "Lucky". Supervalu. Archived from the original on November 9, 2006. Retrieved September 8, 2024.
  6. ^ "RETAIL TRADE: Beauty at Work". Time. June 30, 1947. Retrieved May 11, 2010.
  7. ^ "Lucky stores timeline". The Mercury News. July 18, 2007. Archived from the original on May 4, 2017. Retrieved September 8, 2024.
  8. ^ Johnson, Greg (September 13, 1988). "Grocery King Isn't Content to Sit on Shelf". Los Angeles Times. Retrieved September 8, 2024.
  9. ^ Gnerre, Sam (September 24, 2018). "South Bay History: A&P, Shopping Bag, Jim Dandy just a few of area's bygone grocery chains". Daily Breeze. Retrieved September 8, 2024.
  10. ^ "Albertson's swallows Lucky". SFGate. August 3, 1998. Retrieved September 8, 2024.
  11. ^ "LUCKY CHAIN BUYS CARDINAL STORES; Stock Is Exchanged to Form Second Largest California Retail Grocery Outlet". The New York Times. December 20, 1956.
  12. ^ "Bridgeport Post Newspaper Archives, Jul 11, 1958, p. 47". Bridgeport Post. July 11, 1958. p. 47. Retrieved September 8, 2024 – via NewspaperArchive.
  13. ^ "United States v. Von's Grocery Co. et al" (PDF). Library of Congress. October 1965. p. 13. Retrieved September 7, 2024.
  14. ^ "LUCKY TO ACQUIRE FOOD-STORE UNIT; Agrees to Pay $50-Million for Eagle Supermarkets COMPANIES PLAN MERGER ACTIONS". The New York Times. April 11, 1967. Retrieved September 8, 2024.
  15. ^ "Lucky Stores Will Pay $43 Million for Midwest Markets". Los Angeles Times. November 15, 1967. p. C12. ProQuest 155745234.
  16. ^ "Kash n' Karry suffers recent troubles". Tampa Bay Times. August 10, 1996. Retrieved September 8, 2024.
  17. ^ Thurman, Jim (July 5, 2019). "The Lost And Forgotten Supermarkets Of LA's Past". LAist. Retrieved September 8, 2024.
  18. ^ "Lucky Stores said it agreed to sell 25 outlets". Los Angeles Times. October 24, 1985. Retrieved September 8, 2024.
  19. ^ a b c "Eagle's 21 stores here may change hands soon". Houston Chronicle. March 2, 1985. Archived from the original on October 18, 2012.
  20. ^ "Supermarket, Department Store to 'Wed'". Los Angeles Times. December 29, 1960. ProQuest 167806820. Retrieved September 8, 2024.
  21. ^ Gellene, Denise (October 10, 1986). "Lucky to Close Gemco, Sell Most Stores to Dayton Hudson". Los Angeles Times. Retrieved September 8, 2024.
  22. ^ Revkin, Andrew C. (October 11, 1986). "Target to Take Over 5 Gemcos". Los Angeles Times. Retrieved September 8, 2024.
  23. ^ Deutsch, Claudia H. (October 29, 1988). "Lawrence Doyce Hancock, 85, Entrepreneur and Philanthropist". The New York Times. Retrieved September 8, 2024.
  24. ^ a b Lee, Robert E. (August 15, 1983). "New owners aim to revitalize Sirloin Stockade restaurant chain". The Oklahoman. Retrieved September 8, 2024.
  25. ^ Pyatt Jr, Rudolph A. (January 14, 1983). "Ward's in Gaithersburg to Close". Washington Post. ISSN 0190-8286. Retrieved September 9, 2024.
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  36. ^ Kraul, Chris (September 23, 1992). "Grocery Chain Cuts Mexico Flower Deal : Merchandising: Lucky Stores has formed joint venture with Garden Grove's California Floral Distributors to make flower arrangements at a Tecate maquiladora. :". Los Angeles Times. Retrieved September 9, 2024.
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  38. ^ Hood, Jeff (May 13, 1997). "Save Mart is purchasing 10 Lucky stores". The Stockton Record. Retrieved September 9, 2024.
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  42. ^ Colliver, Victoria; Strasburg, Jenny (November 2, 1999). "Lucky stores becoming Albertson's; Purchase means 172 Northern California supermarkets will be renamed Wednesday". San Francisco Examiner. p. C1. ProQuest 270505233. Come Wednesday, your neighborhood Lucky store will have turned into an Albertson's supermarket virtually overnight. In a move that will affect hundreds of stores, Boise, Idaho-based Albertson's Inc. has decided to convert the Lucky stores it purchased in a $12 billion acquisition into stores bearing its name... "We had a very strong brand recognition throughout California, and we had two strong companies that were well respected by the customer, but the bottom line is we had to go with one name," said Don Keprta, president of Albertson's Northern California region, who was the former general manager of the Lucky division... In most cases, the conversion will amount to a temporary banner replacing the Lucky sign until a permanent sign can be installed, a process that may take several months.
  43. ^ Fulmer, Melinda (November 3, 1999). "Lucky Stores to Become Albertsons". Los Angeles Times. Archived from the original on September 9, 2024. Retrieved September 9, 2024. Beginning today, all 480 Lucky stores will be renamed as Albertsons, making the Boise, Idaho-based chain the largest in California.
  44. ^ Kasler, Dale (April 1, 2006). "'Lucky' store name resurfaces in Rocklin". Sacramento Bee. p. D1. Archived from the original on November 11, 2007.
  45. ^ Kasler, Dale (April 3, 2006). "Name's not so Lucky for Grocery Outlets". Sacramento Bee. Archived from the original on April 25, 2006.
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  48. ^ GROCERY OUTLET INC. V ALBERTSON'S INC. - U.S. Court of Appeals for the Ninth Circuit - 09 August 2007, Federal Circuits, Docket 06-16380 - vLex
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  50. ^ "Lucky grocery to close June 15". Imperial Valley Press. May 10, 2019.
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  52. ^ Hirsch, Jerry (February 19, 2009). "Albertsons to close 9 grocery stores by April". Los Angeles Times. Archived from the original on November 9, 2020.
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  54. ^ "Save Mart Supermarkets purchases Albertson's Northern California Division" (PDF). Save Mart (Press release). November 27, 2006. Archived from the original (PDF) on February 21, 2007. Retrieved June 10, 2007.
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  56. ^ Zwiebach, Elliot (July 18, 2007). "Save Mart Brings Back Lucky Name in San Francisco". Supermarket News. Retrieved July 18, 2007.
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  60. ^ "Save Mart opens first Lucky California concept store in Daly City". Save Mart (Press release). July 8, 2015. Archived from the original on September 24, 2015. Retrieved January 27, 2016.
  61. ^ Mayer, Phil (November 6, 2023). "Lucky Supermarkets close three Bay Area locations". KRON-TV.
  62. ^ Delevett, Peter (December 8, 2011). "Customer outrage grows in Lucky hacking case". Mercury News. Archived from the original on October 19, 2016. Retrieved December 10, 2011.

Sources

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