ARDEN GROUP POSTS VOLUME, PROFIT GAINS

LOS ANGELES -- Arden Group, parent company here of Encino, Calif.-based Gelson's Markets and Mayfair Markets, said sales and earnings increased for the third quarter ended Sept. 30. Net income for the 13-week quarter rose 43.6% to $1.8 million, while total sales and same-store sales increased 2.1% to $61 million. For the 39 weeks, net income rose 57.8% to $5.5 million, while total sales and same-store sales fell 1.8% to $181.2 million. The company said sales during the 39 weeks of the prior year included $4.6 million from GPS Pool Supply, a wholly owned subsidiary that Arden sold in May 1994. Excluding that volume, sales for the year to date would have been up 0.8%. According to the company, sales have been negatively affected by competitors opening new stores within Gelson's trading areas. The company said it will open a new Gelson's in Calabasas, Calif., early in 1996; it also said it has secured an option to purchase a piece of real estate and has signed two long-term leases, with the intent of opening three additional Gelson's locations, subject to due diligence and other regulatory conditions. Arden operates eight Gelson's and three Mayfair supermarkets. It closed one Mayfair unit early in the current quarter and sold it to another supermarket operator.