RANDALLS PLANS TO INTEGRATE DALLAS OFFICES INTO HOUSTON

HOUSTON -- Randalls Food Markets here said it will integrate its Dallas-based corporate offices into its Houston operations over the next six months, aiming to position itself for greater growth over the next few years. The move will lead to changes in the top leadership of the Dallas operation -- which principally consists of Tom Thumb Food & Drug combination stores -- and will affect about 200 of the 250 employees now working in the Dallas corporate offices. There are no plans, however, to eliminate the Tom Thumb name from Dallas-area stores. The integration of the Dallas operation into Randalls' base of operations in Houston is scheduled to begin in January and to be completed by June. Onstead said the move is designed to eliminate redundancies that have existed since the acquisition. Despite the consolidation, the company won't completely close its Dallas office. It will keep a small staff of about 50 in the facility. Those remaining will include persons in human resources, store planning, construction and public relations.

d last week, John Sullivan, who has been vice president and division manager for Randalls in Austin, Texas, will move laterally to become vice president and manager of Randalls' Houston division. Dale Pawlik, a district vice president in Austin, will succeed Sullivan as vice president and manager of the Austin division. Prestridge, Sullivan and Pawlik will report to Tom Arledge, senior vice president of operations. Randalls operates 121 supermarkets: 51 Randalls Food Markets in the Houston area; 16 Randalls and one upscale Simon David in Austin, and 51 Tom Thumb Food & Drug combination stores and two Simon David units in the Dallas-Fort Worth metroplex. Randalls' officials declined to say how much the company expects to save through the consolidation. Onstead said the company was reviewing options for some 200 people affected by the change at Tom Thumb's corporate offices.

"We are evaluating opportunities to accommodate those individuals through field positions, transfers and support departments," he said.

The company also said that Jack Evans Sr., chairman of Tom Thumb prior to the acquisition, will continue to serve on Randalls' board of directors and retain his position as vice chairman of public affairs. In addition, Brooks Cullum, who is the son of one of Tom Thumb's founders and was the chain's executive vice president of real estate and distribution before the acquisition, will remain on Randalls' board.