Sluggish Albertson's plans store closings
Oct 1, 2005 12:00 PM
Albertson's Inc, the Boise ID-based supermarket chain, plans to shut some of its poor-performing stores after its second-quarter earnings inched up only 3% from 2004's totals.
For the second quarter of 2005, net income reached $107 million, compared with $104 million a year earlier. Earnings from continuing operations were $110 million, a decline from $125 million in 2004. Total sales crept up to $10.19 billion from $10.17 billion a year ago.
The nation's second-largest supermarket chain, Albertson's said it was assessing the value of its holdings and intended to sell stores in “underperforming markets.”
According to market analysts, a purchase of the company in its entirety is unlikely to happen. This is in spite of a recent announcement that Albertson's board of directors was considering selling its 2,500 stores in 37 states as a way to boost shareholder value.
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