SCARBOROUGH, Maine -- James L. Moody Jr. ended a 38-year career at Hannaford Bros. last week when he retired as chairman of the board during the company's annual meeting here.
ittee since 1981.
Salmon is the Stanley Roth Senior Professor of Retailing at the Harvard Graduate School of Business Administration in Boston. He is also a director of Quaker Oats Co., Chicago; and of Nieman Marcus Group, Circuit City, Luby's Cafeterias and Harrah's Entertainment. Concurrently with the annual meeting, Hannaford released financial results for the first quarter ended March 29, which showed earnings up 6.2% to $15.6 million, sales up 10.1% to $759.9 million and same-store sales up 3%.
Adjusting for Easter holiday sales, which occurred in this year's first quarter and last year's second quarter, same-store sales rose 2.1% for the quarter, the company said.
Talking about Moody at the annual meeting, Hugh G. Farrington, president and chief executive officer, said, "Jim was a guiding force in building this company and forming its character."
Addressing shareholders, Moody said, "It's been a team effort, and I've enjoyed playing various roles on the team. That we have been mainly successful in what we've undertaken has provided us with a real sense of accomplishment."
Moody, 65, joined Hannaford in 1959 as controller and served successively as treasurer, vice president of corporate development, executive vice president, chief operating officer, and CEO -- a post he held for 19 years -- before being named chairman in 1984.
At the time Moody joined the company it was a food wholesaler with customers in Maine and parts of New Hampshire. During his tenure as CEO, Hannaford became a retail chain by converting the stores it was supplying to corporate stores and moving into southern New Hampshire and Massachusetts through an acquisition, and also into New York.
Writing in the company's annual report, Farrington said Moody's formula for success was to "identify the best people and develop them; secure the best store locations; invest in competitive advantages and use them effectively to attract customers; and maintain superior store operations."
Moody was also chairman of the Food Marketing Institute, Washington, from 1985 to 1987.
In other highlights of the annual report:
Hannaford said it remains in a heavy investment phase of its Southeast expansion program, with 10 new stores, three relocations and two expansions scheduled there this year, compared with five new or expanded Southeast stores last year, plus one new unit, two relocations and one expansion scheduled for the Northeast this year, compared with five last year.
"We expect to increase our net selling area by more than 11% this year, and we expect to spend in excess of $175 million on these and other projects," Farrington said.
Hannaford said it spent $230.6 million on capital investments in 1996, encompassing a 7.8% increase in total selling area to 4.5 million square feet and the opening of a 465,000-square-foot distribution center in Butner, N.C.
All 40 of Hannaford's Southeast stores now carry the Hannaford name following the conversion last year of the Wilson's stores in Wilmington, N.C., that it acquired in 1994 to enter the Southeast.
On the subject of store staffing in the Southeast, the company said, "Because of the low unemployment rate in our Southeast markets, adequate staffing of our stores has been a significant challenge. We addressed this issue in 1996 with additional resources, [and] as a result, our established stores are now at or close to being fully staffed.
Hannaford said it plans to evaluate the future of home delivery this year, with an eye toward expanding its current program, which is called Hannaford's HomeRuns.