SALES, PROFIT INCREASES REPORTED BY FOOD LION

SALISBURY, N.C. -- Food Lion here said efforts to strengthen its business at existing stores resulted in sales and earnings increases for the third quarter and 36 weeks ended Sept. 9. Net income rose 12.2% for the 12-week quarter to $41 million and 14.5% for the 36-week period to $117.4 million. Sales jumped 3.5% for the quarter to $1.9 billion and 3.7% for the year to date to $5.7 billion, while same-store sales rose 1.7% for the quarter and 2.8% for the 36 weeks. Tom Smith, president and chief executive officer, said Food Lion plans to open 38 stores during the fourth quarter, including three larger-format stores. The first of the three opened last week in Wake Forest, N.C. According to Smith, the chain's growth plans involve expanding its business while improving the profitability of all stores. Smith said the company plans approximately 120 remodels for 1996 featuring upgraded deli-bakery departments, expanded produce departments and updated decor. Nearly half of the remodeling projects will involve the addition of more than 8,000 square feet of retail space per store. The company also said it expects to open 50 new stores in 1996, located primarily in the Southeast and Mid-Atlantic states. Jonathan Ziegler, a securities analyst with Salomon Bros., New York, said Food Lion anticipates a slowdown in same-store sales growth in the fourth quarter because of more aggressive competition.