Fry's Food and Drug

Beginnings

Fry's was founded in 1954 by Donald Fry in El Sobrante, California. A marker placed at the intersection of San Pablo Dam Road and La Colina Rd identifies this spot. With the help of his brother Charles, the chain expanded into the Phoenix market in 1960. Fry's was sold in 1972 to Dillons, based in Hutchinson, Kansas. (The sons of Charles Fry used the proceeds from the sale to launch Fry's Electronics in 1985; it was otherwise separate from and unaffiliated with the grocery chain.) Dillons merged with Kroger in 1983.

Fred Meyer and Kroger merger

In October 1998, Fred Meyer, parent company of Smith's Food and Drug based in Salt Lake City, announced a strategic merger with Kroger, based in Cincinnati, Ohio. Several months later, in May 1999, the Federal Trade Commission (FTC) approved the merger of the two companies, named The Kroger Co.

Arizona and Texas were the only two of 31 states where there was an overlap of stores and brands from the merger. The Kroger Co., choosing to operate with one brand in the Arizona market, rebranded most Smith's Food & Drug Centers as Fry's Food & Drug Stores, though Smith's Food and Drug Centers in Kingman, Bullhead City, and Lake Havasu City remained unchanged (perhaps because of their proximity to Nevada and the Las Vegas market, where Kroger retained the Smith's brand). Fry's Phoenix Distribution Center and administrative offices were moved into the more modern Smith's Food and Drug Distribution Center and office space in the west Phoenix suburb of Tolleson.

Fry's Marketplace is a multi-department store that offers full-service grocery, pharmacy and general merchandise including outdoor living products, electronics, home goods and toys. Ranging in size from 80,000–105,000 square feet (7,400–9,800 m2), the Marketplace stores are smaller than the original Fred Meyer stores. The Marketplace format was derived from the Fred Meyer concept but on a smaller scale and has since expanded to other Kroger divisions (Ohio, Virginia, Texas, etc.), including the Smith's Food & Drug Centers Division in Utah.

Fry's Marketplace started out as Smitty's, Arizona's first multi-department store. Smitty's was similar to a Walmart Supercenter (but on a smaller scale) and even had a food court with four branded fast food options (such as Taco Bell). Smitty's notably carried the President's Choice brand. In 1996, Smitty's merged with Smith's Food and Drug Centers. In 1997, after the Fred Meyer–Smith's merger, Fred Meyer updated and revitalized the Smitty's concept (naming the stores Smitty’s Marketplace) and in January 1999, all Smitty's stores were renamed Fred Meyer Marketplace, ending the Smitty’s name. During this time, management of Smitty’s changed from Smith's Food and Drug to Fred Meyer. Later that year, construction also started on a full size Fred Meyer store in Phoenix, at 35th Avenue and Bethany Home Road, with plans to build more Fred Meyer stores in the Phoenix metro.

In June 2000, Kroger transferred the management of all Fred Meyer stores in Arizona to Fry's Food and Drug. The Fred Meyer stores were rebranded as Fry's Marketplace, unifying the stores under the Fry's brand. The full size Fred Meyer store in Phoenix was completed but never opened and was later demolished to build a Walmart, as the store was too large for Fry's to use, with Fred Meyer’s expansion plans for Arizona scrapped.