American Stores Moving Main Offices to Southland
American Stores Co., parent company of Alpha Beta supermarkets and Sav-on Osco drugstores, is moving its corporate headquarters to Orange County from Salt Lake City, two company spokesmen confirmed Tuesday.
The relocation, scheduled for July, is expected to involve a dozen to two dozen corporate executives, plus support personnel, a company spokesman said. American Stores executives declined to discuss the relocation.
The reshuffling will put American’s headquarters in the same county as Irvine-based Alpha Beta Stores, one of its three operating companies. Furthermore, Alpha Beta’s Southern California operating division is based in nearby La Habra.
American Stores has 240 Alpha Beta stores in California, of which two-thirds are located in the Southland. The company also operates 150 drugstores in the state.
Full Report Awaited
A spokesman said the company’s plans for relocation will be described in detail in the company’s 1987 annual report, which is scheduled to be mailed to shareholders at the end of this week. But its 1986 annual report, issued just one year ago, states that “American Stores Co. . . . will remain in Salt Lake City.” The company spokesmen, both of whom asked not to be identified, gave no explanation for the apparent change in plans.
Several industry insiders, however, said that American’s chairman, L. S. Skaggs--who owns 11% of the company’s common stock--last year bought a luxurious home in the Laguna Beach area. Skaggs runs “a one-man operation,” said one Orange County developer who asked not to be identified. “Where the chief of a corporation moves is where its headquarters will be.”
Not a Surprise
For that reason, the relocation could provide a much-needed boost to American Stores, which has posted unimpressive results and lacks a clear identity within the supermarket industry.
“With Skaggs being the hands-on individual that he is . . . the move could sharpen up the management of Alpha Beta. There’s nothing like the incentive of having Mr. Skaggs there every morning,” said a competitor who asked not to be identified.
The Irvine headquarters already is home base for top executives of Alpha Beta Stores, including President Dennis Eck, Executive Committee Chairman Thomas W. King and Vice Chairman Victor Lund.
American’s relocation plans were no surprise to Orange County’s real estate community, which had heard rumors for months that American Stores was looking to buy land in Irvine or Newport Beach.
The Alpha Beta Stores headquarters opened in Orange County 10 months ago after American Stores’ retail operations were restructured into three operating groups. The other two operating companies are Osco Drug in Oakbrook, Ill, and American Superstores of Wilmington, Del.
Founded by Clergyman
In November, Alpha Beta Stores moved into 33,131 square feet of space in the twin-towered Atrium office complex in Irvine--fueling suspicion among local developers that the American Stores headquarters might follow. “It’s rare for a real estate division to be more than 10 people,” said one developer. “It seemed too big” to be only the headquarters for Alpha Beta Stores Inc.,” he added.
American Stores traces its roots to 1915, when it began as a grocery store founded by S. M. Skaggs, a Baptist minister and Sam Skaggs’ grandfather.
The company expanded into a drugstore chain during the 1930s. After a series of acquisitions over the last 20 years, American Stores today operates the Alpha Beta and Osco chains and sells groceries under such names as Acme Markets and Jewel Food Stores.
Today, American Stores has 1,590 stores and 130,000 employees in 39 states.
In late March, the company made a $1.7-billion takeover bid for Dublin, Calif.-based Lucky Stores, which operates 481 food stores in California, Arizona, Nevada and Florida. The combination would create one of the nation’s largest supermarket chains, with more than $21 billion in annual sales.
Times staff writer James S. Granelli contributed to this report.
