Corpus Christi Caller Times Caller.com - Albertson's on SPID will close

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Wednesday, September 26, 2001
Albertson's on SPID will close
Number of job losses is unclear; weak sales, low earnings cause decision
By Laura Elder
Caller-Times
Boise, Idaho-based Albertson's, citing weak sales and earnings, announced Tuesday that it will close its South Padre Island Drive-Everhart Road store on Nov. 1.
   The supermarket giant, with a dwindling Corpus Christi presence, said the 4818 S. Padre Island Drive location was not competitive. The company will continue to operate its store at 5513 Saratoga Blvd.
   Local store employees would not comment about how many employees would be out of a job there. Corporate officials could not be reached Tuesday afternoon. Channel 6 reported Tuesday the store employs 58 people.
   "Some associates will be offered alternate employment at the remaining Albertson's store in the Corpus Christi area," Albertson's said in a written statement.
   In July, Albertson's announced it would close about 165 stores in 25 states and eliminate up to 20 percent of managerial and administrative jobs above the store level. At the time, the grocer did not say which stores would be closed.
   Albertson's has about 235,000 employees, about 8,000 of whom fall into the targeted categories. That could mean the elimination of as many as 1,600 jobs.
   The cuts are aimed at reducing operating costs as the nation's second-largest food and drug retailer continues to struggle with its 1999 acquisition of American Stores, company officials had said.
   This isn't the first time Albertson's has closed a Corpus Christi store. In 1998, it closed its two-year-old South Staples and Kostoryz Road store, saying it fell victim to competition from the rebuilt H-E-B at 3133 S. Alameda St..
   The SPID store opened in 1973 at SPID and Everhart under the name Skaggs Albertson's and at the time was considered a novelty concept for its supermarket and drug store under one roof. The concept caught shoppers' attention for its in-store bakery, a quick service snack bar with a delicatessen, a grocery supermarket, a full line of drugs and a wide assortment of sundries. Such store amenities have become typical in the industry.
   Committed to region
   When the company first operated here, it had trouble getting a license to sell beer for off-premises consumption. At the time, H-E-B did not sell beer and wine. Skaggs Albertson's eventually got its license.
   In 1977 the Skaggs Albertson's partnership, which owned 58 drug-grocery stores and 13 drugstores in five southern states, was dissolved.
   Albertson's operates more than 2,500 stores in 36 states and is one of the world's largest food-drug chains. It operates 226 Texas grocery stores. It will continue to expand in the region, officials said in a written statement.


Contact Laura Elder at 886-3678 or elderl@caller.com

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