User:Captadam/sandbox

Albertsons, a wholly owned subsidiary of Eden Prairie, Minnesota-based Supervalu, is a supermarket retailer that, at its peak, operated more than 2,500 grocery stores and 700 drug stores in 37 states with approximately 230,000 associates. Supervalu granted Cerberus a license to continue to operate Cerberus-owned stores under the Albertsons banner. It was ranked number four in sales by Supermarket News — behind Wal-Mart, Kroger and Costco, with only Kroger having more stores.

History
Albertsons was founded by Joe Albertson in 1939 in Boise, Idaho, USA. An ad in the Idaho Statesman touted Joe Albertson's first store as "Idaho's largest and finest food store." The store was filled with perks that, at the time, were brand new: free parking, a money-back guarantee, even an ice cream shop. The store was located at 17th and State Streets in downtown Boise.

In 1969, it partnered with Skaggs Companies, Inc. to create the first combination grocery/drug store. Later, Albertsons acquired Seessel's, Smitty's, Super One Foods, Buttrey Food and Drug, and Bruno's.

A predecessor company to Albertsons, The Jewel Companies, Inc., based in Melrose Park, Illinois, merged with American Stores Company in 1984. Prior to Jewel's hostile takeover by American Stores, Jewel Companies operated Jewel Food Stores, Osco Drug, Jewel-Osco, Eisner Food Stores, Buttrey Food and Drug, Sav-on Drugs, Star Market, Crest photo lab and White Hen Pantry among its many operations. In 1994, Star Market (then owned by American Stores Company) was sold to Investcorp. In 1998, Investcorp sold Star Market to Shaw's Supermarkets with the sale completed in 1999. Jewel had experimented with many formats through its long and storied history, including two deep discount formats, one named Budget with stores in Schaumburg and Crystal Lake, Illinois, and another named Magna with one store located in Rockford, Illinois. During the 1970's, Jewel operated a forerunner to today's superstore format using the name Jewel Grand Bazaar. Jewel also operated Turn-Style department stores. When Jewel disposed of Turn-Style, Venture Stores acquired many of the former Turn-Style locations. Jewel is best known for pioneering the first Jewel-Osco "combo" store in 1962. Today, the "combo" store format is used by Albertsons throughout many of its divisions.

In 1998, Albertsons acquired American Stores Company, which included the chains Acme, Lucky, Jewel, Jewel-Osco, Osco Drug and Sav-on Drugs. The Lucky stores were converted to Albertsons in November 1999, and the Lucky brand name was retired until April 2006, when Albertsons returned the Lucky Stores brand name to their website due to a dispute with Grocery Outlet.

In 2001, Albertsons sold its free-standing Osco stores in the northeastern states to Jean Coutu Group, a Canadian drug store company. Those stores were rebranded as Brooks Pharmacy after the sale was completed in January 2002. 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.

Albertsons exited the San Antonio, Texas, market in April 2002 by closing its 20 remaining area stores after already shuttering three other stores in December 2001. Albertsons was the area's second top grocer to market innovator H-E-B. At the time of the withdrawal, the 44-store H-E-B chain held a commanding 61 market share, while Albertsons held a 15 market share. Albertsons was the area's third top grocer before Kroger exited the market in mid-1993 when it closed its 15 area stores. Then, H-E-B's 37 area stores held a 43.2 market share, Kroger's 15 area stores a 13.7 share, and Albertsons 10 stores a 13.1 share.

Also in 2002, Albertsons sold its Seessel's supermarket chain in Memphis and parts of Mississippi to Schnucks, and pulled out of Houston, closing its 43 area stores after seven years in that market.

In 2004, Albertsons acquired Shaw's Supermarkets and Star Market Company from J Sainsbury plc for $2.5 billion.

Acquisition of Albertsons
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 in cash, stock and debt assumption. As of June 2, 2006, the company's retail stores have been divided as follows:
 * Supervalu has acquired 1124 stores, including Albertsons, Max Foods and Super Saver Foods stores located in the former Intermountain (except two Super Saver Foods stores in Ogden and Salt Lake City, Utah, were sold to Cerberus), Northwest, Southern California (including Southern Nevada) regions and all Acme, Bristol Farms, Jewel, Jewel-Osco, Lazy Acres, Save-A-Lot (those operated by Shaw's), Shaw's and Star Market stores;
 * Supervalu has also acquired 11 distribution centers, 722 in-store pharmacies and 107 fuel centers;
 * Supervalu has divested two Jewel-Osco stores in Springfield, Ill., to Cerberus;
 * CVS has acquired all (approximately 702) of the stand-alone Osco Drug and Sav-on Drug stores in the Midwest, Southwest, Southern California and Nevada, and a warehouse located in La Habra, Calif., rebranding them all as CVS/pharmacy; and
 * The Cerberus-led group acquired 655 Albertsons, County Line Liquor, Grocery Warehouse, Max Foods and Super Saver stores in the former Dallas-Fort Worth, Florida, Northern California (including northern Nevada), Rocky Mountain and Southwest regions, and two Super Saver Foods stores in Ogden and Salt Lake City, Utah. Cerberus also acquired two Jewel-Osco stores in Springfield, Ill., from Supervalu. Cerberus will have one year in which to sell the two stores, with 80 percent of the proceeds paid to Supervalu.

The agreement also included terms for dividing up distribution centers and other real estate and support operations, as well as the sale of 26 Chicago-area Cub Foods from Supervalu to the Cerberus-led investor group. Since Cerberus has taken control of the Cub Foods locations, Cerberus has announced that four locations (Algonquin, Bedford Park, Chicago and Naperville) will be closed by June 24, 2006.

After Acquisition
As of June 2, 2006, select assets of Albertson's, Inc., are wholly owned by Eden Prairie, Minnesota-based Supervalu Inc. The assets acquired include Albertsons, Max Foods and Super Saver Foods stores in the former Intermountain (except two Super Saver Foods stores in Ogden and Salt Lake City, Utah, that were sold to Cerberus), Northwest and Southern California (including southern Nevada) regions and all Acme, Bristol Farms, Jewel, Jewel-Osco, Lazy Acres, Save-A-Lot (the stores operated by Shaw's), Shaw's and Star Market stores. The Osco Drug and Sav-on Drugs brand names are also owned by Supervalu.

CVS/pharmacy has purchased 702 freestanding Osco Drug and Sav-on Drugs stores that are not located in or part of a combination food and drug store. Also included is a warehouse located in La Habra, Calif. The stores will be rebranded as CVS/pharmacy. The transaction was effective June 2, 2006.

Cerberus acquired all Albertsons, County Line Liquor, Grocery Warehouse, Max Foods and Super Saver stores located in the former Dallas-Ft. Worth, Florida, Northern California (inlcuding northern Nevada), Rocky Mountain and Southwest regions, and two Super Saver Foods stores in Ogden and Salt Lake City, Utah, along with certain warehouse assets. The agreement also grants Cerberus a perpetual license to use the Albertsons banner and company name. Cerberus created Albertsons LLC, a privately held company based in Boise, Idaho.

Supervalu has publicly stated that Albertsons will continue to have a presence in Boise, Idaho, for a three-year period from the date of acquisition, but has not stated which functions will remain permanently in Boise, Idaho, or transitioned to Eden Prairie, Minnesota.

Albertson's, Inc., is no longer a separate publicly traded company and has been removed from the NYSE. Albertsons will only exist as a nameplate for the grocery stores acquired by Supervalu and Cerberus.

Grocery Stores
At many of the Albertsons family of grocery stores with pharmacies, the Osco and Sav-on brand names were used along with the name of grocery store. However, Bristol Farms, Lazy Acres, Max Foods, and Super Saver did not offer pharmacy services.

An exception is Jewel-Osco. Jewel-Osco are two separate stores combined into one without walls. However, each side maintains separate management, union contract, business and liquor licenses.


 * Acme
 * Albertsons
 * Bristol Farms
 * Grocery Warehouse
 * Jewel
 * Jewel-Osco
 * Lazy Acres
 * Max Foods
 * Save-A-Lot (those locations operated by Shaw's)
 * Shaw's
 * Star Market
 * Super Saver Foods

Other

 * Acme Express
 * Albertsons Express
 * County Line Liquor
 * Jewel Express
 * Osco Drug
 * Sav-on Drugs
 * Toys "R" Us Toy Box (Located in select Acme, Albertsons, Jewel, Jewel-Osco, Shaw's and Star Market stores)

Technology
Albertsons was increasingly progressive in the area of technology, having in recent years added a "check out while you go" system, where shoppers scanned items as they shopped and quickly paid before leaving.

Albertsons had also offered (in certain areas) its customers the option to shop from home via the company's website, www.albertsons.com. Pickups were arranged at the store, or the items were delivered to the customer's home. In areas where this program was in effect, it was widely advertised over television and radio by corporate spokeswoman Patricia Heaton.

Unions
Albertsons had contracts with the United Food and Commercial Workers (UFCW), the largest grocery union in the United States. In late 2003 and early 2004, Albertsons, along with competitor Ralphs (owned by Kroger), locked out its workers who were members of the UFCW in Southern California, in sympathy with competitor Vons (owned by Safeway), whose UFCW workers were on strike. The issues in contract negotiations included health care benefits and wage structure. The UFCW lost its bid to keep its benefit and wage language in the contract intact, a reflection of how former Albertsons management viewed the developing Wal-Mart Supercenter (Wal-Marts rules the grocery stores ) situation in Southern California. At present, starting wages and benefits given to new Albertsons employees are lower than those of employees hired before the labor dispute. Employee approval continues to decline with the increasing distance in associate and corporate relations (as of 2006).

Litigation
On May 31, 2006, Albertsons agreed to pay a $2 million fine to settle a consumer-protection case brought by three California counties and the city of San Diego that accused the supermarket chain of overcharging consumers by improperly weighing salads and bulk food items.