Randalls

Randalls Food & Drug L.P.
Company type	Subsidiary
Industry	Retail (Supermarket)
Predecessor	Randalls Food Markets
Founded	July 4, 1966; 60 years ago in Houston, Texas, U.S.
Founder	Robert Randall Onstead, R. C. Barclay, Norman N. Frewin, T.A. Morgan
Headquarters	Houston, Texas, United States
Area served	Texas
Key people	Paul McTavish (Division President), Leslie Neslson (Vice President), Ronnie Brennan (Vice President)
Products	Bakery, dairy, deli, frozen foods, meat, pharmacy, produce, seafood, snacks, alcoholic beverages
Number of employees	16,000 (2021)
Parent	Albertsons Companies

Randalls Food & Drug L.P. is a U.S.-based supermarket chain managing 32 outlets across Texas under the Randalls and Flagship Randalls brands, with 13 stores in Houston and 15 in Austin as of May 2020. It functions as the central component of Albertsons' Houston division and is headquartered in the Westchase area of Houston. Initially an independent entity, Randalls was purchased by Safeway in 1999 and subsequently integrated into Albertsons in 2015.

The retailer provides an extensive selection of goods, including bakery items, dairy products, deli offerings, frozen foods, meats, pharmacy services, fresh produce, seafood, snacks, and alcoholic beverages. Numerous locations also feature enhanced services such as fresh seafood counters, floral departments, cosmetics sections, and bakeries. Flagship Randalls stores have broadened their prepared food menus to include freshly made pizzas, pastas, and barbecue dishes. Certain stores additionally offer banking facilities, ATMs, coffee shops, drive-through pharmacies, fuel stations, as well as full-service counters for lottery ticket sales, bill payments, and license renewals.

Previously, Randalls’ distribution operations were based near Cypress, Texas; however, logistics support has since transitioned to Tom Thumb's warehouse in Roanoke within the Dallas–Fort Worth metropolitan area. The company employs roughly 16,000 individuals as of December 2021 and recorded revenues totaling $112 million in 2020. Leadership includes Division President Paul McTavish alongside Vice Presidents Leslie Neslson and Ronnie Brennan.

History

Randalls Food Markets was established on July 4, 1966, in Houston, Texas by Robert Randall Onstead, R. C. Barclay, Norman N. Frewin, and T.A. Morgan through the acquisition of two grocery stores. The business expanded rapidly, opening its fourth location by 1970 and growing to 15 stores by the decade’s end. By 1980, Randalls commanded an 8% share of Houston’s grocery market, ranking fourth locally. By 1985, it had become the second-largest grocer in Greater Houston with a market share of 17%.

In 1989, Boris Yeltsin—then a Soviet political figure—visited a Randalls store in Clear Lake and expressed admiration for the wide product assortment available, underscoring the company’s extensive variety compared to Soviet retail standards at that time.

By 1990, Randalls operated 42 stores and surpassed $1 billion in revenue by 1991, establishing itself as Houston’s fastest-growing company.

Expansion beyond Houston

During the 1990s, Randalls extended its reach into Dallas, Fort Worth, and Austin through key acquisitions. In 1992, it purchased Cullum Companies—which owned 62 Tom Thumb and Simon David stores—doubling its presence to over 115 locations statewide. While Tom Thumb maintained its brand identity with refreshed branding elements, Randalls bolstered its Austin footprint by acquiring 12 AppleTree Markets stores in 1994. Of these acquisitions, nine AppleTree locations plus all seven Tom Thumb outlets were converted to Randalls stores, greatly increasing market penetration in the Texas Hill Country; three AppleTree sites were closed. Simon David stores operated until 1996 before being transformed into Saks Fifth Avenue locations.

In response to customer preferences following the departure of Simon David stores, Randalls introduced its Flagship specialty store concept in Austin in 1998.

After nearly thirty years of operation without selling alcoholic beverages at its primary brand locations, Randalls began offering beer and wine in late 1994; meanwhile, previously acquired Tom Thumb and AppleTree stores had already been selling these products.

Kohlberg Kravis Roberts & Co.

In April 1997, private equity firm Kohlberg Kravis Roberts & Co. acquired a controlling interest in Randalls by investing $225 million, fueling accelerated expansion while divesting or shutting down underperforming outlets. Within twelve months, Randalls launched four new stores throughout Houston and Dallas, simultaneously relocating and closing certain branches to streamline operations.

By February 28, 1999, Randalls managed 45 stores in the Houston metropolitan area, achieving annual revenues of $1.06 billion and capturing a 20.3% share of the market, employing a workforce of 7,876. It ranked as the second-largest grocery retailer in Houston, with continuous store openings and renovations supporting its growth trajectory.

Safeway

In 1999, the Fortune 50 corporation Safeway Inc. purchased the Randalls/Tom Thumb chain, which comprised 116 stores. Safeway maintained the Randalls brand in Houston and Austin while preserving the Tom Thumb and Simon David names in Dallas/Fort Worth. The company replaced numerous regional private-label products with its own brands and rebranded Randalls Food Markets as Randalls Food & Drugs. By 2001, Randalls operated 46 locations in Houston, 12 in Austin, and 69 throughout Dallas/Fort Worth.

In early 2005, Safeway contemplated divesting its Texas division but ultimately opted to close 25 stores across Houston, Austin, and Dallas/Fort Worth to improve operational efficiency. Following these closures, the Randalls/Tom Thumb network consisted of 62 stores in Dallas, 36 in Houston, and 14 in Austin. Safeway introduced the "Lifestyle" store format—highlighting expanded fresh food sections, natural and organic selections, full-service meat and bakery departments, floral shops, sushi bars, and olive bars—to recapture market share amid intense competition. Despite these initiatives, Randalls’ market share in Houston declined to 6.9% by 2006.

By early 2020, the Randalls location in The Woodlands permanently ceased operations after liquidating its inventory. In early 2022, the final Randalls store in Sugar Land also closed; this store had been established during the area's initial growth phase in the 1980s. Other Sugar Land outlets had shuttered during the mid to late 2000s.

Albertsons

In March 2014, Cerberus Capital Management agreed to acquire Safeway—Randalls' parent company—with plans to merge it into its Albertsons chain. Subsequently, the 44 Randalls stores were consolidated with Albertsons' southern Louisiana and Florida branches under a new "Houston" division. Tom Thumb stores were integrated with Albertsons locations in North Texas, ending their prior association with Randalls. A new store was launched in Leander, Texas in November 2016.

In January 2017, the South Katy location serving Cinco Ranch was closed, reducing the Greater Houston division to 29 outlets. By March of that year, the Cypress distribution center was merged into Tom Thumb's Dallas–Fort Worth facility located in Roanoke, which now supplies Albertsons, Tom Thumb, and Randalls stores across Texas, Louisiana, and Arkansas. Additionally, by mid-2017 the Houston office combined operations with Albertsons' Fort Worth office.

On January 12, 2017, a new store debuted in Georgetown, Texas. However, early in 2018 the Oak Forest and Alief locations in Houston were closed and liquidated. The Cypress store followed suit with a closure in June 2018. These moves reflect Albertsons' strategic consolidation efforts aimed at improving operational efficiency and reinforcing its presence within key markets.

Hurricane Relief Fund

In the aftermath of Hurricane Ike, Randalls promptly resumed operations at numerous stores despite widespread shutdowns. The Galveston, Texas store, which suffered significant damage from the storm surge, was among the first in the region to reopen, including its gas station.

To aid communities impacted by the hurricane, Randalls partnered with KHOU Channel 11, 104.1 KRBE, and Jack FM to establish the Hurricane Ike Relief Fund.

Facilities

Prior to 2017, Randalls maintained a distribution center in northwest Houston; however, this facility was closed that year as the company centralized its logistics within the Dallas–Fort Worth area.

Loyalty program

Randalls provides the Remarkable Card loyalty program, which grants discounts on selected items, a 3-cent per gallon fuel savings, or options for charitable contributions from purchases. This card is accepted at all Safeway locations. Cards issued before Safeway’s acquisition remain valid exclusively at Randalls and Tom Thumb stores, while Safeway-branded cards offer similar benefits across these brands.

The former Power Pump Rewards program, which rewarded customers with a 10-cent per gallon gasoline discount after spending $100, was discontinued in September 2009.

External links

Innovative Randalls a remarkable story Houston Business Journal (July 30, 1999) – analysis of Randalls’ acquisition by Safeway
Randalls Food Markets History – FundingUniverse.com
Article on Safeway’s acquisition by Cerberus Capital – Reuters