American Stores Chairman Runs His Own Show : Money-Maker and Frugal--2 Descriptions of Skaggs

L.S. (Sam) Skaggs, the 64-year-old chairman of American Stores, is used to running his own show.

The grandson of a Tennessee Baptist minister who opened a Skaggs Cash Store in 1915 in Idaho to guarantee low prices for his congregation, Sam Skaggs has headed the family company since 1950.

Since then, he has developed a reputation for savvy acquisitions and profitable asset sales.

“He’s a very shrewd businessman who’s got strong ideas on what he wants to accomplish,” said one industry executive. A competitor added that Skaggs is known for “pretty much being a one-man operation.”

That is apparently not always obvious to those who come into contact with Skaggs. There are some who may have underestimated the man who waged a two-month war for rival Lucky Stores. The battle ended Friday with the $2.5-billion acquisition of Lucky by American Stores.

“He looks and acts like a neighborhood pharmacist,” said one acquaintance. “And he actually thinks of himself more as a druggist than a food operator. You’d never know the guy is worth $500 million, or whatever it is.”

According to a Forbes Magazine ranking of America’s wealthiest individuals, the figure is $480 million. Most of that net worth represents his ownership of American Stores stock, reported Forbes, which described Skaggs as “frugal.” That frugality, company insiders say, is reflected in company operations.

“He intended the company to be a money-making machine,” said one. “American Stores, as a company, is extremely lean. It’s almost to the point where you don’t want to turn ‘em sideways because you can’t see ‘em.”