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Fry's Food and Drug

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An American supermarket and food-and-drug retail chain with a major presence in Arizona, operated as a division of Kroger.

Last updated August 22, 2026

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Overview

Fry's Food and Drug is an American supermarket chain whose principal market is Arizona. The business combines conventional grocery retail with pharmacy services and, through selected formats, general merchandise, fuel, prepared foods, specialty departments, and other convenience-oriented services. Its stores operate under the Fry's banner and, in larger locations, the Fry's Marketplace name. The company is a division of The Kroger Co., one of the largest supermarket operators in the United States. The chain began in 1954 when Donald Fry opened a grocery business in El Sobrante, California. With assistance from his brother Charles, Fry's expanded into the Phoenix market in 1960. Arizona subsequently became the company's defining market and the center of its long-term retail identity. In 1972, the chain was sold to Dillons, a Kansas-based grocery company. Dillons later became part of Kroger through a 1983 merger, placing Fry's within the broader Kroger corporate structure. Fry's developed beyond the conventional supermarket model through combination-store formats. Fry's Marketplace stores combine a full grocery operation with pharmacy and a larger general-merchandise assortment. Typical departments can include home goods, electronics, toys, outdoor-living products, seasonal merchandise, and other nonfood categories. The format was influenced by the multidepartment retail model associated with Fred Meyer, another Kroger company. Marketplace stores are generally smaller than the largest Fred Meyer locations but are designed to provide a broad one-stop shopping proposition. The Fry's brand also became central to Kroger's Arizona integration after the 1998 announcement and 1999 approval of the Fred Meyer–Kroger merger. Because the merger produced overlap among banners in Arizona, Kroger chose to consolidate much of its Arizona presence under Fry's. Many Smith's Food & Drug Centers in the state were rebranded as Fry's stores, while some locations near markets where Smith's remained the established banner retained the Smith's name. Fry's distribution and administrative operations were subsequently moved into the former Smith's facilities in Tolleson, west of Phoenix. The company has experimented with differentiated store concepts. Fry's Signature locations emphasize a more upscale and neighborhood-oriented grocery experience, with expanded selections and departments such as kosher foods, wine, kitchenware, soup and salad bars, and olive bars. Fry's Mercado was designed around the needs of Arizona's large Hispanic and Latino customer base and included features such as an agua fresca bar, a cocina, check-cashing services, fuel, and independently operated or sublet businesses. Fry's Fuel stations extend the chain's convenience proposition at selected stores. Today, Fry's remains an active Kroger division and a prominent Arizona grocery brand. Its positioning rests on combining everyday supermarket shopping with pharmacy access, digital and loyalty-oriented retail services, fuel at selected locations, private-label and national-brand groceries, and larger-format general merchandise. Although the brand's origins were in California and its corporate history is connected to several Kroger divisions, its public identity and store network are strongly associated with Arizona. Fry's Food and Drug is unrelated to Fry's Electronics, which was founded later by members of the Fry family using proceeds associated with the grocery-chain sale.

History

Fry's Food and Drug traces its origins to 1954, when Donald Fry established a grocery business in El Sobrante, California. His brother Charles helped the business expand, and the chain entered the Phoenix market in 1960. This move was strategically important: Arizona eventually became the market most closely identified with Fry's and the foundation of its modern store network. In 1972, Fry's was sold to Dillons, a grocery company headquartered in Hutchinson, Kansas. Dillons later merged with Kroger in 1983, bringing Fry's into Kroger's expanding portfolio of regional supermarket banners. The grocery chain remained distinct from Fry's Electronics, which members of the Fry family founded in 1985; the electronics retailer was a separate business and was not affiliated with the supermarket chain. A significant organizational change followed Kroger's 1998 agreement to merge with Fred Meyer. The transaction received Federal Trade Commission approval in May 1999. In Arizona, the merger created overlap among Kroger-related banners, particularly Fry's and Smith's. Kroger elected to use Fry's as the principal brand in the Arizona market and converted many Smith's Food & Drug Centers to Fry's. Smith's locations in Kingman, Bullhead City, and Lake Havasu City remained under the Smith's name, reflecting their proximity to the Nevada market and Smith's established presence there. The merger also changed Fry's operating infrastructure. The company's Phoenix distribution center and administrative offices were moved to the newer Smith's distribution and office complex in Tolleson, a western Phoenix suburb. Tolleson became the operational headquarters associated with the Fry's division. Fry's broadened its format strategy through Fry's Marketplace. The concept combined a supermarket, pharmacy, and general-merchandise operation, offering categories such as home products, toys, electronics, outdoor-living merchandise, and seasonal goods. The format was related to the multidepartment model developed by Fred Meyer, but Fry's Marketplace stores were generally smaller than full-size Fred Meyer stores. In Arizona, the concept had roots in Smitty's, a multidepartment retailer that had operated combination stores with grocery, general merchandise, food-court, and other services. Smitty's merged with Smith's Food and Drug Centers in 1996. After subsequent corporate changes, the stores passed through Smitty's Marketplace and Fred Meyer Marketplace branding before becoming Fry's Marketplace. In June 2000, Kroger transferred management of Arizona's Fred Meyer stores to Fry's Food and Drug, and those stores were rebranded as Fry's Marketplace. A planned full-size Fred Meyer store in Phoenix was completed but never opened because its scale did not fit Fry's Arizona strategy; the building was later demolished and the site was redeveloped for Walmart. Fred Meyer's broader Arizona expansion plans were abandoned. Fry's also developed specialized formats. Fry's Signature stores were designed as more upscale neighborhood grocery stores, with broader or more curated selections in categories such as kosher foods, wine, kitchenware, and prepared-food bars. Fry's Mercado was created for the Hispanic market in Arizona and incorporated culturally targeted food and service elements, including an agua fresca bar and cocina, together with check-cashing, fuel, and sublet retail services. Fry's Fuel stations were added at selected supermarket sites. The modern Fry's business operates as a Kroger division and remains primarily associated with Arizona. Its history reflects the consolidation of American regional grocery chains, the migration from conventional supermarkets toward combination stores, and the use of differentiated formats to serve distinct customer segments. The brand continues to combine food retail, pharmacy, general merchandise, specialty grocery, and selected convenience services under a locally recognized regional banner.

  • 2000

    Arizona Fred Meyer stores become Fry's Marketplace

    [1]

    Kroger transfers management of its Arizona Fred Meyer stores to Fry's and rebrands them as Fry's Marketplace.

  • 1999

    Fred Meyer–Kroger merger receives approval

    [1]

    The Federal Trade Commission approves the merger of Fred Meyer and Kroger, setting up banner consolidation in Arizona.

  • 1996

    Smitty's merges with Smith's

    [1]

    Smitty's, an Arizona multidepartment retailer connected to the later Marketplace format, merges with Smith's Food and Drug Centers.

  • 1983

    Dillons becomes part of Kroger

    [1]

    Dillons merges with Kroger, placing Fry's within the Kroger family of regional supermarket divisions.

  • 1972

    Sale to Dillons

    [1]

    Fry's is sold to Dillons, a grocery company based in Hutchinson, Kansas.

  • 1960

    Expansion into Phoenix

    [1]

    Fry's enters the Phoenix market, beginning the expansion that would make Arizona its principal operating territory.

  • 1954

    Fry's is founded in California

    [1]

    Donald Fry establishes the grocery chain in El Sobrante, California, with assistance from his brother Charles.

Products and positioning

A regional supermarket brand offering one-stop shopping across groceries, pharmacy, selected general merchandise, prepared foods, specialty departments, and fuel. Its core market position is mainstream and convenience-oriented, with Signature locations providing a more upscale grocery experience and Mercado locations tailoring the offer to Hispanic and Latino shoppers.

  • Supermarket · 1954

    Fry's supermarkets

    The core Fry's store format provides conventional grocery shopping across fresh foods, packaged groceries, dairy, frozen foods, bakery, deli, household products, personal care, and pharmacy services. Depending on location, stores may also include prepared-food counters, specialty grocery departments, loyalty and digital shopping services, and fuel. The format is designed for frequent household shopping and emphasizes breadth, convenience, and integration of food and health-related services.

  • Combination supermarket and general-merchandise store · 2000

    Fry's Marketplace

    Fry's Marketplace is a larger multidepartment format combining a full-service grocery store and pharmacy with general merchandise. Departments may include outdoor-living goods, electronics, home products, toys, seasonal merchandise, and other nonfood categories. The concept developed from the Fred Meyer and Smitty's multidepartment models and is intended to offer a broader one-stop shopping trip than a conventional supermarket.

  • Upscale supermarket format

    Fry's Signature

    Fry's Signature is a more upscale, neighborhood-oriented grocery format. Its larger or more specialized assortment can include expanded kosher and wine selections, kitchenware, and service or self-service food bars such as soup, salad, and olive offerings. The format is intended to differentiate selected stores through a more curated shopping environment and broader specialty-grocery proposition.

  • Culturally targeted supermarket

    Fry's Mercado

    Fry's Mercado is a format tailored to Arizona's Hispanic and Latino customer base. The Phoenix location has included culturally relevant food and service features such as an agua fresca bar and cocina, alongside check-cashing, a gas station, and additional sublet businesses. It represents an attempt to combine supermarket shopping with services and food experiences designed for a specific local market.

  • Retail fuel station

    Fry's Fuel

    Fry's Fuel stations operate at selected Fry's retail locations and extend the supermarket's convenience offering. The stations allow customers to combine grocery shopping with vehicle refueling, supporting the chain's broader one-stop retail proposition.

Brand decisions

  • 2000

    Transfer of Arizona Fred Meyer stores to Fry's managementStrategy

    Background

    Kroger had inherited Fred Meyer operations and a multidepartment-store concept in Arizona, but the company chose to operate the state's stores through the Fry's division.

    Action taken

    Kroger transferred management of the Arizona Fred Meyer stores to Fry's Food and Drug and renamed them Fry's Marketplace.

    Aftermath

    The move unified the multidepartment format with the established Fry's banner. A planned full-size Fred Meyer store in Phoenix never opened and was later demolished.

  • 1999

    Consolidation of Arizona supermarket banners under Fry'sStrategy

    Background

    The Fred Meyer–Kroger merger created overlap among Kroger-related grocery banners in Arizona, including Fry's and Smith's.

    Action taken

    Kroger selected Fry's as its principal Arizona banner and rebranded many Smith's Food & Drug Centers in the state as Fry's stores, while retaining Smith's at several locations near the Nevada market.

    Aftermath

    The decision strengthened Fry's identity as Kroger's main Arizona supermarket brand and consolidated local administrative and distribution operations in Tolleson.

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