Delhaize America To Add 85 Stores In Year 2000
Sep 10, 1999
New York, NY/Salisbury, NC—Delhaize America, Inc. (NYSE: DZA, DZB), the
new parent company of Food Lion, Kash n' Karry and Save n' Pack supermarkets,
announced today at a meeting of securities analysts in New York that it plans
to increase the Company's store base by 85 new supermarkets during the coming
year, and will remodel or expand an additional 150 stores. This internal growth
plan is independent of the recently announced acquisition of Hannaford Bros.
on August 18.
The result of planned new stores and expansions will be to increase square
footage by approximately 8 percent, or 3.3 million square feet. The Company
expects that it will dedicate approximately $390 million during the year 2000
for capital expenditures.
Of the new stores, 75 will operate under the Food Lion banner, while 10 new
stores in Florida will carry the Kash n' Karry name, reflecting an acceleration
of the growth plans for Kash n' Karry in Florida. Projected new stores include
15 replacement stores for Food Lion and the replacement of three Kash n' Karry
supermarkets.
Delhaize America's aggressive remodeling program will include the renovating
of 108 Food Lion stores and the expansion of 31, for a total of 139 stores.
Kash n' Karry will expand nine supermarkets and remodel two, for a total of
11 Kash n' Karry stores. Bill McCanless, Chief Executive Officer of Delhaize
America, said, "Delhaize America is well positioned for continued growth,
both internally and through its recently announced acquisition of Hannaford
Bros., one of the premier supermarket chains in the northeast. With the creation
of the Delhaize America holding company structure just this week, we have enhanced
the ability of each of our chains to develop individually.
"Food Lion will continue to fill in stores in markets where it already
has established a major presence, and to grow contiguously to those markets,
in order to continue to address its customers' needs for convenient locations
and a pleasant shopping environment. Kash n' Karry, whose larger store format
features a greater selection of products and services in order to respond to
its targeted customers' lifestyles, will build upon its position as one of the
most recognized chains in central Florida. We are excited about our plans to
build a strong presence in the booming Orlando area.
With 1998 sales of $10.2 billion, Delhaize America is one of the nation's largest
supermarket chains. The Company and its more than 92,000 employees serve more
than 10 million customers a week at 1,120 Food Lion and 143 Kash n' Karry and
Save 'n Pack supermarkets. With the addition of Hannaford Bros., which entered
into an agreement to be acquired by Delhaize America on August 18, 1999, Delhaize
America will have over 1,400 stores throughout the eastern United States from
Maine to Florida, with total projected annual revenue for 2000 of approximately
$15 billion and more than 116,000 full-time and part-time employees.