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SMITH'S LAUNCHES NEW UTAH CAMPAIGN LOWERING PRICES ON 10,000 ITEMS

 SALT LAKE CITY, July 21 /PRNewswire/ -- Smith's Food & Drug Centers (NYSE: SFD) announces an aggressive, comprehensive sales program in Utah, reinforcing the company's Every Day Low Price program. Smith's has reduced more than 10,000 prices on grocery, meat and produce to levels at or below the so-called "box-it-yourself" discount grocery outlets.
 The new Utah pricing program follows a year-long commitment to cutting costs, streamlining business expenses and in-store operations, resulting in a company-wide savings to Smith's of more than $28 million dollars -- a savings directly applied to price reductions.
 The new campaign is launched with the statement: "Never again will any supermarket in Utah have lower overall prices than Smith's in grocery, meat and produce." The statement is signed by Smith's Food & Drug Chairman Jeff Smith.
 "This program is a long-term commitment for us," says Smith. "We are signing a contract with our customers, promising the lowest overall prices in the marketplace. We are able to back up this promise due to our comprehensive cost-cutting efforts over the last year."
 For the past year, Smith's has aggressively cut operating costs in all facets of the operation -- ranging from the elimination of executive company cars to using more energy-efficient lighting in stores. In total, the annualized savings company-wide are estimated at $28 million. The applied savings in meat, produce and grocery prices represent savings to items most commonly purchased by consumers.
 "We wanted to apply the savings to offer significant price reductions on items our customers buy most frequently," said Smith.
 "We anticipate an immediate reaction from our Utah competitors," according to Ken Findley, vice president/Sales and Merchandising for Smith's Intermountain Region. "We are prepared for a strong response, and have factored this into our projections. We know they will counter us with hot ad specials, but they can't match our commitment with a year of cost-cutting to back up our reduced prices. Very simply, we have more staying power."
 The program is launched with the most aggressive advertising campaign in Smith's recent history, utilizing television, radio, outdoor, newspaper and direct mail. The messages feature Smith's employees explaining the cost-cutting measures which fuel the campaign.
 -0- 7/21/93
 /CONTACT: Robert D. Bolinder or Matthew G. Tezak, both of Smith's Food & Drug Centers, 801-974-1400/
 (SFD)


CO: Smith's Food & Drug Centers Inc. ST: Utah IN: REA SU:

JB-JL -- LA009 -- 3709 07/21/93 07:33 EDT
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Date:Jul 21, 1993
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