Dan's Foods Inc. will close its supermarket at 2332 E. 2100 South on Saturday, 16 years after it opened the store in a site formerly occupied by Smith's Foods. A new and larger Dan's will open next month in the Olympus Hills Shopping Center.

Ted Gardner, vice president of Dan's, said all of the 120 employees at the 21st South store will be relocated to the Olympus Hills store or other stores in the Dan's chain. "There will be no layoffs," he said.Gardner said the 21st South Dan's began losing customers to the new and larger Dan's that opened last year in Foothill Village. "We stuck it out as long as we could," at 21st South, he said. "Long enough to know it was no longer a viable location for us."

The new Olympus store will be 55,000 square feet, nearly double the size of the 21st South store. The new store will be the sixth in the Dan's chain. In recent years, Dan's has closed three stores and opened three larger stores.

"The stores we closed were older and outdated," said Gardner. "Our square footage has increased dramatically in keeping with the current trends in markets."

Dan's is sending 21st South customers a letter announcing the closure and a book of merchandise coupons, valued at $30, redeemable at Dan's stores in Foothill Village and 2330 E. 3300 South.