FTC GETS SAY ON SCHNUCKS DEAL

The Federal Trade Commission will have the final say about a corner of the retail grocery market in Cape Girardeau.

That corner, at William and Sprigg streets, has been home to a National Food Store since 1959.

But the spacious supermarket at 121 S. Sprigg, and 59 other National Super Markets Inc. operations, have been purchased by Schnucks Markets Inc., subject to FTC approval.

"We'd like to see a store remain in this location," said Jim Sturm, manager of the local National Del-Farm. "We have built up a good customer base here. A lot of people depend on this store."

Dennis Marchi, manager of the Schnucks store here, said he doesn't know what will happen in Cape Girardeau because of the purchase.

"It's in the hands of the government," he said.

Meanwhile, National Del-Farm will operate at its Sprigg site.

"It's business as usual," Sturm said. "As time progresses, I'm sure we'll learn more about what will happen."

The FTC has to approve any grocery industry combination valued at more than $15 million.

Schnucks officials expect the FTC to require National to sell some stores to other companies.

Last week, Loblaw Companies Ltd., a Toronto company and parent company of National Super Stores, announced it planned to sell its 60 National stores to Schnucks and the assets of National's 29-store New Orleans Division to Schwegmann's Giant Super Markets Inc., a New Orleans-based family-owned chain of 18 supermarkets.

Among the stores Schnucks would buy are 53 in the St. Louis metropolitan area, plus stores in Cape Girardeau, Rolla, Hannibal, Carbondale, Ill., Springfield, Ill., and Litchfield, Ill.

In fiscal 1994, gross revenues of Loblaw's St. Louis and New Orleans divisions totaled more than $1 billion, similar to the Schnucks Super Stores Inc., which also sold more than $1 billion last year.

Schnucks Markets, founded in St. Louis in 1939, is a family-owned regional supermarket company that operates 64 stores in Missouri, Illinois, Indiana and Kansas.

The Cape Girardeau store opened in 1976, and quickly became one of the city's top two retailers.

Schnucks expects to hire a significant number of National's employees, Craig D. Schnuck, chairman and chief executive officer of Schnucks Markets, said in a news release this week. But, Schnucks will honor National's request not to contact National employees until 15 days after the transaction receives preliminary FTC approval, the news release said.

Schnucks is also negotiating to offer customers the President's Choice line of products, National's store label.

BUYER AND SELLER

Schnucks:

Headquarters: 11420 Lackland Road, St. Louis.

Chief executive: Craig D. Schnuck.

Employment: 12,000 total, 9,500 in St. Louis area.

Operates: 64 supermarkets, including 50 in St. Louis area.

Sales: More than $1 billion in 1994.

Ownership: Family-owned. Founded in St. Louis in 1939.

National:

Headquarters: 6050 Lindbergh Blvd., Hazelwood, Mo.

Chief executive: Harold Seitz.

Employment: 11,000 total, 6,000 in St. Louis area.

Operates: 89 supermarkets, 53 in St. Louis area, 29 in New Orleans and 7 in other Missouri and Illinois markets.

Sales: More than $1 billion in 1994.

Ownership: Loblaw Companies Ltd. of Toronto.