AMERICAN STORES TO OPEN 20 DRUGSTORES, 14 FOOD/DRUG

Executive Summary

AMERICAN STORES TO OPEN 20 DRUGSTORES, 14 FOOD/DRUG combo stores in 1986, the company declared in its just released annual report for 1985. "We intend to increase capital expenditures to the $280 mil. level in 1986 from $203 mil. last year, reflecting the acceleration of our new store development program," the chain added. Together with the four planned expanded food store openings, American Stores will open a total of 38 new stores in 1986. In 1985, the company opened five Jewel-Osco combo stores, nine Osco Drug Centers and nine Skaggs Alpha Beta combo stores, but closed 17 older stores for a net gain of six stores. American Stores noted that its previously announced plan to create a coast-to-coast drug chain under the Osco name continues to move ahead ("The Pink Sheet" May 20, 1985, p. 11). "All of the Skaggs Drug stores have been renamed as Osco, and the majority of the management and record systems have been consolidated at Osco corporate offices in Oak Brook, Illinois." According to the annual report, the final phase of the consolidation, expected to be completed by June, consists of merging Sav-on Drug into Osco. American Stores said that at the end of 1985 its Osco subsidiary operated 483 Osco stores in 29 states, plus 171 Sav-on Drug stores in California, for a total of 654 stores in 30 states "from Maine to California."