ASSOCIATED OFFERING MORE TO MEMBERS

CATHY GRADT

SALT LAKE CITY -- Associated Food Stores here is moving ahead on providing more efficiencies and better technology to its member retailers.

Speaking at the cooperative's annual meeting here, Rich Parkinson, president and chief executive officer, said both the recent acquisition of a Utah warehouse and the conversion to a new information management system will bring significant benefits to retailers. As an example of a "tangible benefit," he cited the company's recently completed acquisition of a 263,000 square-foot general merchandise warehouse in Payson, Utah, from Buttrey Food & Drug Co., Great Falls, Montana. Terming the deal a "good business decision," Parkinson emphasized that this state-of-the-art facility, together with a general merchandise supply agreement to service about 40 Buttrey stores will increase the efficiency and purchasing clout of the entire company.

Competitive advantages are anticipated to accrue to all member stores which range from "mom and pops" to 66,000 square-foot units, he said. It is expected that Associated will pick up about $42 million in annual sales in business with Buttrey, according to reports.

Located in Utah, Idaho, Nevada, Wyoming, Colorado, Montana, Oregon and Arizona, Washington, Associated member stores are serviced by full line distribution centers in Salt Lake City, Pocatello and Boise, Idaho, and in Billings and Helena, Montana.

Another step taken to create more opportunities for retailers includes the conversion of all divisions to the Associated Information Management System (AIMS), providing for the first time a company-wide operating platform for all systems and processes. "This will contribute greatly to the consistency and reliability of company data," said Parkinson, and will lead to improved decision making in all areas.

Parkinson also pointed to the formation of board committees to "better define and analyze the needs of the company," as a way to further enhance retailers' resources and ultimate likelihood of success.

Associated's sales for fiscal 1995, ending March 25 rose to $842 million, up 4% over the previous year's $809 million. Total rebates paid to members increased 10% to $33 million from $30 million in fiscal 1994.

Parkinson urged all "stakeholders" in Associated, including retail members, employees of the corporation -- and trade and professional groups -- to strive for an increased sense of interdependence and partnering.

Last year, members opened 13 new stores and remodeled or expanded nine units for an increase in retail space of 318,000 square feet. Construction plans for the current fiscal year call for up to 15 new stores and about 10 remodels for a total of more than 350,000 square feet, said Steve Miner, vice president of retail development.