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FOOD LION, INC. ANNOUNCES 1993 SALES RESULTS AND UPDATED 1994 BUSINESS PLAN (4)

 SALISBURY, N.C., Jan. 7 /PRNewswire/ -- Food Lion, Inc. (NASDAQ-NMS: FDLN) announces latest unaudited sales information for the quarter and year, as follows:
 NOTE: Fourth quarter 1992 and fiscal 1992 comprised 17 and 53
 weeks, respectively.
 PERIOD ENDED JANUARY 1, 1994 JANUARY 2, 1993 % INCREASE
 (16 and 52 weeks in 1993 vs. 17 and 53 weeks in 1992):
 Fourth quarter
 (16 weeks) $2,395,695,120 $2,268,067,627 5.6
 Year-to-date
 (52 weeks) $7,609,816,801 $7,195,923,099 5.8
 Number of stores 1,096 1,012
 (16 and 52 weeks in 1993 vs. 1992 restated
 to reflect 16 and 52 weeks):
 Fourth quarter $2,395,695,120 $2,126,901,855 12.6
 Year-to-date $7,609,816,801 $7,062,560,201 7.7
 Same store sales increased 2.9% during the fourth quarter of 1993, the Company's best performance of the year and its third consecutive quarterly improvement in same store sales. For the year, same store sales decreased 2.6%. The Company is pleased to have experienced sequential same store sales improvement throughout 1993 and looks forward to continued sales momentum in 1994.
 Today, Food Lion also announced an updated business plan for 1994. The plan includes 40-50 new store openings, 60-70 major renovations to existing stores and the closing of certain unprofitable store locations. Of the planned store closings, 47 are in the Company's Southwestern market (36 in Texas and 11 in Oklahoma), while 41 stores are located across eight states in the Company's Southeastern market area. Tom Smith, President and Chief Executive Officer said, "This move comes as a result of a company-wide review of store performance designed to focus our resources on our most productive stores."
 After the store closings, the chain will continue to operate more than 1,000 stores in 14 states, employing more than 60,000 people.
 Smith added, "I want to assure the customers of the stores scheduled to close, that from now until the final customer is served, all customers will continue to receive the very best quality, service and prices from their neighborhood store."
 Stores are scheduled to open in Delaware, Florida, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia and West Virginia during 1994.
 Major renovations will be done primarily in the Carolinas, Virginia and Tennessee.
 Stores are slated to close in Florida (18), Georgia (5), Kentucky (2), North Carolina (6), Oklahoma (11), Pennsylvania (1), South Carolina (5), Tennessee (3), Texas (36) and Virginia (1).
 In announcing the decision to close certain stores in Texas and Oklahoma, Smith said, "We are still confident that, based on extensive market and consumer research, the Company's historical sales trends in the stores that will remain open in the Southwest, and our current marketing plans, Food Lion can be successful in many of the markets in the Southwest. Our commitment to the Southwestern markets is evidenced by a continuing strong presence there."
 The decision to close stores comes as part of Food Lion's on-going review of individual store profitability. By closing unprofitable stores, the Company will eliminate operating losses and be able to focus its resources on profitable stores.
 Approximately 1,300 full-time and 2,200 part-time employees will be affected by these store closings during 1994. Most employees of the stores scheduled to close will be offered employment elsewhere in the Company. Where continuing employment is impractical, a severance package will be offered to both full and part-time employees.
 No distribution center or office employees will be displaced as a result of these closings.
 The Company will establish a pre-tax reserve against 1993 earnings of approximately $170.5 million ($103 million after tax) to cover management's best estimate of costs associated with the store closings. These costs include estimated lease obligations and various asset write- offs. This reserve will be identified separately in the Company's 1993 financial statements. These store closings confirm Food Lion's goal of maintaining acceptable profitability levels in all operating areas in an effort to achieve maximum corporate and shareholder value while providing its customers the satisfaction they deserve.
 Management does not believe that this reserve will affect its 1994 dividends and plans to announce its next quarterly dividend on February 10, 1994.
 -0- 1/7/94
 /CONTACT: Mike Mozingo of Food Lion, 704-633-8250 ext. 2306/
 (FDLN)


CO: Food Lion, Inc. ST: North Carolina IN: REA SU: SLS ERP

CM -- CH003 -- 0068 01/07/94 10:10 EST
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Date:Jan 7, 1994
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