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HANNAFORD ANNOUNCES INCREASED SALES FOR MAY; COMPLETES SALE OF ITS WELLBY DRUG SUBSIDIARY; DISCUSSES POTENTIAL EARNINGS

HANNAFORD ANNOUNCES INCREASED SALES FOR MAY; COMPLETES SALE OF ITS
 WELLBY DRUG SUBSIDIARY; DISCUSSES POTENTIAL EARNINGS
 SCARBOROUGH, Maine, June 9 /PRNewswire/ -- Hannaford Bros., Co., (NYSE: HRD), northern New England's largest food retailer today announced that sales and other revenues for the four weeks ended May 23, 1992, were $160,847,000, an increase of 3.1 percent over the $156,055,000 reported for May 1991.
 For the 21 weeks ended May 23, 1992, sales and other revenues were up 2.3 percent from $784,290,000 last year to $802,670,000 this year.
 Late in May 1992, the sale of 34 stores in Hannaford's Wellby Super Drug subsidiary to Rite Aid Corporation was completed. The proceeds of this sale, which was previously announced on May 5, 1992, amounted to approximately $30 million. The sale will result in a non-recurring gain, the amount of which has not yet been finally determined. The gain will be reported in the second quarter. Due to ongoing expenses and reduction in earnings in later quarters, the impact on annual earnings will be minimal.
 With respect to our second quarter results, Hugh G. Farrington, president and chief executive officer, said, "Despite the non-recurring gain from our Wellerby sale which we expect will make net earnings look in line with expectations, our earnings from operations may not equal last years 30 cents per share. We are still experiencing sluggish consumer spending in this weak economic environment. There is little or no inflation present and comparable store sales are down slightly from a year ago."
 Farrington added, "Because of this economic situation, which faces us as well as our competitors, we have recently experienced increased competition in the form of lower margins in some of our marketing territory. New competition in the form of wholesale clubs is also present. In light of this situation, we intend to preserve our market share through a tough competitive pricing strategy where necessary and the promotion of our Budget Values program which directly competes with the wholesale club stores. We feel this short-term strategy will position Hannaford well for the longer term. We anticipate that our earnings for the full year 1992 will be up around 10 percent. In addition, our expansion plans continue to be aggressive, as we plan to add over 10 percent to our food store square footage in both 1992 and 1993."
 -0- 6/9/92
 /CONTACT: Charles Crockett of Hannaford Brothers, 207-883-2911/
 (HRD) CO: Hannaford Brothers ST: Maine IN: REA SU:


TM -- NE012 -- 8439 06/09/92 15:23 EDT
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Publication:PR Newswire
Date:Jun 9, 1992
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