Lucky Stores
| File:Lucky logo.PNG | |
| Company type | Subsidiary of Supervalu |
|---|---|
| Industry | Retail |
| Founded | 1935 San Leandro, California |
| Headquarters | Buena Park, California |
Area served | Southern California, Las Vegas, Nevada |
| Products | Bakery, dairy, deli, frozen foods, general grocery, meat, pharmacy, produce, seafood, snacks, liquor |
| Website | LuckyStores.com |
Lucky Stores was a grocery chain founded in San Mateo County, California in 1935. In 1998, it was taken over by Albertsons and by 1999, the Lucky brand disappeared. In 2006, Supervalu, who acquired most of Albertsons' operations and the Lucky trademark, and Northern California retailer Grocery Outlet engaged in a legal battle since both companies tried to revive the Lucky brand.
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."[1]
History
Beginning
Lucky Stores first began in San Mateo County, California when Charles Crouch expanded his "lucky stores" to the East Bay in 1935. Stores were first grouped in Oakland and surrounding areas. Lucky had a big influence in transitioning from small store to supermarket.
Its first flagship store opened in 1947 in San Leandro, California. It featured a coffee shop and other conveniences. It was the last Lucky Store to be rebranded after the takeover by Albertsons.
Through the years Lucky acquired Cardinal Stores, Jim Dandy, and Food Basket among others.
Subsidaries
Throughout the 1960s and 1970s, Lucky Stores operated the Gemco department stores in California, Nevada, Phoenix, and Houston and Memco in the Chicago and Washington, D.C. areas. In 1983 Lucky closed five Houston-area Gemco discount stores.[1] The Memco stores in the Chicago metropolitan area were converted to Eagle Food Centers and subsequently closed. Lucky acquired Hancock Fabrics in 1972. Due to a 1986 hostile takeover bid by Asher Edelmanof, many Gemco stores were sold to Dayton Hudson (now Target Corporation) or closed, while Hancock Fabrics was sold as a public company and Kragen Auto Parts was sold to form CSK Auto.
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. Eagle Supermarkets had a 6 percent share of supermarket sales in Houston one year earlier. That put it behind Kroger, Safeway, Randall's Food Markets and Fiesta Mart, but ahead of Rice Food Markets and Gerland's Food Fair.
Acquisition by American Stores and Albertsons
By 1988, Lucky became a part of American Stores Company, along with Jewel, Jewel-Osco, Acme Markets, Alpha Beta, Food Basket, and Sav-On Drugs. The Alpha Beta stores in Northern California became Lucky Stores. A number of Southern California branches were either sold or merged with Ralphs. Some Lucky Stores with combined food and drug changed their name to Lucky-Sav-On as part of the merger.
In 1998, American Stores was bought out by Albertsons, which became the second largest grocery retailer in the United States. In the year that followed, all Lucky Stores took the Albertsons name, and the Lucky brand was phased out. In Central California, many Lucky Stores were bought by Save Mart Supermarkets and now operate as Save Mart.
Grocery Outlet Return
In 2006, 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. On April 1, 2005, the Sacramento Bee, interviewing Grocery Outlet President and COO Bob Tiernan, reported that 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 noted that Albertson's has indicated its belief that it continues to own the Lucky brand. However, Grocery Outlet believes that Albertson's failure to utilize the brand means the company has effectively surrendered the trademark. Grocery Outlet has pre-emptively filed a lawsuit against Albertsons seeking a declaration from Albertsons that the company has surrendered the brand.[2]
On the next day, April 2, Albertson's filed a request for a temporary restraining order for Grocery Outlet's usage of the Lucky mark.[3] At the same time, on the Albertson's homepage, the Lucky trademark re-appeared, seemingly as evidence for the mark's use.
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.[4]
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.[5]
Supervalu Return
Lucky Stores returned in the summer of 2006. The new stores do not have loyalty cards, do not advertise specials, and do not offer delivery, emphasizing consistently low prices instead. The stores target the budget minded home cook. [6]
In July 2006, Max Foods stores in Alhambra, El Centro, and San Ysidro were rebranded as Lucky by Supervalu. The Max Foods store in Montebello, California, is pending rebranding to Lucky, since there is an Albertsons store one block away.
By October 2006, one Albertson's in North Las Vegas, Nevada, had been rebranded as a Lucky, as well as another in Las Vegas, Nevada.
As of June 2007, the Lucky Stores Web site redirects users to the Albertson's site instead. The Albertson's site does list Lucky Stores in its store locator tool, but there are no other references to Lucky Stores on their Web site.
On June 13, 2007, two additional Albertson's in southern Nevada will be converted to Lucky stores, one in North Las Vegas, and another in Las Vegas. According to company officials, no additional changeovers are planned in the next few months, but depending on how the stores do, there may be a "handful" of additional changeovers.[7] [8]
Save Mart Return
Save Mart acquired Albertsons LLC on November 27, 2006[2]. Included in the deal is the right to use the Lucky brand in the areas Albertsons LLC operated, and planned to remodel at least part of the stores acquired with that name[3].
References
- ^ Eagle's 21 stores here may change hands soon, Houston Chronicle, March 2, 1985.
- ^ Save Mart press release on the acquisition, assessed 10 June 2007.
- ^ Elliot Zwiebach, Save Mart to Rebrand Most Albertsons with Flagship Banner, Supermarket News 29 November 2006. Accessed 10 June 2007.
Sources
- "Supervalu resurrects Lucky brand in California". retailnet.com. July 28, 2006.
{{cite news}}: Check date values in:|date=(help); Cite has empty unknown parameter:|1=(help) - "Supervalu to Get Lucky in Vegas". progressivegrocer.com. July 28, 2006.
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