GIANT FOOD, INC., REPORTS EARNINGS
GIANT FOOD, INC., REPORTS EARNINGS WASHINGTON, Nov. 19 /PRNewswire/ -- Giant Food, Inc., a
Washington-based food-drug chain of 154 units, today announced unaudited sales and earnings for the 12-week and 36-week period ended Nov. 2, 1991, compared with the same period ended Nov. 3, 1990.
For the 12 weeks ended Nov. 2, 1991: -- Sales were $773,843,000, compared with $757,589,000, an increase of 2.15 percent. -- Net income was $14,201,000, 1.84 percent of sales, compared with $24,901,000, 3.29 percent of sales. -- Earnings per share were 24 cents, compared with earnings of 42 cents, a decline of 43 percent. For the 36 weeks ended Nov. 2, 1991: -- Sales were $2,338,111,000, compared with $2,290,852,000, an increase of 2.06 percent. -- Net income was $62,521,000, 2.67 percent of sales, compared with $79,166,000, 3.46 percent of sales. -- Earnings per share were $1.05 compared with earnings of $1.33, a decline of 21 percent. The recession continues to strongly impact the economy of the Washington and Baltimore area. Giant sales show growth in the 2 percent range, and in light of overall weak consumer demand and deflation in some food and drug prices, the company views these increases positively. Giant has been very aggressive in protecting and building volume, reducing everyday prices on health and beauty aids, expanding its Super Deals program, and instituting Double Coupons. And while these programs are contributing to volume, gross margins are lower than the prior year, leading to a decline in earnings and earnings per share. Giant continues to demonstrate that its merchandising programs and service place it in the forefront competitively, with customer transaction volume showing continued increases. Until the region begins to show overall economic recovery, however, it will be difficult to achieve historical increases in sales and earnings. Giant's 12-week earnings rate of 1.84 percent still places it well above supermarket industry averages. Of this, approximately 1 percent comes from the company's non-store operations. Giant continues to move ahead with its program of new store construction. On Oct. 30, 1991, a 56,000-square-foot food-drug store opened in the Fox Run Shopping Center, Prince Frederick, Md., Giant's first store in Calvert County. Construction continues on a 62,000- square-foot food-drug store in Chantilly, Va., and a 58,000-square- foot food-drug store in the village of Hickory Ridge, Columbia, Md. Work is scheduled to begin early in 1992 on two new food-drug stores in Prince George's County, Md.: a 49,000-square-foot store in Lanham, Md.; a 61,000-square-foot store in Upper Marlboro, Md. The Chantilly and Lanham stores are replacements for food only units. On Dec. 4, Giant will open its first deep-discount "super" drugstore in Salisbury, Md. The 28,500-square-foot unit, named "Super G Deep Discount Drug Store" is located across the street from an existing Giant supermarket. The company plans to expand this concept where locations justify and will move rapidly after the test and refinement period. The company has also purchased several shopping centers in which it has operating stores. In September, the 39-acre Flagship Center in Rockville, Md., with 353,000 square feet of retail space, was acquired, and in November, the Friendship Shopping Center, with 100,000 square feet of retail space, straddling Newark Street along Wisconsin Avenue, N.W., in Washington, was purchased. These acquisitions are prime retail locations which will be managed by the company's GFS Realty subsidiary. Earlier this fiscal year, Giant purchased the McLean Shopping Center with 115,000 square feet of retail space, as well as 30 acres for future retail development in Manassas, Va. The company now owns 14 shopping centers and three free-standing food-drug stores. Giant's Apples for the Students Plus began its third year of educational assistance on Sept. 15 with an expanded program. The company anticipates that with manufacturer participation in this year's program, schools will receive increased benefit while the cost to Giant will be reduced. Giant operates 154 supermarkets, of which 105 are food-drug combination stores compared with 151 supermarkets and 100 food-drug stores a year ago. Two free-standing drug stores were in operation each year. -0- 11/19/91 /CONTACT: David B. Sykes of Giant Food, Inc., 301-341-8480/ CO: Giant Food, Inc. ST: District of Columbia IN: FOD SU: ERN SB-MH -- DC027 -- 5154 11/19/91 17:36 EST
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|Date:||Nov 19, 1991|
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