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For the former Australian grocery chain, see Jewel Food Stores (Australia).
Jewel-Osco
Formerly
  • Jewel (1899–1902)
  • Jewel Tea Company (1902–1967)
  • Jewel Companies, Inc. (1967–1991)
Company typeSubsidiary
IndustryRetail
Founded1899 (127 years ago) (1899) in Chicago, Illinois, U.S.
FounderFrank Vernon Skiff
HeadquartersItasca, Illinois, U.S.
Number of locations
189 (2025)[1]
Area served
Illinois, Iowa, and Indiana
Key people
Mark Laryea (president)
ProductsBakery, dairy, deli, frozen foods, grocery, meat, pharmacy, produce, seafood, snacks and flowers
Servicessupermarkets/food-drug stores
ParentAmerican Stores (1984–1999)
Albertsons (1999–present)
Websitejewelosco.com

Jewel-Osco operates as a supermarket chain primarily serving the Chicago metropolitan area, with its headquarters situated in the western suburb of Itasca, Illinois.[2] As of 2025, the company maintains 189 retail locations spanning northern, central, and western regions of Illinois, eastern parts of Iowa, and segments of northwest Indiana.[3] Since 1999, Jewel-Osco has been a fully owned subsidiary of Boise-based retailer Albertsons. The company’s origins trace back to a door-to-door coffee delivery enterprise, which gradually expanded to include non-perishable grocery deliveries before evolving into conventional grocery stores and supermarkets. Before being acquired by American Stores in 1984, Jewel had grown into a substantial multi-state holding firm managing various supermarket chains and other retail outlets nationwide under multiple brand identities.

History

File:Jewel Food Logo.PNG
Logo used by Jewel Food Stores until 1980
File:Jewel Osco logo.svg
Former Jewel Osco logo

Origins in home delivery

Founded in 1899 by Frank Vernon Skiff in Chicago, the company began as a door-to-door delivery service specializing in coffee. In 1902, Skiff joined forces with his brother-in-law Frank P. Ross, leading to the rebranding of the business as the Jewel Tea Company. By 1903, the operation managed six delivery routes, expanding to twelve by 1904 with service areas extending to Michigan City, Indiana; Kankakee, Illinois; and Kewanee, Illinois.[4] By 1915, the number of routes had grown substantially to 850. During the early 20th century, the company operated a "coffee train" consisting of 40 cars transporting coffee beans imported from South America.

The First World War brought significant challenges due to rising costs for raw materials and production. Furthermore, the U.S. government requisitioned a vital manufacturing facility used by Jewel. These factors led to financial difficulties by 1919. Recovery was achieved within a few years under new leadership from retired Navy Commanders John M. Hancock and Maurice H. Karker, both of whom applied their wartime logistics expertise gained as supply officers.[5]

In 1929, despite the onset of the Great Depression, Jewel constructed a new office building along with warehouse and coffee roasting facilities in Barrington, Illinois. This development provided hundreds of jobs locally.[6] The Barrington site served as the central headquarters and distribution center for both home delivery services and retail food operations until the completion of a new warehouse-office complex in Melrose Park in 1953.[7]

By 1949, Jewel operated delivery routes numbering 1,876 across 43 states primarily serving customers in smaller towns. Urban customers had access to 154 company-owned grocery stores.[4]

The home delivery service expanded its product offerings over time; by 1981 it included approximately 350 grocery items and an additional 10,000 general merchandise products. That year, Jewel divested its "Jewel Home Shopping Service" division by selling it to employees as part of shedding its original business model.[8] At that point, this division serviced predominantly small-town customers along roughly 1,000 routes spanning 42 states.[9] It was reorganized as a cooperative owned by about 700 members called "J.T.'s General Store," where route salespeople operated as independent contractors.[10]

In October 1994, management acquired assets from "J.T.'s General Store" forming "J.T. Dealers Sales and Service." By the following year, this entity was serving approximately 60,000 customers across 250 routes in 35 states.[11]

Grocery stores

The company's growth persisted through the mid-1900s. In 1932, Jewel purchased the Chicago division of the Canadian company Loblaw Groceterias, Inc., which operated a network of 77 self-service outlets,[12] alongside four Chicago grocery locations previously run by Middle West Stores Company. These were rebranded as Jewel Food Stores.[13] Two years later, in 1934, Jewel Food Stores merged with the Jewel Tea Company. By 1937, Jewel Tea Company had acquired an eight-story facility in Chicago's Central Manufacturing District, which served as the headquarters for Jewel Food Stores until 1954.[14]

The parent company retained the "Jewel Tea Company" designation until 1967, when shareholders approved renaming it Jewel Companies, Inc. to better represent its diversification into various sectors.[15] That same year, the company became publicly traded on the Midwest Stock Exchange.[16]

Eisner acquisition and expansion south

In 1957, Jewel expanded by acquiring Eisner Food Stores, a chain based in Champaign, operating in downstate Illinois and later extending into west central Indiana cities such as Lafayette, West Lafayette, and Bloomington.[17] This marked a pivotal moment as Jewel retained Eisner as an independent division within its corporate structure, allowing the stores to continue operating under their original brand—a strategy that influenced future acquisitions.

Following American Stores' hostile acquisition of Jewel in 1984, cost-cutting measures led to integrating Eisner fully into Jewel by rebranding all Eisner outlets under the Jewel banner.[18][19] Subsequently, many former Eisner assets were gradually divested. Among the initial disposals was the Eisner warehouse in Champaign in 1986.[20] The closure of this warehouse led to decreased profitability for many former Eisner locations due to reliance on the more distant Melrose Park warehouse for supply distribution, which justified shutting down several stores.

By 1990, Jewel had sold off its west central Indiana outlets—three stores in Lafayette and two in Bloomington.[21] Additionally, former Eisner locations in central Illinois were closed over time: Decatur in 1995,[22] Champaign-Urbana in 1998,[23] and Springfield in 2006.[24]

Expansion into Non-Food Retail

In 1961, Jewel expanded its portfolio by acquiring two rapidly growing retail chains outside the food sector: Chicago-based Osco Drug stores and Turn Style, a discount department store chain headquartered in Brighton, Massachusetts. These acquisitions were strategic moves to enhance their food retail operations by creating comprehensive shopping destinations, exemplified by the development of Family Centers and combined Jewel-Osco outlets (including Eisner-Osco, Star-Osco, Buttrey-Osco). By integrating Osco and Turn Style, Jewel not only diversified into non-food retail but also broadened the geographic reach of its core food distribution network, as these companies operated in different regions.

Further diversifying its retail interests, Jewel entered the home improvement sector with the 1972 purchase of Republic Lumber.

Growth from the 1960s through the 1970s

Throughout the 1960s, Jewel pursued growth by acquiring multiple retail chains.

The company bolstered its grocery store presence by purchasing Star Market, based in Cambridge, Massachusetts in 1964, and Great Falls, Montana-originated Buttrey Food Stores in 1966. These additions complemented their existing Jewel and Eisner grocery chains.

The Star Market acquisition also brought Jewel control over Brigham's Ice Cream, which had been under Star's ownership since 1961. However, Jewel divested Brigham's in 1982.

In 1965, Jewel ventured into convenience stores with the launch of Kwik Shoppe, a brand that was soon rebranded as White Hen Pantry within months.

Prior to 1970, Jewel's stores were predominantly situated along main city streets. Between 1970 and 1990, the company shifted towards freestanding store formats featuring ample parking spaces. Throughout the '60s and '70s, many Jewel-Osco stores operated as adjacent but separate units; however, post-1983 developments favored fully integrated stores combining both grocery and drug departments under one roof. Currently, customers experience a unified shopping environment where purchases from either Jewel or Osco can be made at any register, merchandise is intermixed throughout the store, and a single phone number serves both divisions. Despite this integration, each segment maintains its distinct public identity as either a "food store" or a "drug store."

The inaugural Jewel-Osco combination stores opened in 1962. The first Family Center under this brand debuted at Chicago’s Appleton Plaza Shopping Center in January of that year.

During the 1970s, Jewel expanded into Michigan with five new stores but exited that market by closing all locations in 1996.

In 1971, Jewel entered Wisconsin by acquiring eight underperforming Kroger stores and rebranding them as Jewel. After operating there for about a decade, all Wisconsin stores were closed in 1980 and sold to Sentry Foods. The company did not reestablish a presence in Wisconsin until 1995.

Until 2010, although housed within the same building, Jewel and Osco maintained separate management structures, ordering systems, budgets, and staff. A cost-reduction initiative that year consolidated oversight under a single store director for both operations.

In 1978, Jewel Companies, Inc. proposed acquiring Skaggs Companies, Inc. through a stock exchange that would have retained Jewel’s Melrose Park headquarters rather than relocating to Skaggs' Salt Lake City base. However, Skaggs ultimately rejected this merger offer after several months. At that time, Skaggs operated 229 stores.

Following six challenging years marked by unsuccessful marketing strategies and operational difficulties for Jewel—and with Skaggs growing stronger—the latter executed a hostile takeover of Jewel under its new corporate identity: American Stores.

American Stores

File:Jewelosco1.jpg
A Jewel-Osco combination store in Chicago, Illinois, as seen in May 2007 (Store #3349)

In 1984, American Stores initiated a bid to purchase the Jewel Companies. Despite opposition from Jewel Companies, Inc. chairman Weston Christopherson against merging, Sam Skaggs orchestrated a hostile takeover. On June 1, 1984, American Stores presented a $1.1 billion offer to acquire 67% of Jewel's outstanding shares at $70 each.

For a fortnight, Jewel's leadership remained silent regarding the proposal, even during a contentious shareholders' meeting where investor groups holding 20% of the company's stock favored discussions with American Stores. Eventually, on June 14, Sam Skaggs and Jewel president Richard Cline reached a settlement following an overnight negotiation. American Stores increased its bid for Jewel's preferred stock, bringing the total offer to $1.15 billion in cash and securities. Consequently, Jewel abandoned its defensive plan to acquire Household International Inc., the parent company of California's supermarket chain Vons, and accepted American Stores' proposal. Shortly after, American Stores divested Buttrey Food Stores (1990),[25] Star Market (1994),[26] and White Hen Pantry (1985)[27][28] to reduce debt and for strategic purposes.

Expansion during the 1990s under American Stores

American Stores ventured into the Florida market in 1989 by launching Jewel-Osco stores operating as an independent division separate from the Midwestern operations.[29][30][31][32] This marked Jewel’s return to Florida five years after closing all Jewel-T discount food outlets in 1984. The state was considered promising due to the significant population of Chicago transplants.[33] However, after three years, American Stores exited Florida by selling these stores to Albertsons in 1992.[33]

In an effort to unify subsidiary brands under a nationally recognized banner, American Stores rebranded some Skaggs-Alpha Beta outlets as Jewel-Osco in September 1991. The Skaggs-Alpha Beta stores in Texas, Oklahoma, New Mexico, and Arkansas—totaling 76 locations—were renamed Jewel-Osco, extending the chain’s reach into the Southwest.[34][35] Within six months, American Stores sold all these Jewel-Osco stores in Texas, Oklahoma, Arkansas, and Florida to Albertsons,[33][36] though it retained the New Mexico locations for several more years.

By 1998, American Stores converted its New Mexico Jewel-Osco outlets to Lucky/Sav-on—a grocery and drugstore brand already established in neighboring Arizona.[37] Following Albertsons’ acquisition of American Stores later that year,[38] these stores were rebranded again as Albertsons Sav-on in 1999.[39]

Under American Stores’ ownership, Jewel made a comeback in Wisconsin by opening a new Jewel-Osco store within a Kenosha shopping center in 1995.[40] The brand further reestablished itself in Milwaukee in 1998 by acquiring one Pick 'n Save location and four Cub Foods stores and converting them into Jewel Osco outlets.[41][42][43]

Albertsons and SuperValu

In 1999, Albertsons completed the acquisition of American Stores' assets, which included the Jewel and Jewel-Osco chains.[38][44]

Seven years later, Albertsons underwent a division under new ownership. On May 30, 2006, shareholders consented to dismantle Albertsons. As a result, SuperValu purchased all Jewel Food Stores and Jewel-Osco locations except for those in Springfield, Illinois. Two Springfield outlets were acquired by an investment consortium led by Cerberus Capital Management and subsequently sold to Niemann Foods.[45] Meanwhile, all standalone Osco drugstores were purchased by CVS Pharmacy.[46] The Osco brand remains in use for pharmacies located within Albertsons, Jewel, as well as Shaw's and Star Market stores.

On January 5, 2007, SuperValu revealed plans to divest its Jewel-Osco locations situated in the Milwaukee region.[47][48] Pick 'n Save agreed to acquire five of these fifteen stores.[49] Additionally, Lena's Food Market purchased two other locations.[50] For any remaining stores not sold by the end of March, SuperValu notified employees that closures would occur.[51]

In early 2008, the headquarters for the Illinois-based Jewel-Osco division relocated from Melrose Park to Itasca.[52]

Jewel Express

Albertsons initiated the integration of fuel pumps alongside a modest convenience store at one of its Eagle, Idaho locations in 1997. Following the positive results of this pilot, the company planned to extend this model to all suitable stores where local regulations permitted, branding the initiative as Albertsons Express.

After acquiring American Stores in 1999, Albertsons aimed to implement the Albertsons Express concept across the newly acquired chains. For instance, Jewel Food Stores, serving the Chicago region, began preparing for gasoline sales under this program. The inaugural Jewel Express station was launched in October 2000 at a Jewel-Osco site in South Elgin. This facility featured six fuel pumps and a 2,000-square-foot convenience outlet. Jewel anticipated opening several more stations before year-end and targeted up to 30 locations within the Chicago area for development.

In 2009, Supervalu sought to boost revenue by enhancing the Express format. This included expanding the convenience store footprint, strengthening marketing connections with the primary grocery store, and adding car wash services. Despite these efforts, financial improvements did not materialize as expected. Consequently, in 2011 Supervalu announced its exit from the fuel retail business. It planned to divest or shut down all fuel stations acquired through the Albertsons purchase, which encompassed 29 Jewel Express sites. Of these, 27 were slated for sale to Alimentation Couche-Tard, the parent company of Circle K, while any remaining unsold outlets were to be closed. Some of the acquired Circle K locations were rebranded to offer Shell fuel products.

However, not every Jewel Express station was closed or converted into Circle K stores. Two locations—one in East Moline, Illinois and another in Moline, Illinois—have continued operating under the Jewel Express brand.

Urban Fresh

In 2008, SuperValu transformed a former Sunflower Market location on Clybourn Avenue into an Urban Fresh by Jewel, a more compact format compared to standard Jewel stores, emphasizing premium and organic selections. This particular store ceased operations on October 31, 2009, and the Urban Fresh concept was not expanded to additional locations.

LEED certified

Jewel-Osco inaugurated its inaugural LEED certified outlet in October 2008, situated at the intersection of Kinzie and Des Plaines in Chicago. Constructed utilizing recycled materials, this store diverted 98% of its construction waste from landfills. It incorporated a rooftop garden, installed water-efficient fixtures, employed refrigerants that do not harm the ozone layer, featured a refrigerant leak detection system, and utilized energy-saving lighting technologies.

Today

File:Map of stores owned by Albertson's in the United States.svg
Locations of Jewel-Osco marked in purple, ACME in red, Shaw's in orange, and Albertsons in blue (1995–2007)

Jewel-Osco currently has a workforce exceeding 45,000 employees. It commands approximately 45% of the grocery market share within Chicago,[44] with the Safeway Inc.-owned Dominick's chain previously holding second place at 15% before its shutdown.[53] Approximately 80% of households across the Chicago metropolitan area patronize Jewel-Osco stores monthly.[54]

On January 10, 2013, SuperValu announced an agreement to sell Jewel food stores to Cerberus Capital Management for $3.3 billion.Cite error: The opening <ref> tag is malformed or has a bad name This transaction was finalized on March 21, 2013.Cite error: The opening <ref> tag is malformed or has a bad name

Acquisition of Strack & Van Til

On May 15, 2017, Jewel-Osco submitted an offer to acquire all 19 locations of Strack & Van Til grocery stores for $100 million. However, this proposal did not succeed, and the stores were ultimately purchased at the bankruptcy auction by the Strack and Van Til families in partnership with the Indiana Grocery Group.

Past ventures

Throughout its history, Jewel has explored various retail concepts. Notably, it introduced the first generic brand product line in 1977. These items were packaged plainly, featuring only a list of ingredients, a UPC code, and mandatory nutritional details on a simple white package accented with an olive-green stripe reminiscent of military design. In the early 1990s, this generic brand was rebranded as "Econo Buy."

Jewel Grand Bazaar

In 1973, Jewel Companies launched an innovative store called the Jewel Grand Bazaar on Chicago’s southwest side, occupying an entire city block at the northwest corner of 54th Street and Pulaski Road. This location offered bulk packaging options, complimentary samples during weekends, and operated 24 hours a day. The Grand Bazaar remained operational from its opening in 1973 until it was converted into a conventional Jewel-Osco combo store in the 1980s.

A second Grand Bazaar opened in 1974 at 87 W. 87th Street in Chicago, followed by a third location in 1977 at 6505 W. Diversey within the Brickyard Mall. The fourth store debuted in Franklin Park in 1975, marking the first suburban Grand Bazaar.

During the 1990s, the Diversey Avenue Grand Bazaar transitioned into a standard Jewel grocery store but retained some hallmark features such as bulk food offerings. When the Brickyard Mall underwent redevelopment in 2003, its Grand Bazaar was demolished and replaced by a smaller Jewel store. Rockford, Illinois also hosted a Jewel Grand Bazaar that began operations in 1976; it was converted to a non-union Magna store in 1983 and closed its doors in 1997. Additionally, there was a Grand Bazaar located at Grand Avenue and Kostner Avenue on Chicago's West Side. The last store operating under the "Grand Bazaar" format opened in 1975 at Grand Avenue and Mannheim Road in Franklin Park and is currently functioning as a Jewel-Osco. Precise records from the Chicago Tribune or Chicago Sun-Times do not specify when these stores were either closed or converted to different formats.

Turn Style

Main article: Turn Style

In 1961, Jewel Companies, then known as Jewel Tea, purchased a discount store chain based in the Chicago area called Turn Style. Throughout the 1960s, this chain experienced moderate success. Several Turn Style outlets were merged with Jewel's grocery brands to create Family Centers. The inaugural Turn Style Family Center debuted in Racine in March 1962.[55] By 1978, 19 out of 22 Turn Style locations were sold to May Department Stores and rebranded under the Venture banner.[56][57] The remaining stores were transformed into sizable Osco Drug Stores.

Jewel T

During the late 1970s and early 1980s, Jewel Companies operated a no-frills grocery concept called Jewel T (pronounced "Jewel Tea," referencing the company's former name). These stores were typically small—around 8,000 square feet compared to the standard 30,000 square feet of full-service supermarkets—and offered a limited range of canned, dry, and non-perishable goods at significant discounts.[58]

To prevent overlap with their established markets in the Midwest and North East Atlantic regions, Jewel T launched its first store in New Port Richey, Florida in 1977,[59] quickly followed by two additional stores in the St. Petersburg area within the same year.[60] Expansion continued into Pennsylvania by 1978, where many suburban Philadelphia families recall shopping during the gas crisis era for items like powdered milk, frozen pretzels, and bulk frozen cherry pies.[61] By 1979, Jewel T had entered the Atlanta market.[62] At the start of that year, Jewel T operated roughly 30 stores across two states,[62] growing to 44 stores spanning four states by June.[63]

By late 1979, the chain had expanded to approximately 87 locations across Florida, Georgia, Texas, Pennsylvania, Delaware, New Jersey, Tennessee, and Alabama.[64] In January 1980 alone, Jewel T opened eight outlets in the competitive Southern California market.[65] The following year saw further growth with new stores in Atlanta[66] and the opening of its 150th location in Louisiana.[67]

At its peak in 1981, Jewel T operated 150 stores distributed over ten states primarily in the Mid-Atlantic region, Southeast, Gulf Coast, Deep South, and Southern California. However, it faced challenges competing against full-service supermarkets that retaliated by lowering prices—sometimes below cost—on the limited product lines that Jewel T specialized in.[68] Over subsequent years, unprofitable stores were gradually divested. By early 1984, approximately 131 outlets remained.[69]

In March 1984, all 21 Southern California Jewel T locations were shuttered due to lack of profitability.[69] Seven leases along with most inventory were sold to 99 Cents Only Stores.[70]

A few months later in June 1984, the remaining chain was sold off in two separate deals: a group of managers acquired 28 Texas stores while Save-A-Lot purchased the other 77 stores located in Florida, Georgia, Pennsylvania, and New Jersey.[58][71]

Republic Lumber

In 1972, Jewel Companies ventured into the hardware and home improvement sector through the acquisition of Republic Lumber. By 1979, Jewel, operating under its Osco division, divested four out of five Republic Lumber outlets to R & L Lumber, the parent organization of Handy Andy Home Improvement Center, while shutting down the remaining store. These locations were situated on Chicago’s west side at 4052 W. Grand Ave (a site originally opened by Jewel in 1957 to mark its 25th anniversary), as well as in Oak Lawn, Arlington Heights, and Chicago Heights. Early that same year, the fifth branch located in Norridge was closed due to a lease non-renewal; this site subsequently became a Joseph Lumber store.

President's Choice house brand

Beginning in 1992, while operating as a subsidiary of American Stores, Jewel-Osco introduced the Canadian-origin President's Choice brand to its product lineup. President's Choice is a private label developed and marketed by Loblaw Companies Limited based in Toronto, Ontario. Loblaw generates additional revenue by licensing President's Choice products to retailers outside its core markets. Under a marketing agreement with Loblaw, American Stores held exclusive distribution rights for President's Choice within its territories. This partnership ended following Albertsons’ acquisition of American Stores. In 2011, Supervalu replaced President's Choice at Jewel with its proprietary private labels Culinary Circle and Wild Harvest.

Organizational philosophy

The 1972 publication The Jewel Concepts, authored by senior executives at Jewel, emphasized corporate social responsibility, forward-looking strategies described as "watching the horizon," and supporting youth development initiatives.

In an article from the Illinois Retail Merchants Association website, former Jewel-Osco chairman Don Perkins highlighted the company’s longstanding focus on employee-centered values. A notable example was the "first assistant" management philosophy. This approach required higher-level managers to view themselves as supporters of their teams. At the store level, managers acted as "first assistants" by engaging personally with staff—addressing concerns, offering solutions, and applying flexibility to meet employees’ needs. In turn, floor employees were expected to serve as "first assistants" to customers.

Jewel also demonstrated innovation by fostering collaborative relationships with vendors during a period when such partnerships were uncommon.

Active Locations

  • The following Jewel-Osco outlets are under the ownership of Albertsons LLC:
    • A total of 168 Jewel-Osco and Jewel stores situated throughout the Chicago metropolitan region, including parts of northwestern Indiana.
    • An additional 10 Jewel-Osco and Jewel stores positioned in Central and Western Illinois as well as in Clinton, Iowa.

Former Locations

  • Several past Jewel-Osco or Jewel establishments have transitioned to Niemann Foods and now operate under the County Market brand:
    • Two Jewel-Osco stores in Springfield, Illinois, initially acquired by Cerberus.
  • All standalone Osco drugstores, numbering 90 across Indiana, Illinois, Missouri, Kansas, and Wisconsin, were divested to CVS and subsequently rebranded as CVS/pharmacy.
  • The two southern Wisconsin outlets located just north of the border in Kenosha and Racine have both ceased operations.

See also

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  67. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named ll-1981sep19
  68. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named pi-1981aug26
  69. ↑ 69.0 69.1 Cite error: Invalid <ref> tag; no text was provided for refs named wsj-1984mar27
  70. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named lat-1991nov28
  71. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named pi-1984jul31

Further reading

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External links

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