The corporate predecessor to today's Smith's Food & Drug Inc. was Smith's Management Corporation (SMC). SMC was founded in 1961 (Carlisle, 1992) as the holding company for the many subsidiaries of Smith's up until the company went public in 1989. Prior to the organization of SMC, Dee Glenn Smith, typically set up each individual store in an ownership structure separate from the others. This prevented one poorly performing store from bringing down the rest. At the time of the SMC founding, Dee Smith had six stores.
Dee's father, Lorenzo Smith was a prominent business man in Brigham City Utah. He operated Smith's Market, later Smith's and Son, from 1911 until his death in 1958. This small market at 499 E 500 S in Brigham City looks today much like it did when it was closed in 1961. (Box Elder..)
In 1982, Smith's had their 50th anniversary ad (Las Vegas Sun...). At the time, Dee Smith claimed the company started when he first worked in his fathers store as a child. He would help bag potatoes and sweep up after school. That founding date would have been 1932, not 1911 as stated in Wikipedia.
In 1982, Smith's had their 50th anniversary ad (Las Vegas Sun...). At the time, Dee Smith claimed the company started when he first worked in his fathers store as a child. He would help bag potatoes and sweep up after school. That founding date would have been 1932, not 1911 as stated in Wikipedia.
Lorenzo had been content to run his Brigham City store and mange his real estate assets. He did convince his reluctant son to join the business as a full partner in 1946. Prior to 1946, Dee Smith worked sporadically for his father while at the time either serving in World War II or trying different vocations. Dee conditioned his acceptance on his father allowing Dee to enlarge the store and engage in regular advertising.
The first store in Dee Smith's empire that grew to 6 stores by 1961, was the 1955 grand opening of the store located at 74 North Main.
My conclusion is that the Smith's as multi-store chain ownership was founded in 1961 by its founder Dee Glen Smith, not in 1911 by Lorenzo Smith. Apparently, Kroger agrees with me on the founder but still uses the 1932 date.
The first store in Dee Smith's empire that grew to 6 stores by 1961, was the 1955 grand opening of the store located at 74 North Main.
My conclusion is that the Smith's as multi-store chain ownership was founded in 1961 by its founder Dee Glen Smith, not in 1911 by Lorenzo Smith. Apparently, Kroger agrees with me on the founder but still uses the 1932 date.
Areas Served:
Smith's at one time or another has operated in a number of states:
Utah: Inception to present
Idaho: 1968 to present. The Boise stores were closed in 1989.
Colorado: 1985-87. Two stores in Montrose and Glenwood Springs. Both sold to Safeway.
New Mexico: 1977-Present.
Texas: 1979-1999. Stores outside of El Paso were sold in 1986 to La Tienda. The El Paso stores were traded to Fleming Foods in 1999 for 7 Furr's stores in New Mexico.
Wyoming: 1983-Present
Oregon: One store in Ontario in the early eighties. Since sold to Albertson's.
Montana: 1999 to present
Arizona: 1987 to 1999 except for the stores along the Colorado river.
California: 1972-1984 and then 1991-1996.
Nevada: 1972 to present.
Smith's has never operated in Washington or Tennessee. This error in Wikipedia was due to a careless reading of Kroger's annual report.
Smith's 2nd entry in Southern California was "entirely unsuccessful."
This is debatable. There's the story in the newspapers around this time and then the story the people in the stores heard. The second version is hearsay and hard to substantiate , but it bears consideration.
Stories in the Deseret news in 1996 painted a picture of a company drowning in debt. Smith's was expanding fast in both Arizona and California through the 90's. In Arizona, Smith's and Smitty's were hard fought competitors with top market shares. A story in the Arizona Republic commented on how the entrance of Smith's into the Phoenix market drove prices down. "When Smith's comes to town, prices go down" was the catch phrase.
It wasn't clear that Jeff, Richie or Fred Smith had children that wanted to run the company. Dee Smith put in some grueling hours building the company and each one of his sons from the time they were teenagers matched that work ethic.
Deal maker extraordinaire Ron Burkle, via Yuccaipa Holdings, in 1996 owned as many stores in California as the government was going to permit. Rumor is that there wasn't anyway he was going to be approved to buy more stores in this market. Burkle had been on a buying spree throughout the 90's. Burkle also owned the Smitty's chain in Arizona. His real genius was to buy grocery chains and make them appealing buys to other chains. He made a ton of money doing this.
Jeff Smith was ready to retire and Ron Burkle had a plan. Buy Smitty's and give Yucaipa 14% of Smith's stock . Ron Burkle would step in as CEO of Smith's. Down the road, everyone cashes out when Fred Meyer buys Smith's. The PROBLEM was those darn California stores! They had to go in order for Yucaipa to step in.
The region in Southern California, just like in the case of the Lucky's purchase in 1984, was marginally profitable. Most of the stores were doing monster volumes. Whether Jeff Smith could have hung on paying down debt and making California acceptably profitable while doing battle with Smitty's in Arizona is debatable. If the past is a guide, Smith's usually prevails if the desire is there.
Carlisle, H. M. (1992). Fulfilling a dream: the Dee Smith story. Salt Lake City, UT: Press.
Food King Grand Opening, Oct 19, 1961, Box Elder News Journal.
Dee Smith Interview, August 23, 1982, Las Vegas Sun.
Carlisle, H. M. (1992). Fulfilling a dream: the Dee Smith story. Salt Lake City, UT: Press.
Food King Grand Opening, Oct 19, 1961, Box Elder News Journal.
Dee Smith Interview, August 23, 1982, Las Vegas Sun.
