SALISBURY, NC – Food Lion, Inc. (Nasdaq: FDLNA, FDLNB) announced today that it plans to increase the Company’s store base by adding 80 new supermarkets during the coming year. Seventy-three of the new stores will operate under the Food Lion banner, while seven new stores in Florida will carry the Kash n’ Karry name. Projected new stores include 14 replacement stores for Food Lion and the replacement of one Kash n’ Karry supermarket. Approximately 20 stores will be closed during the year as part of the Company’s ongoing evaluation of store sites.
Food Lion will continue its aggressive remodeling program by renovating 140 stores during the coming year. Forty-eight Food Lion stores will be expanded and 70 will be renovated, for a total of 118 stores. Kash n’ Karry will expand 12 supermarkets and remodel 10, for a total of 22 Kash n’ Karry stores. Approximately 30 percent of Kash n’ Karry stores will have been upgraded by the end of 1998, and 50 percent are expected to have been renovated by the end of next year.
“Whether it is through new stores or renovations, our growth plans for 1999 are consistent with Food Lion’s strategy to address customers’ needs for convenient locations and a pleasant shopping environment,” explained Food Lion President and Chief Executive Officer Tom Smith. “With an average store age of five years, we are able to offer the freshest, most convenient locations for consumers in our key markets, without losing sight of the Extra Low Prices which our customers expect from our stores.”
The result of planned new stores and expansions will be to increase square footage by approximately 7 percent, or 2.9 million square feet. The Company expects to spend up to $390 million during 1999 for capital expenditures.
“In addition to organic growth, Food Lion will continue to seek out and evaluate opportunities for potential acquisitions, as they become available, in the best interests of our shareholders,” Smith added.
The Company announced 1999 projections for same store sales increases in the 1.5 to 2.0 percent range. Earnings growth should continue the double-digit trend experienced by the Company over the past several years.
With 1997 sales of $10.2 billion, Food Lion is one of the nation’s largest supermarket chains. The Company and its 87,000 employees serve approximately 10 million customers a week at 1,094 Food Lion supermarkets in 11 states and 90 Kash n’ Karry stores in West Central Florida.
Safe Harbor Statement Regarding Forward-looking Information or Statements
This document contains forward-looking statements that involve uncertainties. Factors that could cause results to differ materially from those in the forward-looking statements are detailed from time to time in reports filed by the Company with the SEC, including Forms 8K, 10Q and 10K.
Contact: Chris Ahearn (704) 633-8250, Ext. 2892