[9] To help raise cash for the deal, American Stores sold its Rea and Derick, Inc. subsidiary of 134 drugstores in December 1984 to People's Drug, a division of Imasco Limited.

The acquisition of the Jewel Companies, Inc. consisted of the Illinois-based Jewel Food Stores supermarket chain and Osco Drug, Inc., Massachusetts-based Star Market, California-based Sav-on Drugs, Montana-based Buttrey Food Stores, and White Hen.

[14][15] Buttrey Food & Drug and Star Market were put up for sale in order to raise capital and pay down debt.

Although the company continued to operate these subsidiaries, investment in remodeling and new construction for these stores and for Acme Markets was minimal throughout the 1980s.

Following the acquisition of Jewel, American Stores used the Osco Drugs name in its effort to build a nationwide network of pharmacies.

In February 1985, it was announced that the Skaggs Drug Center stores located in the Northwest would be rebranded under the Osco name.

[18] Rumors at the time claimed the reason was that 'Osco' has the same pronunciation as the Spanish word 'asco' (oss-ko), which means disgust or loathing, a considerable factor within southern California’s heavily Hispanic market.

[20][21] American Stores’ Alpha Beta chain in California was struggling, plagued by high prices and a reputation for poor service.

[22] Within a month, American Stores proposed to up its bid if Lucky would agree to a friendly takeover.

In August 1988, California Attorney General John Van de Kamp asked the Federal Trade Commission to void the sale, claiming that a Lucky-Alpha Beta juggernaut would cost California consumers $400 million (~$889 million in 2023) by reducing competition.

[25] The Federal Trade Commission approved the merger and Van de Kamp then initiated a lawsuit against American Stores to stop it.

[27] At the same time, the FTC ordered the companies to divest 37 Alpha Beta and Lucky stores to appease antitrust concerns.

[28][29] American Stores appealed, and in April 1989, a Ninth Circuit panel in San Francisco overturned the injunction.

[30] Meanwhile, American Stores continued to plan its integration of Lucky while it waited for the district court to lift the injunction as ordered by the Ninth Circuit.

The deal put no restrictions on American Stores' future growth in California and did not require state approval of the buyer or terms of the sale.

[35] American Stores relocated its corporate headquarters from Salt Lake City to Irvine, California, in July 1988.

[42] In the early 1990s, reducing the $3.4 billion in debt load became the prime challenge for the company; doing so was mainly accomplished through asset sales.

In November 1990, 44 Buttrey Food & Drug stores located in Montana, Wyoming, Washington, Idaho, and North Dakota by a management-led $184 million leveraged buyout.

[45][46] In January 1992, 74 newly re-branded and remodeled Texas, Oklahoma, Florida, and Arkansas Jewel-Osco combination stores were sold to Albertsons for $455 million.

[50] The chain was fifth in market share in the Greater Boston area and has 33 food stores in Massachusetts and Rhode Island at the time.

[56][57] As part of this transition, the company also began to centralize company-wide its procurement, warehousing, inventory control, distribution, marketing, payroll, and human resources operations.

[56][57] From 1992 up through 1998, American Stores consolidated operations and moved major responsibilities of its subsidiaries to its new headquarters in Salt Lake City, Utah.

In 1997, the company opened Kap's Kitchen and Pantry in Salt Lake City, Utah, a prototype for entry into the high end food retail market with selections of natural and organic products, produce, seafood, grocery, meat and poultry, bakery and prepared foods.

[63] In June 1996, Skaggs made it known to the SEC and he would be looking into selling his stock in the company, leading to speculation about a possible breakup or sale of American Stores.

[64][46] It was uncertain if Skaggs’ intention was to launch a proxy fight for control of American Stores or to alter its current management or direction.

In June 1999, the acquisition was complete, ASC was de-listed on the New York Stock Exchange and American Stores ceased to exist.

The functions which supported the food divisions were consolidated and moved from Salt Lake City to Albertsons' headquarters in Boise.