Kroger in Cleveland, 1935

Despite a 28% drop in sales from 1929 to 1933 and a number of other challenges, Kroger withstood the onslaught of the depression better than many of its grocery chain counterparts. With nearly 5,000 stores, Kroger was in a dominant position in many of its markets.

One of the “other challenges” came in April 1930, when Kroger chairman William H. Albers resigned to start his own supermarket chain. The Albers Super Markets would become a good-sized player in the Cincinnati and northern Kentucky areas, strongly pushing national brands in their advertising against Kroger’s hot-selling, well regarded private label brands. In 1955, Albers sold out to Atlanta-based Colonial Stores. Beginning in the thirties, Kroger also took on a leadership role in fighting the anti-chain store movement, whose primary target was The Great Atlantic and Pacific Tea Company (A&P), but which constituted a threat to the entire chain store industry. The battle, which played out over nearly two decades, was costly in terms of legal expenses, but also in the form of price reductions necessary to sway public sentiment over to the chains’ side of the argument.

An exciting development for Kroger was the opening of its first departmentalized “superstores” (not to be confused with the much better known Kroger Superstores of the 1970’s). The first of these early superstores opened in 1930 on Government Square in Cincinnati, and similar stores would soon open in Kroger’s other major territories, including Cleveland, Columbus, Louisville, Indianapolis, Chicago, and Madison, Wisconsin. Thirty-four of these deluxe units would be open by 1935.

There were major acquisitions for Kroger from 1928 through 1940, including 85 Cox Grocery stores in the Little Rock area, 58 Oakley Economy Stores in eastern Illinois and western Indiana, and 15 stores purchased from the Model Grocery and Baking Co. of Springfield, Missouri, among others. There was also a divestiture – in late 1934, Kroger sold 53 of its 56 Oklahoma stores to Safeway Stores, Incorporated, citing the difficulty in managing the stores from distant Cincinnati.

Also, a famous Kroger product was born during this period. In 1939, Kroger introduced its special patented process for meat tenderization under the trade name “Tenderay”. Kroger would market their Tenderay beef exclusively until 1942, when it opened the process up to be licensed to other firms. Tenderay, along with older Kroger tradenames Country Club and Big K (which, unlike Tenderay, are still in use) would become a fixture in heartland kitchens for decades.

The photos above are circa 1935 and depict the Kroger store at 2227 Noble Road in Cleveland Heights, Ohio, and appear courtesy of the Cleveland State University Library. Note in the second photo the competing Fisher Foods store right next door. The signage is typical for Kroger in the 30’s. Interestingly, their sign colors during that era were often green, black and white, rather than more familiar Kroger Blue (and “Coral Red”) which came later. Here is a link to a neat film clip from 1947, showing a Kroger store that was probably around ten years old at the time.

All Together Now at Fisher-Fazio's

The Fisher-Fazio family is gathered together for this “family photo” from 1975. Even Uncle Ralph from Chicago drove in, with his bag of groceries from Dominick’s. (Just seeing that 70’s Dominick’s bag makes my arms hurt, when I think back on how many hundreds of those things I lugged from the family gas guzzler’s trunk to our kitchen back then. Definitely more good memories than bad of those days, though…) Along the wall are displays of Heritage House canned goods, Fisher-Fazio’s house brand, that were big sellers in the Ohio and Chicago stores.

Things began to unravel at Fisher-Fazio in the late seventies, with most of their divisions not faring well in the “price wars” of that era. In 1976, the company lost its number one slot in their core Cleveland area to Pick-N-Pay. The California stores, which had never really taken off under Fisher-Fazio leadership, proved to be a drain on the company’s profits and as mentioned were sold off to Albertsons that year. Within a couple of years, they would trim the sails in markets closer to home, including Youngstown and Columbus among others.

In October 1980, the company found itself in serious legal (and public relations) trouble when it was charged in a price-fixing scheme along with competitors Stop-N-Shop and First National Stores, owner of Cleveland’s Pick-N-Pay chain. Executives from the three companies, including Fisher CEO John Fazio, were indicted. Fazio received probation in 1982, and his sentence was commuted two years later. The three companies were ultimately forced to make restitution to Northeast Ohio customers, sending out coupons for $20 worth of free groceries to some one million households.

The company lost one of its major (and only) bright spots in 1981. Unhappy with Fisher's direction, Dominick DiMatteo Jr. bought back Dominick’s, the company his father founded, for nearly $100 million. By that time Dominick’s had grown to 71 stores and second place (behind Jewel) in Chicago market share.

In 1983, Cincinnati-based American Financial Corp., headed by Carl H. Lindner, purchased an interest in Fisher Foods. Lindner is a well-known Cincinnati industrialist, whose interests have included Chiquita Brands International (yep, the banana company is actually based in Cincinnati), United Dairy Farmers (a chain of dairy/convenience stores) and for a time, a major interest in the Cincinnati Reds. In 1984, Lindner’s company would buy out the Fazio family’s holdings in Fisher Foods, ending an era.

The economic difficulties – loss of manufacturing jobs, population decline, etc., which plagued the Cleveland area made for a difficult operating environment, and in 1987 American Financial decided to sell their controlling share in Fisher Foods to a group of familiar names in the Cleveland grocery industry. A new entity, named for a Bedford Heights, Ohio address - “5300 Richmond Road Corporation”, was put together by American Seaway Foods, Rini’s Stop-N-Shop and Rego’s Stop-N-Shop. In a way, the forming of this consortium was reminiscent of the process that reconstituted Fisher Foods back in the sixties. The “5300” company would fold into Riser Foods, the name of which incorporated (sort of) the first initials of the Rini, Seaway and Rego names. In 1997, Riser was absorbed into Pittsburgh-based Giant Eagle.

Fazio's California Adventure

Under management by the Fazio/Costa group, Fisher Foods became widely recognized as one of America’s fastest-growing supermarket chains at the end of the 1960’s, going into the early 70’s. The company had begun a successful expansion program, adding other key Ohio markets to their original Cleveland base. The acquisition of the Dominick’s chain in Chicago was bearing fruit as well, and the purchase of Kroger’s remaining Chicago stores in 1970 would more than double their presence there.

To keep the momentum going, the Southern California market was chosen as Fisher’s next expansion frontier. On June 12, 1972, a purchase agreement was announced between Fisher Foods and the Dayton-based E.F. MacDonald Company, owner of the Shopping Bag supermarkets, a 46-store chain with regional headquarters in San Gabriel, California and stores throughout the SoCal market. MacDonald, known best as the owner of Plaid Stamps, was eager to sell the operation, which had been losing money.

Shopping Bag Food Stores began its existence with one small grocery store on L.A.’s Wilshire Boulevard in 1930. Three years later, Shopping Bag would open its first supermarket, and the company would grow with the area from there, going public in 1954. In 1960, Shopping Bag was merged into Vons Grocery Company, adding its 38 stores to Vons’ 28. The Shopping Bag units would continue to operate under their original name. In 1965, The Federal Trade Commission filed suit against Vons in the U.S. District Court in Los Angeles, alleging that the Vons/Shopping Bag merger served to lessen grocery competition in the area. Initially, Vons won the case, but the Justice Department appealed to the U.S. Supreme Court, who in a landmark ruling the following year ordered Vons to divest the Shopping Bag stores. The whole proceeding seems almost laughable today, considering the favorable eye the FTC has cast upon much larger mergers through the last 30 years or so, truly setting up a “mega-merger’’ climate.

In June 1967, Vons completed the sale of 40 stores (35 Shopping Bags and 5 Vons) to E.F. MacDonald. The MacDonald firm was founded by Elton “Mac” MacDonald, who in 1957 had sold out his 1/3 interest in Top Value Stamps, the brand used by Kroger and Boston’s Stop and Shop, among others. After initially turning away from the trading stamp biz when he ventured off on his own, MacDonald created Plaid Stamps and landed a huge customer for them at the dawn of the sixties– The Great Atlantic & Pacific Tea Company, who had previously resisted the trading stamp trend with vehemence. Eventually, competitive pressures and the pleas of A&P district managers led the company to adopt the stamps in a number of its regions.

A successful supplier to the industry, now MacDonald would try its own hand as a supermarket operator, in arguably the most dynamic market of all. They would modernize some stores, open new ones, and sell off a good number of the smaller units. MacDonald made a bold move in 1969 when they bought out A&P’s 31 supermarkets (adding to the 40 existing Shopping Bags at the time) in the Los Angeles, ending A&P’s presence there. A&P, having decided that they would need twice their present number of stores in Southern California to maintain a profitable operation there, opted instead to throw in the towel. The A&P stores were converted to Shopping Bags.

In 1972, having whittled down the Shopping Bag store count to 46 stores, MacDonald agreed to sell them to Fisher Foods. The stores would be rebranded “Fazio’s-Shopping Bag” and would shift to the ever-popular “every day low price” strategy, ditching trading stamps (Ironically, Shopping Bag gave out Blue Chip Stamps, the standard for most SoCal grocery chains, instead of MacDonald’s own Plaid stamps) along the way. The stores were remodeled, and deli and bakery departments were brought up to Fisher standards. Marshall Italiano was placed in charge, reporting to John Fazio in Cleveland. Ground was broken for a new office and distribution center in City of Industry, and the first all-new Fazio’s-Shopping Bag store was slated to open in the fall of 1974 in Fountain Valley.

The California (ad)venture didn’t last long, unfortunately. The troubled economy of the mid-70’s and Fisher’s growing internal and financial problems were largely to blame. Also, a couple of embarrassing incidents – charges of false advertising and mislabeling – made the news, affecting the company’s reputation. In 1978, the Fazio-Shopping Bag stores were sold to Albertsons.

The photos above are from 1973 and 1972 respectively, and show two Shopping Bag stores freshly rebranded to add the Fazio’s name. If you click on the enlargement of the second photo, you can see three original signs with the classic Shopping Bag logo, two backlit signs above the entrance doors and a neon sign (barely visible) on the right side, near the edge of the photo. Below is a full-page display ad from late 1972, trumpeting the ownership change and new pricing policy.

I’d love to know the location of those two stores. If anyone can advise on that, I’ll gladly give them a free one-year subscription to this site.

Oh wait, it’s already free…
In that case, a free “thank you” instead!

Thanks to Jeff for identifying the store in the second picture as the one located at 1000 E. Valley in Alhambra, and for bringing us up to date on that location: "It was remodeled in the late 70's and again in the 90's. Most of the glass in the front was taken off. This store was later converted into an Albertsons, then a Grocery Warehouse, then a Max Foods, now a Lucky store. That tower lasted until the 2nd remodel".

Jeff has come through for us once again, identifying the first store location as 1611 W Whittier in La Habra. He visited this location and found: What looks like a neighborhood in the back sorta matches.- The brick is still on 2 sides of the building- The Sign is still in the same spot on the store- The light to the left of the sign is present today.- The driveway is there but could have been refigured. The store over the years though has been remodeled at least two times.

Thanks, Jeff!

The fabulous fazio's

By the early 1960’s, Fisher Foods was in trouble. The company began losing ground in the late 1950’s, posting a net loss for 1959. The losses would grow, topping $300,000 in 1963. By 1964, with 90% of Fisher’s stores now losing money, the company was ripe for a takeover. In January of that year, a group of Cleveland investors (which, importantly, was made up of career supermarket operators) bought shares in Fisher totaling approximately 55% of the value of the company.

The group was composed of members of the Stop-N-Shop Super Markets Association (no relation to the New England or California Stop and Shops), a Cleveland-based supermarket cooperative. Several members of the Stop-N-Shop group were previously part of another Cleveland-based cooperative, Foodtown Supermarkets, which was formed in 1948 and sold to ACF-Wrigley supermarkets in 1956. (Thanks to "Traveler" for straightening out my facts on this. See the comments section for this post for more interesting details.) The individuals leading the buyout were Carl and John Fazio and Joe Fana of Fazio’s Stop-N-Shop, Sam and Frank Costa of Costa’s Stop-N-Shop, and Seaway Foods, an Aurora, Ohio-based wholesale grocer. Joining the new management group would be Julius (Julie) Kravitz, the executive director of the Stop-N-Shop association. Interestingly, the prospective new ownership group owned only seven supermarkets between them, compared with Fisher’s over 70 stores at the time. The Fisher name would be maintained for the new corporate entity and for a time on the stores as well.

In February 1965, the group made an offer to buy out the remaining shares of the company from the Fisher, Salmon and Conway families. A stockholders meeting was set for the following month, and despite some very public objections from a few relatively small stockholders, the transaction went through. Fisher Foods had a new, energized group of leaders and a new lease on life.

Right away, the Fisher-Fazio team set about modernizing and upgrading the stores, and placing an increased emphasis on meats, deli, produce and wines. It didn’t take long for sales results to improve, and within the first year profits began to rebound as well. The company began to expand into other Ohio markets, including the Akron area, where the first Fazio’s “Family Center”, a 60,000 square foot food and general merchandise combination store, would open in 1968.

In 1968, Fisher made its first acquisition outside the Ohio market with the purchase of Chicago's Dominick’s Finer Foods, an 18-store chain with locations throughout the city and in the (mostly north) near suburbs. A family owned business with an excellent reputation and strengths comparable to Fazio’s, Dominick’s was still a relatively small player compared to Chicago market leader Jewel Tea, a still fairly strong National Tea, and a still-participating A&P, but that would change in the coming years as Dominick’s would grow tremendously, eventually taking the number-two spot in the market. Dominick DiMatteo, Jr., company president and son of Dominick’s founder, would be named a vice president of Fisher Foods.

Fisher also entered the fast food business in 1969 when it acquired a stake in Columbus-based National Fast Food Corporation, owners of the Arthur Treacher’s Fish and Chips chain. Famous British actor that he was, I remember ol’ Arthur best as the Constable in the movie Mary Poppins, though he played many other film roles. As part of the agreement, Fisher took over territory rights for Arthur Treacher’s in the Cleveland and Chicago markets, totaling at the time over 100 restaurants. One more company Fisher took over during the late sixties was Clabers, a seven store chain of “junior” department stores in the Pittsburgh area.

The new Fazio’s stores sported a fresh, interesting appearance that to my mind preceded the “70’s look” for the industry as a whole by at least a couple of years. In 1967, Fisher opened a 36,000 square foot Fazio's store in the new Midway Mall in Elyria, Ohio, that received very favorable reviews in the supermarket industry press and would set the style for Fazio’s stores into the next decade. This store featured a dark red brick façade, with a cedar-shingled mansard roof above the store entrance and relatively small wood-framed windows. The cedar-shingled motif continued inside the store with rooflike awnings above the delicatessen and bakery departments. Freezer cases were an elegant burnt umber, a contrast to the pastel colors that were popular in years past.

The first five photos were taken between 1969 and 1972 and are typical of the Fazio’s stores of that period. The exterior photo is extremely similar in appearance to the Elyria store mentioned above, and the interior shots show minor differences, but are fairly close as well. Some of you may remember the very 70’s Kraft “Squeez-A-Snak” tubes which are shown in the foreground of the second photo. These were among my Grandmother’s favorites. If I remember right, they came in about four or five flavors, some much less appetizing than others.

The sixth photo, from 1968, shows the entrance to the first Fazio’s Family Center in Akron, Ohio.

It Was Fresher at Fisher's

Fisher Foods, Cleveland’s largest grocery chain for a major chunk of its 80-year history, was founded in 1907 as Fisher Brothers Company. The Fisher Brothers, Manning and Charles, were natives of Jersey City, New Jersey and got their start in the grocery business in New York City in the waning years of the 19th century, where Manning worked for James Butler, a grocer who owned 150 stores in the city. Eager to make their own mark in the business, the brothers set out for the greener pastures of Cleveland and opened their first store there at 4623 Lorain Avenue.

The Fishers were joined in Cleveland by Irish-born Joseph Salmon, who had also worked for Butler, and would manage that first Cleveland store. Years later, upon Manning Fisher’s death in 1931, Salmon would assume the presidency of the company. Manning’s son Ellwood would eventually take the company reins in the late thirties. The company grew quickly, to 24 stores in its first five years, then to over 120 stores by the mid-twenties, surpassing 300 stores in the decade that followed.

Like many supermarket chains, Fisher stayed in step with industry trends. The company launched self-service with their first “Master Market”, a larger (average 12,000 square foot) format that would become their standard, in October 1937. The company would build over 50 of these by the dawn of World War II. Also, as with a large number of other chains, Fisher’s consolidation move towards larger stores would lower their overall store count into the late forties and early fifties. Throughout this period, the company would restrict its market area to the greater Cleveland area, as an Elyria Chronicle-Telegram article put it, “as far west as Oberlin, as far east as Ashtabula, and as far south as Medina and Bedford”.

The photos, in reverse chronological order, are as follows: a 1956 store, unidentified location, from Chain Store Age, the second photo of a brand new Fisher Foods Master Market which opened in Elyria, Ohio in June, 1952 and last, a photo of the very first Fisher Bros. store. The latter two photos are from the Elyria Chronicle-Telegram.

Snow Falling On Fazio's

An early 1971 view of a brand new suburban Cleveland Fazio’s supermarket. This store opened six years after the Fazio and Costa families had bought out the moribund Fisher Foods chain, which was at one time the dominant food chain in the area but by the early sixties had fallen on hard times. By the time the pictured store opened, the company (which still went by the official name of Fisher Foods) was well on their way back to the top.

This store, with its mansard shakeroof design, was typical of new Fazio’s stores of the 60’s and 70’s.