BOISE -- Albertson's Inc. wants its name on more than 400 Lucky stores in California and Nevada and is convinced longtime customers there will accept the change.
The Boise-based grocery company said the Lucky stores it acquired in the two states earlier this year in the merger with Salt Lake-based American Stores Co. will change to Albertson's on Wednesday.Albertson's hopes it will reduce costs, but analysts say eliminating the well-known Lucky brand could alienate consumers.
"By operating under one banner, it will allow us to streamline our operations," Albertson's spokeswoman Jenny Enochson said.
That could mean the cost of foods will fall some in those markets and, perhaps, companywide. It also could mean the company will make more money through cost savings.
With the new name, the Lucky stores will get Albertson's store brands and other features of Albertson's markets, such as its prepared foods like rotisserie chicken.
The nation's second-largest grocery chain is breaking the news to Southern California through a series of advertisements with a marriage theme.
One ad asks: "Lucky, will you marry me?" Another says: "From this day forward Lucky will be Albertson's."
Albertson's owns 754 stores in California -- the company's biggest state market -- and 73 in Nevada.
But some analysts say the name change is a risky move.
"Any time you change the brand you reopen the decision process for the consumer in terms of where they want to shop," Boise State University marketing professor Gary McCain said.
In the merger with American Stores, Albertson's also acquired Jewel Osco, Acme, SaveOn and Osco drug stores. Enochson said the company is not certain what it will do in those markets.