ALBERTSON'S PLANS TO OPEN 295 STORES

BOISE, Idaho -- Albertson's unveiled a five-year, $2.6 billion capital expenditure plan at its annual meeting here last week that includes the opening of 295 stores.

mistic about our future," said John Carley, president and chief operating officer, who laid out the plans.

Carley said the company, which operates in 19 states, would continue to consider moving into additional regions, but he was short on specifics. "When the right opportunities present themselves, we'll also move into new geographic markets," he told shareholders.

In the current fiscal year, the company plans to spend $489 million on capital expenditures, Carley said. This will cover the cost of opening 50 new stores, five of which will be replacements. Additionally, Albertson's will remodel 50 existing stores and expand 14 of them this year.

Also part of the five-year capital program are $55 million to replace and upgrade existing equipment; $176 million to enhance the distribution system, and $96 million for information systems and technology.

The company plans to finance

its plan from internally generated funds and by taking a few leases where it is unable to own store sites. Albertson's posted sales of $11.3 billion and net earnings of $339.7 million in fiscal 1993. Turning to company performance, Carley told the meeting that there has been "outstanding improvement" in Texas and that the company is continuing to gain ground in the highly competitive Florida market. In Florida, where Publix Super Markets and Winn-Dixie Stores are major competitive factors, Albertson's has been buoyed by its fledgling distribution center in Plant City. The center, completed in March, provides the bulk of all grocery and sundry products for Albertson's 78 stores in Florida.

"Florida has been a tough market," Carley said. "But sales and operating trends are much improved and the new distribution center should help us tremendously."

The chain now has 10 distribution centers serving its 680 stores nationally. The distribution network supplies 70% of all products for Albertson's stores.

"By 1995, we expect to supply 78%," Carley said. "Local vendors will supply the rest of the products directly to our stores."

Albertson's has split its Texas operations into two divisions to better manage growth there, Carley said. There are 126 stores in Texas: 94 in the North Texas division and 32 in the South Texas division. All of the 78 Jewel Osco stores acquired two years ago have been fully integrated and are showing "outstanding improvement," he added.

Sales are regaining strength in Utah after a prolonged price war with Smith's Food & Drug Centers last year, Carley told shareholders. The company's sales throughout most of the Southwest, Midwest and Rocky Mountain regions continue to do well.

But the chain's business in Seattle has softened. Carley blamed the market's troubles on layoffs at Seattle-based Boeing.

Meanwhile, sales in California are rebounding.

"Northern and southern California already were strong markets for Albertson's, with good sales increases," Carley said. "We expect even better results as the economy there continue to improve."