National Tea

National Tea Company

Company type	Private (formerly)
Industry	Grocery store chain
Founded	January 1, 1899 (1899-01-01) in Chicago, Illinois, United States
Founder	George S. Rasmussen, Thorvald Rasmussen
Defunct	1995
Fate	Acquired by Schnucks Markets; brand discontinued
Headquarters	Chicago , United States
Area served	Midwestern United States
Products	Groceries
Number of employees	~20,000 (1955)
Parent	Loblaw Companies (from 1955 to 1995)

The National Tea Company (commonly abbreviated as NATCO and informally called National) was a grocery store chain based in the Midwestern United States during the 20th century.

Origins

Established in 1899 in Chicago, Illinois by Danish immigrant George S. Rasmussen alongside his brother Thorvald, the company expanded to roughly 160 outlets by 1920, generating nearly $13 million in yearly revenue. By the close of the 1920s, National Tea operated more than 600 stores solely within the Chicago region, with an additional 1,000 locations across the country. Annual sales reached approximately $90 million. Although numerous outlets were shuttered or sold during the Great Depression, National Tea maintained its position as one of the top ten grocery chains nationwide for much of the century.

A 100-share National Tea Co. stock certificate from 1929.

A 100-share National Tea Co. stock certificate from 1929.

Acquisition by George Weston and Growth

By 1955, with annual revenues exceeding $600 million (~$Template:Format price adjusted for Template:Inflation/year) and a workforce nearing 20,000 employees across the country, National Tea was acquired by George Weston Ltd., a prominent Canadian grocery company later known as Loblaw Companies. The bulk of National’s stores were situated along the Mississippi Valley, including locations in Louisiana. Throughout the 1950s, the chain expanded by acquiring approximately 500 additional stores through purchases of smaller competitors.

Eventually rebranded as National Supermarkets, operations were concentrated in Missouri, Illinois, Indiana, Minnesota, and Louisiana. The chain held a significant presence in metropolitan areas such as St. Louis, Indianapolis, and New Orleans. In 1976, Loblaw divested some of its outlets—63 stores—to The Great Atlantic & Pacific Tea Company (A&P).

Acquisition by Schnucks and Subsequent Decline

In 1995, ownership of National Tea transferred to Schnucks Markets from Loblaw Companies. Shortly after this acquisition, Schnucks obtained authorization from the Federal Trade Commission to sell National Tea’s New Orleans division to Schwegmann Giant Super Markets based in Metairie, Louisiana. This division subsequently changed hands to A&P before being sold to Rouse Markets in 2007. National had secured second place in the St. Louis market by acquiring former locations and a distribution center previously owned by Kroger, following Kroger’s exit from St. Louis in 1986. Throughout the 1970s and ’80s, Kroger and National competed fiercely for second and third place positions within that market area. To prevent Schnucks from dominating too large a share of St. Louis’s market, regulatory requirements compelled it to divest certain National store locations; these were sold to James Gibson, who was later convicted for fraud involving structured settlements.

National Supermarkets no longer exists as an independent retail entity.

External links

• "Comeback at National," Time Magazine, October 31, 1955
• A Historical Overview of National Supermarkets