AMERICAN SWITCHING CARD AREA TO HALLMARK

JOEL ELSON

SALT LAKE CITY -- American Stores Co., in a move aimed at strengthening centralized buying for its food and drug divisions, is shifting the greeting card departments at its 818 food stores to the Hallmark Cards Ambassador Cards line.

American, whose 822 drug outlets already carry Hallmark products, agreed in September for Hallmark to become its major supplier of greeting cards and related products to its food store divisions -- Acme Markets, Jewel Food Stores and the Northern and Southern California divisions of Lucky.

According to Victor L. Lund, American's chairman and chief executive officer, the agreement with Hallmark "reflects the strides the company is making in centralizing the buying process, while supporting the unique marketing requirements of the food and drug divisions."

The food divisions presently carry American Greetings cards and accessories. The decision to shift the food stores' card sections to the Hallmark banner "will also improve efficiencies and lower costs for both Hallmark and American Stores," Lund noted.

"All of our food store divisions previously had the American Greetings card line, and they will be switching over to Ambassador Cards beginning in 1997," said Judi Decker, a spokeswoman for American Stores.

American has been installing larger greeting card sections with expanded party goods in its newer stores during the past few years, which is expected to continue.