SALISBURY, N.C. -- Food Lion here said a combination of low-pricing strategy, the conversion of many stores to 24-hour operations, the success of its MVP customer program and an effort to keep down operating costs propelled the company to its strongest year ever.
r fourth quarter 1995. Sales were $2.77 billion, up 9.4% over the year-ago quarter.
Food Lion closed the year with a net margin of 2.4% for the quarter and 2.3% for the year. Same-store sales were up 5% for the quarter and 5.7% for the year.
In 1996, Food Lion opened 55 new stores and relocated or closed 25 locations. In addition, the company purchased the assets of Food Fair, Winston-Salem, N.C., operating nine of those locations, bringing the total number of Food Lion stores to 1,112 by year-end. Food Lion completed its acquisition of 100-store Kash n' Karry Food Stores, Tampa, Fla., Dec. 18, 1996. Kash n' Karry now operates as a subsidiary of Food Lion with its own operational management team under its own banner.
Food Lion's ongoing renovation efforts -- remodels and/or expansions of 124 stores and addition of deli/bakeries to 155 stores -- increased total square footage by 8.5%.
4TH-QUARTER RESULTS
Qtr Ended 12/28/96 12/30/95
Sales $2.77 billion $2.54 billion
Change + 9.4%
Same-store + 5%
Net Income $66.62 million $54.96 million
Change + 21.2%
Inc/Share 14 cents 12 cents
52 Weeks 1996 1995
Sales $9.01 billion $8.21 billion
Change + 9.7%
Same-store + 5.7%
Net Income $206.07 million $172.36 million
Change + 19.6%
Inc/Share 44 cents 36 cents
