Sometime this summer, Utahns won't find it at Fred Meyer.
Cincinnati-based Kroger Co., parent company of both Fred Meyer and Smith's Food & Drug, said Tuesday that five Fred Meyer stores in Utah will get a name-changing makeover this summer and three other stores will close.
The five changing stores, from Logan to West Jordan, will move to a "Smith's Marketplace" banner and concept. After the changes, Fred Meyer will be out of the Utah market but continue to operate in four other states.
Fred Meyer entered Utah in June 1984 when it bought Grand Central and converted five stores to the Fred Meyer banner. Eventually the company had 11 Utah stores, but two were converted to Smith's Food & Drug stores, and one in Orem closed.
"We've done very well there, but this will be a good thing for the whole company and community," said Mary Loftin, vice president of public affairs for Fred Meyer. "It's a way to take the Fred Meyer-style store and spread it across the country."
The new store format will provide shoppers with a grocery, pharmacy and general merchandise. The five stores being remodeled average 154,000 square feet, and the switch will cost more than $7.5 million to accommodate expanded grocery, produce, frozen food and dairy departments, as well as new bakery and service delis.
The name change will happen in mid-June at all five stores, although remodeling will occur between May and August. Each remodel will take one week, and stores will remain open while the work takes place, according to Marsha Gilford, assistant vice president of public affairs for Smith's.
"This marketplace will be a blending of two companies with tremendous retail expertise," Gilford said. "Fred Meyer's expertise is in the general merchandise area. Smith's is in groceries. This will be creating a complete Smith's food store selection within the Smith's Marketplace with the general merchandise that Fred Meyer currently offers."
The expansion of the grocery offerings will include a larger frozen-food selection.
"That has grown by leaps and bounds," Gilford said. "There are so many frozen foods coming out every day. We're also expanding the bakery, service deli and produce. But we also know that if we interrupt the shoppers' mental picture of the stores' organization, it's not always fruitful. We will try to make this as seamless as possible so customers don't have to relearn the store layout."
Kroger said Smith's and Fred Meyer will retain as many current employees as possible, with positions at the Smith's Marketplace stores and the Smith's Food & Drug Stores. Fred Meyer will provide severance benefits, based on years of service, to employees not retained, Kroger said.
Smith's senior management met with affected employees Tuesday morning. "We want and need them on this team to convert to this new format," Gilford said.
Smith's has 126 stores in Utah, Nevada, New Mexico, Montana, Idaho, Arizona and Wyoming. Fred Meyer operates 134 stores in Oregon, Washington, Idaho, Alaska and Utah. When the transitions and closings are completed, Kroger will have the five Smith's Marketplace stores and 45 Smith's Food & Drug stores in Utah.
"When this is completed and we've made the transition, Fred Meyer will no longer be in the Utah market, but that's not at all a reflection on their success," Gilford said. "They've been very successful. This just takes it one step higher by expanding the grocery store."
Utah will be the first area for Smith's Marketplace stores, but the format might expand elsewhere. "We will get our arms around this and make this a successful outcome and then evaluate moving into other areas," she said.
A concept switch like the one to Smith's Marketplace isn't the first for Kroger. Seventeen Fred Meyer Marketplace stores in Arizona moved to the Fry's Marketplace banner in 2000. Fry's is a division of Kroger.
Kroger's 2,530 supermarkets and multidepartment stores operate in 32 states under two dozen banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith's, Fry's and Fry's Marketplace, Dillons, QFC and City Market. Either directly, through subsidiaries or franchise agreements, Kroger also operates 798 convenience stores, 445 jewelry stores, 442 supermarket fuel centers and 41 food processing plants.
E-mail: bwallace@desnews.com