Delhaize America, Inc. (NYSE: DZA)(NYSE: DZB) announced today unaudited fourth quarter 2000 sales of $4.5 billion, an increase of 32.5 percent from fourth quarter 1999 sales of $3.4 billion. For fiscal 2000, sales were $12.7 billion, up 16.3 percent from the previous year. Comparable store sales rose 2.1 percent for the quarter and 0.8 percent for the year.
Sales for the fourth quarter and year are as follows:
Period ended December 30, 2000 January 1, 2000
Fourth quarter $ 4,475,981,179 $3,378,453,379
Full year $12,652,383,643 $10,878,684,265
Number of stores 1,420 1,276
at year end
Fourth quarter sales were in line with the Company's expectations and reflect continued strength in sales momentum. Sales results for the fourth quarter and fiscal 2000 include results from Hannaford Bros. Co., which was acquired on July 31, 2000.
The Company continued its aggressive growth program in fiscal 2000 by adding 66 new stores and remodeling 173 stores. The list of newly opened stores includes 55 Food Lion, two Hannaford and nine Kash n' Karry units. Remodeled stores included 134 Food Lion, 5 Hannaford and 34 Kash n' Karry stores. Square footage increased 19.3 percent during the year to approximately 51.3 million square feet.
Delhaize America also announced today that it plans to spend approximately $450 million on its store growth plans for fiscal 2001. Square footage is expected to grow approximately 4.0 percent to 53.4 million square feet by the end of fiscal 2001. Total sales are expected to grow approximately 17-18% in 2001 with comparable store sales growth estimated to be 1-2%.
The Company plans to open 44 new stores this year, including 37 Food Lion, two Hannaford and five Kash n' Karry units. The Company expects to relocate seven stores, including six Food Lion stores and one Kash n' Karry store. Remodels and/or expansions will benefit 70 stores, including 48 Food Lion, 15 Hannaford and seven Kash n' Karry units. Separately, pending appropriate regulatory approvals, Hannaford has entered into a transaction to acquire four former Grand Union store sites. It is expected that this transaction will be completed in the first half of 2001.
The Company will announce fourth quarter and fiscal year earnings results on February 13, 2001.
On November 16, 2000, Delhaize Group and Delhaize America announced an agreement for a share exchange pursuant to which Delhaize Group will exchange each outstanding share of Delhaize America common stock not currently held by Delhaize Group for 0.4 shares of Delhaize Group. The transaction is expected to be consummated in Spring 2001.
Delhaize America is the parent company of Food Lion, Hannaford Bros. and Kash n' Karry. With more than 1,400 stores on the Eastern seaboard, the combined companies form the fifth-largest supermarket operator in the United States, with stores from Maine to Florida. For more information, visit the Delhaize America website at http://www.delhaizeamerica.com/.
Certain statements contained in this press release and related statements by management may be deemed to be forward-looking statements. These forward- looking statements involve a number of risks and uncertainties, including those described in Delhaize America's filings with the Securities and Exchange Commission. Delhaize America undertakes no obligation to update this forward- looking information except as required by law.
Tawn Earnest, Media Relations, 704-633-8250, ext. 2185, or Amy
Shue, Investor Relations, 704-633-8250, ext. 2529, both of Delhaize America,