Marriage of Alpha Beta, Lucky Stores to Produce an Offspring Named LAB : RETAILING

First there was the A&P;, then Am Pm Mini-Marts. And now shoppers will be toting home bags from the local LAB.

That is because the recent marriage of American Stores’ Alpha Beta chain and Lucky Stores will soon create ads for a new supermarket chain with almost 600 stores: Lucky-Alpha Beta.

The Alpha Beta name gradually will be phased out. But for the time being, advertising and marketing for the stores will use the combined moniker, said Judy Decker, a spokeswoman for Lucky.

Meanwhile, at the annual meeting of American Stores shareholders on Wednesday, Chairman L.S. Skaggs warned that the company’s earnings outlook looks bleak for the next six months.

The $2.5 billion borrowed by American Stores to acquire Lucky will result in “sizable” interest expenses, Skaggs said. “I expect earnings to be dramatically reduced for the remainder of 1988 . . . and then improve in 1989.”

Eventually, Skaggs said, the combined operations should bring “significant synergism and savings.”

One way American won’t be scrimping--at least not yet--is by trimming its roster of top executives.

Under the combined management structure, John M. Lillie is chairman and chief executive officer of American Stores’ new Lucky-Alpha Beta subsidiary. He formerly held the same titles with Lucky.

Larry Del Santo, who keeps his title of president and chief operating officer of the combined operations, will report to Lillie. Del Santo previously was under Lillie with the Lucky chain.

Then there are four presidents--one each for the Northern and Southern California divisions of both the Lucky and Alpha Beta units.

Lucky’s Southern California division, based in Buena Park, will continue to be headed by its president, Bill Yingling. The Northern California division, based in San Leandro, will be headed by its president, Dick Goodspeed.

Don Kohler will continue as president of Alpha Beta-Southern California, based in La Habra. And Larry Hodges is president of Alpha Beta in Northern California.

“It takes a certain number of people to accomplish the task” of combining the two chains, Decker said, when asked why American is retaining all four presidents.

And after all the stores are converted? “I don’t know what will happen in the long run,” Decker said.