WANTED: NEW BANK TO KEEP BRANCHES OPEN IN KROGERS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 23, 1993                   TAG: 9303230183
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium
WANTED: NEW BANK TO KEEP BRANCHES OPEN IN KROGERS
The Kroger Co. said Monday it is searching for another bank to operate the "money markets" in several of its supermarkets.
Dominion Bank says its new owner, First Union Corp., has decided to close the Kroger branches at the end of June.
"Customers do like them," said Joann Boone, spokeswoman for Kroger in Roanoke.
Kroger has "heard a lot from different customers," all of whom support keeping a bank in the store, since Dominion announced the closing Wednesday, she said. She said Kroger would like to maintain full-service branches in its larger stores as a customer convenience.
The supermarket chain is actively seeking another bank interested in taking over the space in June, Boone said. Kroger is talking to other banks about operating full-service branches, with deposit, loan and other services.
But Dominion Bank spokeswoman Brenda McDaniel said the money markets "did not turn out to be as successful as anticipated."
Customers use them primarily to cash checks and to access automated teller machines, she said. Thus, although the money markets have lines and appear busy, she said, they are unprofitable.
That type of check-cashing activity could not support the financial overhead of a full-service branch, she said and Dominion "did not get a loan and deposit mix to get the desired profitability."
McDaniel said no decision has been made about the possibility of leaving the teller machines in place after closing the Kroger branches. She said that would depend on negotiations with Kroger, because it owns the space.
Boone said Dominion notified Kroger about the closing, giving a date of mid- to late June. The money markets slated for closing are at Lakeside, Tanglewood and Cave Spring shopping centers and in Vinton and Blacksburg.

by Archana Subramaniam by CNB