FREEHOLD, N.J. -- Foodarama Supermarkets here told shareholders it plans to accelerate expansion over the next two years.
igned leases for one new store and four replacement units, with plans being completed to expand an existing store.
He also said the company plans to supplement its advertising efforts using information obtained through point-of-sale systems to develop target marketing programs for specific customer groups.
Saker said Foodarama opened two new stores last year -- one in East Windsor, N.J., in February, which replaced an older, smaller unit in Hightstown, N.J., and another in Bound Brook, N.J., in August.
Foodarama also completed a 13,000-square-foot expansion of a store in West Long Branch, N.J., and intends to remodel the older portion of the store in the spring, he said.
The company released financial results at the meeting for the first quarter ended Jan. 30, which showed sales benefiting from a significant increase in promotional activities, Saker said. Those activities, including a variety of incentive programs and double couponing, helped boost sales 19.6% to $203.6 million and comparable-store sales 8%.
He said net income rose 67.3% to $1.8 million, and operating cash flow rose 14.4% to $5.0 million.
Saker said the company and its wholesaler, Wakefern Food Corp., Elizabeth, N.J., have been addressing Y2K issues in computer applications and store systems, "and all computer-based systems and applications which may not be year-2000 compliant have been identified.
"Those systems and equipment which are not year-2000 compliant have been, or will be, modified, reprogrammed or replaced," Saker said. "At this time the company does not anticipate any material costs or adverse consequences relative to these issues.
He said Foodarama anticipates all critical systems and applications will be Y2K compliant during the fourth quarter of the year.
