WASHINGTON -- Giant Food here reported increased sales and net income in the third quarter, but showed decreased net income for the year to date.
ing of three new food and drug combination stores.
Same-store sales rose .9%, but would have increased 1.5%, had not new stores grabbed sales from existing ones, the company said.
Net income rose to $18.6 million from $17.7 million, a 4.7% increase. For the year to date, net income fell 9% to $53.6 million from $58.9 million. Sales in the period rose 3.4% to $2.5 billion from $2.4 billion. Same-store sales rose 0.6%
Giant emphasized in a statement that it has "a strong plan for growth in the next several years." It expects to open at least 11 food-drug stores of more than 60,000 square feet in the 18 months beginning Feb. 26, 1995, the start of its 1996 fiscal year. Five of the new stores will be Super G units located in Giant's new Northern territory, comprising Delaware, New Jersey and Pennsylvania; five will be in the metro Washington area, and one will be in the metro Baltimore area.
The company opened its first Super G food and drug combination store in Bear, Del., a move the company credited with fueling the quarter's strong increase in sales. Debra Levin, an analyst with Morgan Stanley, New York, said that while Giant's expansion would "contribute to earnings growth longer term," the units in new areas would "be a drag on earnings initially, as entering new markets is challenging."
J. Sainsbury, London, recently acquired 50% of Giant's voting common stock and 16% of its nonvoting equity. Ed Comeau, an analyst with Lehman Brothers, New York, said London-based J. Sainsbury's acquisition would encourage Giant's expansion plan and fuel the chain's effort in new store development.
