NEWS WATCH: GIANT CUTS WORKERS' HOURS, CHANGES PRICES: REPORT...GRAND JURY PROBES WAL-MART'S CONTRACT LABOR...PA. LEGISLATOR SUGGESTS 'STATE GROCERY STORES'

GIANT CUTS WORKERS' HOURS, CHANGES PRICES: REPORT

y of Netherlands-based Ahold, is cutting back the working hours of its store staff over the next three weeks, and changing the prices of thousands of items in an effort to boost profits before the end of the year, according to published reports. The reports cited two unnamed store managers, as well as several other unnamed Giant employees, who said managers have been instructed to reduce payrolls by 4% each week in December and to change the prices on approximately 2,000 items. A Giant spokesman was not available for comment.

GRAND JURY PROBES WAL-MART'S CONTRACT LABOR

BENTONVILLE, Ark. -- Wal-Mart Stores here last week had its first of many expected days in court as Assistant U.S. Attorney Wayne Samuelson launched his grand jury investigation into the company's alleged use of contracted illegal aliens to perform janitorial duties at stores across the country. Samuelson told SN the probe, conducted by the U.S. Attorney's Office for the Middle District of Pennsylvania before a grand jury in Williamsport, Pa., will be secret, and is likely to take a long time. The grand jury investigation follows the late October raids during which federal agents arrested approximately 250 allegedly illegal aliens at 61 Wal-Mart stores in 21 states. A Wal-Mart spokeswoman declined to comment.

PA. LEGISLATOR SUGGESTS 'STATE GROCERY STORES'

HARRISBURG, Pa. -- A state representative is calling on Pennsylvania to get into the supermarket business to serve inner-city neighborhoods. State Rep. Frank Oliver (D-Philadelphia) told SN, "We have state stores [to sell liquor]. What's wrong with also getting some state-operated supermarkets?" In a report released earlier this month, Oliver called on Pennsylvania's Department of Community and Economic Development to "explore the possibility of establishing 'state grocery stores."' Among the study's other recommendations were: to examine the impact of incentives in bringing supermarkets to underserved areas; to have the state assist local governments in assembling parcels of land for supermarket development; and to establish a state grant pool to fund supermarket development projects.

AHOLD SELLS PERUVIAN OPERATIONS TO INVESTORS

ZAANDAM, Netherlands -- Ahold here last week said it agreed to sell its stake in Peruvian supermarket operator Supermercados Santa Isabel. Grupo Interbank and a group of investors led by Nexus Group agreed to acquire the 35-store chain. Terms of the transaction, set to close by year-end, were not disclosed.

DEAN & DELUCA TAKES GOURMET-FOOD CONCEPT UPTOWN

NEW YORK -- Dean & DeLuca here said it opened a new 8,750-square-foot store on Manhattan's Upper East Side earlier this month. The unit, the company's 15th in the world and second in New York, sells an array of prepared foods, produce, cheese, baked goods and coffees, as well as Dean & DeLuca's own line of branded products, including coffees, teas, oils, vinegars, herbs, spices and chocolates.

ROUNDY'S LAUNCHES COMMUNITY GRANT FOUNDATION

MILWAUKEE -- Roundy's has formed a new grant-making foundation to focus on hunger relief, community and family development, and educational and training opportunities, the retailer/wholesaler said last week. The Roundy's Foundation, which expects to give out $300,000 annually, will support nonprofits in the Wisconsin communities where the chain does business. The foundation was launched with a $25,000 grant to the Milwaukee Urban League.