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Skaggs United Stores

The Skaggs Companies, Inc.
Industry Retail
Successor American Stores
Founded 1915
Defunct 1979
Area served
United States
Products Food, Prescriptions, Liquor
Subsidiaries Skaggs Drug Centers
Payless Drugs
Osco Drug

Skaggs Companies was the predecessor to many famous United States retailing chains, including Safeway, Albertsons, Osco Drug, and Longs Drugs. The company owned several drugstore chains, but all of them were sold. Skaggs Cos. became American Stores in 1979.

The first company was based in American Falls, Idaho, where in 1915 Samuel M. Skaggs founded a grocery store and operated it as Skaggs' Cash Store, which was sold to his son Marion Barton Skaggs. It took the name "Cash Store" as it operated on only a cash basis. With the assistance of his five brothers: Pepper Oscar Skaggs, Aron Sylvester Skaggs, Loronzo L. Skaggs, Samuel Olnie Skaggs, Levi Justin Skaggs, Marion Skaggs grew the chain, operated as two separate businesses, Skaggs Cash Stores (Pepper Oscar Skaggs) and Skaggs United Stores (M. B. Skaggs), to 191 stores by 1920, and by 1926 it had grown to 673 stores, when it merged with Sam Seelig Company (in a deal orchestrated by Charles Merrill of Merrill Lynch to form Safeway). Safeway later acquired Pay and Take It Stores from Loronzo L. Skaggs in 1928. Safeway is considered the main successor to Skaggs, and despite the Skaggs Companies later being bought by Albertsons, Safeway was also acquired by Albertsons, thus bringing the Skaggs history full-circle.

In 1932 L.J. Skaggs opened Payless Drug Stores in Tacoma, Washington, which soon expanded across the western United States. Some stores were sold to his brother Samuel "L.S." Olnie Skaggs (then an executive at Safeway) along with some colleagues. L.J. Skaggs retained California Pay Less Stores, which became part of Thrifty PayLess, and which are now owned by Rite Aid. The remaining Pay-Less stores were renamed Skaggs Drug Stores in 1948, Skaggs Drug Centers in 1965. In 1969 Albertsons supermarkets and Skaggs Drugs partnered to create combination food and drug stores, a partnership that dissolved in 1977, with assets divided.


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