In the 1890s, John S. Dillon opened a general store in Sterling, Kansas, and learned that allowing customers to charge then pay later and delivering groceries to their homes was a financial and manpower strain on his business. In 1913, he opened his "J.S. Dillon Cash Store" in Hutchinson, Kansas employed a new marketing concept called cash and carry, where the store would not offer credit or delivery services. Dillon opened a second store in 1915 that he managed then placed his son, Ray E. Dillon, in charge of the original store. In 1917, the company was incorporated under the name "Dillon Mercantile Company, Inc". Due to his sons John and Ray both being overseas in France during World War I, Dillon sold his company to his investment partners, but soon afterward both sons returned. They opened a new store called "J.S. Dillon and Sons Store" in 1919 and incorporated in 1921. After several decades of steadily building the chain, a burst of growth began in 1957, when John's son, Raymond, expanded with additional stores in the Wichita market when, in September 1957, Kroger sold off its Wichita, Kansas, store division, then consisting of 16 stores. By 1968, J.S. Dillon and Sons had grown into Dillon Companies, Inc., and began acquiring regional banners, such as City Market, Fry's, Gerbes, and King Soopers, over 300 convenience stores in five states, and Jackson's Ice Cream dairy. Dillon Companies, Inc., joined the Kroger company in 1983 and brought with it two future CEOs: Joe Pichler, who served as CEO of Kroger from 1990 to 2003, and Kroger's former CEO, Dave Dillon. Dave is the great grandson of J. S. Dillon. Today, more than 12,000 employees work at 93 stores in the Dillon Stores Division, which includes 26 stores in Wichita, Kansas, area; 11 stores in the Omaha, Nebraska, area; nine stores in Topeka, Kansas; and 24 fuel centers. The format for most locations is the traditional combination of food, general merchandise, and pharmacy, with an average of 49,000 square feet per store. The division offers Dillons Marketplace stores in Kansas, located in Wichita, Andover, Derby, and Hutchinson. In 1983, Dillon Companies, Inc., was acquired by The Kroger Company of Cincinnati, Ohio, creating a nationwide grocery chain. Several years later, David Dillon was named Kroger's President and COO and became CEO in 2003. Dillon retired from that position effective January 1, 2014. In 2006, Kroger opened the first Dillons Marketplace in Wichita, Kansas. The concept, similar to Kroger's Fred Meyer chain, is of grocery and general merchandise. In 2013, Dillons opened its fifth Marketplace in its hometown of Hutchinson, at corner of 30th and Waldron Avenue; it is the largest store in the company.
Gerbes
Frank J. Gerbes founded Gerbes Super Markets, Inc. in Tipton, Missouri in 1933. In the following years, he would build multiple buildings which housed its stores and offices. In 1959, a profit sharing and pension trust plan was introduced to all employees by Mr. and Mrs. Gerbes, which was the first in central Missouri. In 1966, Gerbes merged with the Dillon Companies, and has been a division ever since. Gerbes currently has six stores in central Missouri, in the Columbia and Jefferson City area.
