One of the seven names listed in L.A.’s first phone directory, Commerce-based grocery store Smart & Final Stores Inc. celebrates 155 years in business this year.
Starting under the name Hellman-Haas Grocery Co., the grocery store chain has seen considerable growth from a two-story brick building located on Los Angeles Street to 255 locations in California, Nevada and Arizona – and one recently opening in San Diego.
Pedro Silva, senior manager of corporate communications, attributed the grocer’s continual popularity to its open menu of options for both households and businesses.
“We really cater to both of those customer bases. For households, we offer everyday essentials at great value, but for businesses as well,” Silva said. “We have a connection to small restaurants, food trucks, after school programs where we provide that warehouse shopping experience in a smaller, more convenient format. And I think customers have really come to appreciate that over time.”
Beyond the wide customer base, the grocer also offers a no-membership option, which Silva said is a “big differentiator” for Smart & Final, particularly distinct from competitors like Costco Wholesale Corp. and Sam’s Club under Walmart Inc.
The history
Founded in 1871 by Herman Hellman, Jacob Haas and Bernard Cohn, the grocer started off by selling basic food ingredients, sheepherding supplies, gunpowder and chewing tobacco, which were considered essentials at the time. Packaged goods were unknown then, so the company sold products in bulk.
The grocer was the first to use the cash-and-carry model west of Chicago, Silva noted. Customers picked their own products instead of having an associate gather for them, which saved time. It was also one of the first grocers to carry its own label, introducing a line of canned tomatoes called “Iris” in 1889.
Sales have reached $2 million in less than a decade since the launch.
“When you’re talking about the modern-day grocery experience, Smart & Final had a big hand in shaping that,” Silva said.
The grocer also found itself deep in the folds within the cultural landscape of the city, with celebrities such as television icon Lucille Ball frequenting its shops. A signed check from Ball is still on display in the company’s Commerce headquarters.
Other fans include social media influencer Alex Earle and celebrity chef Roy Choi, whose popular Kogi sauce was sold first by Smart & Final.
After crossing the 150-year threshold in 2021, Smart & Final’s private equity parent Apollo Global Management announced that it would sell the grocer to Bodega Latina Corp., under Mexican retailer Grupo Comercial Chedraui at $620 million, including its debt.
As of 2021, the private grocer’s U.S. revenue totaled $4.1 billion. It had opened 16 locations in northwestern Mexico by 2021. Despite its international expansion, Smart & Final still highlighted its L.A. heritage, focusing on being both a “good business” and a “good neighbor,” said Silva.
“Our focus on the city has not changed, right? We’ve seen L.A. grow up, if you will,” Silva added. “We’re proud to still be an L.A. born-and-bred business.”
