SMITH'S TO LEASE FACILITY TO RALPHS

SALT LAKE CITY -- Smith's Food & Drug Centers here said it has reached an agreement to lease its Riverside, Calif., distribution center and dairy facility to Ralphs Grocery Co., Compton, Calif.According to observers, the deal should generate significant savings for both companies. But it could also be another sign that Smith's intends to exit a southern California market that has been problematic

SALT LAKE CITY -- Smith's Food & Drug Centers here said it has reached an agreement to lease its Riverside, Calif., distribution center and dairy facility to Ralphs Grocery Co., Compton, Calif.

According to observers, the deal should generate significant savings for both companies. But it could also be another sign that Smith's intends to exit a southern California market that has been problematic for the chain, observers said.

The terms of the agreement were not disclosed

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