Ralphs Grocery Company

Ralphs is an American supermarket chain in Southern California. The largest subsidiary of Cincinnati-based Kroger, it is the oldest such chain west of the Mississippi River. Kroger also operates stores under the Food 4 Less and Foods Co. names in California.

History

Ralphs Grocery Company was founded in 1873 in Los Angeles by George Albert Ralphs and his brother, Walter Benjamin Ralphs. Ralphs teamed with S. A. Francis in 1873 to open the Ralphs & Francis store at 5th and Hill – an area which would become the Historic Core of the city in the early 20th century, but was then a mostly residential area with many single-family houses. In 1875, Ralphs’s brother Walter bought out Francis’s share, and the business became the Ralphs Bros. Grocers, specializing in produce. The business boomed. In 1876, they constructed a two-story building at the southwest corner of Sixth and Spring.

In the 20th century, Ralphs became a grocery pioneer, offering self-service markets with checkout stands in distributed locations. The company employed notable architects in designing its stores, and the former Ralphs Grocery Store building built in 1929 in Westwood Village has been photographed by Ansel Adams, declared a Historic Cultural Monument, and listed on the National Register of Historic Places. In the 1980s, it created a chain of hybrid supermarket/warehouse stores called The Giant, which failed, but the concept returned with the company's merger with the Food 4 Less discount chain. In 1968, Ralphs was acquired by Federated Department Stores, based in Cincinnati.

In 1988, Canada-based Campeau Corporation launched a $4.2 billion hostile takeover of Federated, Ralphs's parent. Ralphs would then be put up for sale, with American Stores (owner of rival chain Lucky) making an offer.

In 1992, Federated, now known as Macy's, Inc., sold Ralphs to a group of owners, led by Edward J. DeBartolo Corporation, after filing for bankruptcy two years earlier in 1990. In 1994, Ralphs was acquired by the Yucaipa Companies for $1.5 billion. Yucaipa owned ABC Markets, Alpha Beta, , and Cala Foods. Soon, all ABC Markets, Alpha Betas, and Boys Markets were rebranded as Ralphs. At the same time, Food 4 Less was merged with Ralphs. In 1997, Yucaipa sold Ralphs to Portland, Oregon based Fred Meyer, owner of several chains in the west. Soon, Ralphs Marketplace stores started opening in suburban areas; these stores are based on the Fred Meyer model but without apparel. At the same time, they also acquired the 57-store Hughes Family Markets chain. In October 1998, the parent company, Fred Meyer, merged with Kroger of Cincinnati, Ohio.

In 1999, Ralphs purchased about 30 Albertsons and Lucky Stores, Lucky stores, mostly in Northern California, as well as stores in the Central Coast (California), Central Coast region, and one store each in Bakersfield and Laguna Beach. The stores were divested as a result of the Albertsons and American Stores merger and marked the chain's reentry into Northern California after a short-lived expansion in the 1970s.

In 2005, Ralphs exited the Bakersfield market, closing 3 stores.

Ralphs operated in Northern California until January 2006, when they announced that all but one Ralphs in northern California would close. In August 2006, the one remaining Ralphs in northern California, in Grass Valley, California, Grass Valley, was given a 60-day notice of closure, ending Ralphs' presence in northern California for the second time. Also, in August 2006, Ralphs finalized plans to sell eleven (of thirteen remaining) Cala Foods, Cala-Bell Stores to Harley DeLano, who previously ran the chain.

On July 20, 2007, Ralphs opened a new store on 9th and Hope Street in the South Park (Downtown Los Angeles), South Park neighborhood of downtown Los Angeles. This was the first full-run supermarket downtown in 50 years. In 1950, Ralphs closed a store at 7th Street and Figueroa Street.

In 2023, Ralphs President Tom Schwilke announced plans to open a new Ralphs store within the next two years, the first new store opening in over 10 years.

Today, Ralphs competes with Albertsons (including Vons) and Stater Bros. Its slogan is "Fresh for Everyone," also used by all other Kroger grocery store brands. Ralphs is the current market share leader in Southern California.

2003–04 strike

Ralphs Grocery Company has contracts with the United Food and Commercial Workers, the largest grocery union in the United States. In late 2003 and early 2004, Ralphs lockout (industry), locked out its workers who were members of the UFCW in sympathy with competitor Vons (owned by Safeway Inc.) in Southern California, after the UFCW had declared a strike against Vons. The issues in contract negotiations included healthcare benefits and wage structure, which the supermarkets contended were necessary to reduce costs and remain competitive in the face of the rise of discount chains like Walmart. In March 2004, the strike ended with a Settlement (litigation), settlement regarded as a victory for the grocery chains—new hires would be on a much lower pay scale than existing workers and receive less generous health benefits.

On October 16, 2006, Ralphs agreed to pay $70 million to settle felony charges that it illegally rehired locked out employees using false names and Social Security numbers during the strike. Eligible UFCW members received $50 million of the settlement and the remainder was paid in fines to the federal government.

References

External links

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Ralphs History

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1873 establishments in California
Companies based in Los Angeles County, California
American companies established in 1873
Retail companies established in 1873
Kroger
Private equity portfolio companies
Supermarkets based in California
Supermarkets of the United States
Companies that filed for Chapter 11 bankruptcy in 1990
1968 mergers and acquisitions
1992 mergers and acquisitions
1994 mergers and acquisitions
1997 mergers and acquisitions
Compton, California