Arizona Republic from Phoenix, Arizona • Page 104

ALL EDITIONS 16 'I'hc Arizona Republic Siiturdiiy, June 11, 1988 Pjp0(m(JJ Wholesale prices ABCO chain to buy Lucky stores in state Percentage change in Producer Price Index, adjusted for seasonal change. Up 0.5 I 1.0 prices up by 0.5 1 05 ib 0jJJIL 0 .0.5 4 no ii Analysts expect some trimming of the combined operations. AHCO could lay off workers and close stores because of an overlap in operations, analysts said. Kenneth Fvans, a professor of marketing at Arizona State University, said AHCO might pare some of Lucky's central management. Lucky has 2,250 employees in its Arizona operations, AHCO has more than 2,700 workers, Rich Jennings, vice president of administration at AHCO, said the company is "working its way through" decisions about management and store changes.

AHCO may close some of its stores that compete within the same trade area, said Judi Hutlerworlh, a senior marketing associate with Iliff, Thorn a Phoenix-based commercial real-estate brokerage company, One office manager of a local food-brokerage company said AHCO officials had been spotted touring Lucky stores Friday. He said food brokers will be watching which grocery wholesaler takes over supplying the Lucky stores, he said. AHCO uses Fleming Foods an Oklahoma City-based company with Valley offices, and Lucky used A.M. Lewis and a Lucky Warehouse in Riverside, Calif. I (0 JAS0ND FMAM '87 '88 Source: Commerce Department Heta store division until 1984.

At that time, a group of Alpha Heta managers and Odyssey Partners arranged a $47 million leveraged buy-owl of 33 stores in Arizona. As part of that deal, American entered a five-year, non-compete agreement with AHCO. Arizona consumers may pay more for groceries because of the merger, said. Gary Giblen, vice president of research at Houston-based Kotan-Mosle a subsidiary of Paine Webber. He said he believes AHCO will eliminate Lucky's everyday low-price strategy.

Supermarkets in the Phoenix area now follow a high-low pricing policy, with stores charging overall high prices but offering specials, he said. "Consumers are usually better off with everyday low pricing because the total supermarket basket costs less." Giblen's January comparison of prices at four grocery chains in Phoenix found lhat 50 items at Fry's, Smitty's and AHCO stores cost at least 10 percent more than at Lucky stores. ABCO, from pupc I'l The deal requires approval from the Federal Trade Commission and from the Department of Justice, Anderson said. It also depends on the purchaser obtaining financing, according to a statement from Lucky, AHCO officials restricted comments to a terse press release. "We are pleased with the opportunity to build upon the strengths of both companies," AHCO president Ld Hill stated in the release.

AHCO operates 38 stores in Arizona 31 in Phoenix, six in Tucson and one in Yuma. With the Lucky purchase, AHCO will operate 76 stores in Arizona. Lucky's22 stores in the Valley will bring AHCO's Valley holdings lo 53. American's takeover of Lucky helped case the sale of Lucky's Arizona operations because of AHCO's former affiliation with American Stores. Many AHCO supermarkets in Arizona were part of American's Alpha 5 acre Hideout $35000 down, 10 interest, Monthly Payments $94.68, Total Price Only $9,900.

935-3297 TRADE YOUR HOME We Will Build Yours ANCYN CUSTOM HOMES 838-4588 PRODUCER, from page I'l percent, compared with hikes i of 5.2 percent in April and 2.6 percent in March. Gasoline prices jumped 3.8 percent last month, but were still only 1.5 percent higher than a year ago. The government's index for wholesale prices at the finished-goods level, minus energy and food, was up 0.3 percent. Analysts consider this a more reliable indicator of underlying inflation because of the month-to-month volatility of food and energy costs. Over the past year, wholesale prices excluding food and energy have risen 2.8 percent.

Leading the May increase in non-food, non-energy items were snaps and detergents, up f.3 percent; woman's clothing, up 0.8 percent; tires, up 3 percent; and prescription drugs, up 0.7 percent. Car prices rose a modest 0.2 percent in May after declining 1 percent in April on manufacturers' rebates. Higher prices also were recorded for cosmetics, household flatware and home electronic equipment, all of which declined in April. Children's clothing prices dropped 1.3 percent after rising slightly more than 0.5 percent in April. The only other product which had a price drop was alcoholic beverages, down 0.4 percent.

The May increase brought the The Arizona Republic overall Producer Price Index for finished goods to 107.5, meaning that a basket of products that cost $100 in 1982 would have cost $107.50 last month, up 60 cents from April. At the intermediate-goods level, which includes items such as flour, fabrics, steel-mill products, lumber and fertilizers, prices in May rose 0.6 percent, compared with a 0.8 percent rise in April. excluding food, prices, for raw commodities such as tobacco leaf, cattle hides, coal and scrap metals rose just 0.3 percent in May, compared with a 1.7 percent jump the previous month. So far this year, wholesale prices are rising slower than consumer prices. For the first five months of 1988, wholesale costs at the finished-goods level are up 3.4 percent.

INVEST IN THE BEST! StatesWest load factor up for May 1982 Rolls Royce 1980 Rolls Royce Silver Shadow 39,000 Miles SCOttSClcllG White with Tan, was $60,000 $49,900 JAGUAR StatcsWest Airlines said it is moving closer to breaking even, filling 34.2 percent of its seats in May. The Phoenix-based carrier's break-even load factor is 43.7 percent, officials said. StatesWest carried 10,021 passen una vvcuauiiu umy $56,995 990-9000 gers in May, up from 8,820 for the same month in 1987, a load factor of 30.6 percent. The regional airline, which offers 54 daily departures, began flying 20 months ago. 82'Delorean ymmmww Very Rare only 23,000 miles $15,990 Sl McDowen Rd Consumer prices through April arc up 4.5 percent.

Highest interest rates paid by credit-worthy, expert says covered that casual users of credit, particularly people who'' pay their moi BUILDER their full credit-card balance each month, do not care about the elimination of interest deductions and have continued buying on credit. Hut only 14 percent of borrowers HIGHEST, from page I'l patch that she and other economists initially misjudged the effect of the law. "1 thought we'd see the dollar amount of outstanding credit at least stabilize or decline a little," she'said. But recent reports indicate that installment borrowing increased 7 percent during April. And revolving credit increased from 24 percent of all credit in December 1986 to 26 percent last March, she said.

Sullivan said economists have dis who do not pay their bill in full each month changed credit cards to take advantage of lower interest rates, she said. Sullivan said borrowers with the largest balances were most likely to consider the tax consequences of their debt. Arizona denied a second area code Independent telephone companies in Arizona and businesses with sophisticated telecommunications equipment also will have to reprogram computers to accept the new dialing pattern. CkmFmwAHif Of TJmd tw, KS i AltUSIl A LIVING TKUST End Probate Worries 400 SQUARE FOOT, 80' PERIMETER PLAYPOOL Bigger Pool More Features Than Some Other Advertised Pools! Call and Compare! Features include: Permits engineered plans Pool layout Normal excavation Schedule 40 plumbing Up to 15 filter run Connections 1 American Products skimmer 3' to 5' to 3' depths (not to exceed 6') 1 100 sq. ft.

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The time between disconnecting a phone and reassigning the number has been shortened, Evers said. The company also has considered releasing some of its test numbers and prefers not to reserve blocks of numbers for anticipated growth of a business. Mountain Bell engineers said it will take a two years to make the switch to interchangeable dialing in Arizona. Evers said some, switching equipment will be reprogrammed locally, but other equipment must be returned to manufacturers for new circuitry. Next Seminar! JUNE 15 Crestview Restaurant 10001 K.H.

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