DELHAIZE TO DISCONTINUE SAVE 'N PACK

SALISBURY, N.C. -- Delhaize America here said last week it will not continue to develop the Save 'n Pack banner in Florida.

company said.

A store closing charge of $30.5 million has been recognized in the third quarter related to the closing of 15 locations, including the 13 Save n' Pack stores and two Food Lions, Delhaize America added.

The company said the decision to give up on the Save 'n Pack banner followed a strategic review it undertook during the third quarter to identify business units that did not meet its long-term performance expectations.

As a result, the company said it will dedicate its resources to grow its three primary store banners Food Lion, Hannaford and Kash n' Karry.

Also last week, Delhaize America reported a net loss of $10.6 million on sales of $3.1 billion for the 12-week third quarter ended Sept. 9. Comparable-store sales were up 1%.

The company said these results include six weeks of operating results for Hannaford Bros. Co., which Delhaize America acquired July 31.

Third-quarter earnings, before merger costs and one-time adjustments, were impacted by higher interest expense of $18.6 million, and by amortization of intangible assets related to the Hannaford acquisition of $8.7 million.

In addition, the company said it continued it promotional activity in its Food Lion banner through the third quarter in response to a highly competitive environment in the Southeast. While the promotional activity adversely affected the company's gross profit on product sold in the quarter, sales trends met the company's targets and Food Lion's market share in core Southeastern markets is growing, Delhaize America said.

The company added that the comparable-store sales trends are expected to be in the range of 2% for the fourth quarter and into next year.

Bill McCanless, Delhaize America chief executive officer, said, "We are pleased with the progress in the comparable-store sales trend we have established in this highly competitive environment and the progress we are making."