As it enters the Southeast market for the first time, Hannaford Bros. is likely to follow the same strategy it has used to achieve success in New England. Hannaford worked hard in the 1990s to lower shelf prices, in part by reducing operating expenses, and to add new square footage with a strong store development program. The result has been 15 consecutive years of earnings growth.
spite an influx of new competitors, Hannaford has remained committed to its store development program and added more than 10% to its food store square footage in two of the past three years.
INCREASES TO SUPERMARKET SALES AREA
With the combination of steady increases in square footage and lower expenses, Hannaford's net income has climbed every year this decade.
NET GAINS (in millions)
1990 $40 - 45
1991 $40 - 45
1992 $45 - 50
1993 $55 - 60
With its aggressive pricing policy and a slightly stronger economy, Hannaford should finally reverse several years of declining same-store sales in 1994.