NEWS WATCH 1996-04-01

Smitty's Supermarkets, Phoenix, plans to lay off nearly all of its 170 administrative employees and close its headquarters by July 31 as part of its merger with Smith's Food & Drug Centers, Salt Lake City. Observers said some of the staff may be retained by Yucaipa Cos., Los Angeles, which controls the 29-unit Smitty's chain. The closure will not affect store-level employees, Smitty's reported. In a letter to employees last Monday, David Green, Smitty's president and chief executive officer, said the transfer to Smith's offices will begin when the merger is completed in mid-May.

tments, a general partnership that has owned 50% of the stock of Stater Bros. Markets Colton, Calif., has acquired the other 50% from Craig Corp., a Los Angeles-based investment firm. La Cadena consists of members of the 110-unit chain's senior management. Though it has owned 50% of the company's stock, La Cadena has controlled 52% of the voting power, Jack Brown, chairman, president and chief executive officer of Stater, told SN. He said the acquisition of the remaining stock is significant "because now we are 100% in control of our own future." Craig became a Stater investor in 1986 in a proxy fight for control of the chain that La Cadena ultimately won.

Ahold USA, Parsippany, N.J., the U.S. arm of Royal Ahold, Zaandam, Netherlands, is scheduled to begin operating out of its new Atlanta headquarters April 15, said Joseph Harber, executive vice president and chief financial officer. The company is moving primarily because Atlanta is more favorable to travel, he said.

Albertson's, Boise, Idaho, plans to expand two distribution centers. Its Boise facility, which supplies general merchandise and health and beauty care products to Western stores, will be enlarged from 158,000 to 231,000 square feet. Its Portland center, which provides groceries and perishables to Oregon and Washington stores, will be expanded from 622,000 to 792,000 square feet. Both projects, announced last week, are scheduled for completion in the summer of 1997.

IGA Inc., Chicago, plans to add 13 supermarkets in Shenzen, China, which would give it 25 stores in China. IGA will convert stores owned by China Resources Purchasing Co. Ltd., Hong Kong, into IGA units over the next few months. IGA expects to open 125 more stores in China.