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HOMELAND CITES ACQUISITIONS FOR VOLUME HIKE

OKLAHOMA CITY -- Homeland Holdings Corp. here said store acquisitions helped boost sales for the first quarter ended March 25, while same-store sales were adversely affected by competitive openings.ating cash flow jumped 6.1% to $5.5 million.David B. Clark, president and chief executive officer, said the company's double-digit sales growth was driven by the completion of three acquisitions, which

OKLAHOMA CITY -- Homeland Holdings Corp. here said store acquisitions helped boost sales for the first quarter ended March 25, while same-store sales were adversely affected by competitive openings.

ating cash flow jumped 6.1% to $5.5 million.

David B. Clark, president and chief executive officer, said the company's double-digit sales growth was driven by the completion of three acquisitions, which boosted Homeland's store base to 83 at the end of the quarter, up from 69 a year earlier.

He said the drop in same-store sales was due to several competitive store openings; slower post-Y2K sales early in the quarter; relatively mild winter weather; and a difficult comparison with a strong revenue performance a year ago.

Clark said the company anticipates increasing sales by nearly 20% to $660 million this year, compared with $560 million in 1999. However, the pace of competitive openings is likely to result in a same-store sales decline of approximately 1% for the second quarter, he said.

"We continue to believe Homeland is well positioned to strengthen its presence in its core markets through additional acquisition activity, and we intend to pursue opportunities that meet our criteria," Clark said.

"We also believe we can lessen the impact of competitive openings through intensive efforts in each store [facing a competitive opening], including store-team training focused on improving customer service, weekly in-store merchandising events, direct-mail campaigns, community events and increased media advertising."

Homeland said since the end of the quarter it has completed its previously disclosed purchase of four Baker's Supermarkets from Fleming Cos. here. Three of the stores are located here and a fourth is under construction in Lawton, Okla.