$100 Million Invested in 2001; 25 Percent Increase to $125 Million Planned in 2002; Three Stores to Close in Miami, Underscoring Company-wide Efficiency Push
Boise, Idaho, PRNewswire/ — Albertson’s, Inc. (NYSE: ABS – news) today confirmed its commitment to the state of Florida. This year, the Company invested $100 million throughout the state in new store construction and remodels. An estimated investment of $125 million is planned for 2002.
“We are here to stay,” said Larry Johnston, Albertson’s chief executive officer and chairman of the board. “Florida is one of Albertson’s key strategic markets for the future.”
Reflecting on recent media and analyst speculation that the Company will leave the state of Florida, Mr. Johnston continued, “In 2001 and 2002, Albertson’s will invest a quarter of a billion dollars in new stores and remodels in Florida. This is an attractive profitable market for us and one that we define as high growth. Florida is one of our strategic markets of choice.”
“Our 13,000 Florida associates are energized by the support our Company has shown by designating Florida as a strategic market,” said Shane Sampson, Albertson’s Florida division president. “With this type of investment, Albertson’s will continue serving our customers everyday, working to become Florida’s food and drug retailer of choice.”
Although Albertson’s confirmed that it will close three Miami-area store locations this week in connection with the Company’s previous announcement to close 165 underperforming stores, it plans to increase its capital expenditures in Florida to approximately $125 million in 2002 … a 25 percent increase.
“There will always be stores or markets that do not build shareowner value,” Johnston said. “Albertson’s is intent on building shareowner value by eliminating underperforming assets. The three stores we are closing in Miami fit that profile; however, these closures have no bearing on our unwavering commitment to the future of Albertson’s in Florida.”
Albertson’s, Inc. is one of the world’s largest food and drug retailers, with annual revenues of approximately $37 billion. Based in Boise, Idaho, the Company employs more than 235,000 associates and operates more than 2,500 retail stores in 36 states, under banners including Albertson’s, Jewel- Osco, Acme, Sav-on Drugs, Osco Drug, Max Foods, Super Saver, and Seessel’s by Albertson’s.
The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause actual results to differ from those set forth in the forward-looking information can be found in the Company’s filings with the Securities and Exchange Commission, including the Company’s Form 10-Q.
SOURCE: Albertson’s, Inc.