Supermarkets

Albertson's, Inc.

Albertson's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: ABS)") else Response.Write("(NYSE: ABS)") end if %> is one of the largest retail food-drug chains (#4) in the U.S. with operations in 20 Western, Midwestern and Southern states. As of January 30, 1997, the company operated 847 stores. Retail operations are supported by 11 Company-owned distribution centers. Albertson's combination food-drug stores are super grocery/super drugstores under one roof and range in size from 35,000 to 75,000 square feet. The company historically has executed better than its competitors, operating clean and lean stores without much merchandising fanfare. As the performance gap has narrowed with respect to return on investment measures, Albertson's low-key presentation of its wares may have resulted in loss of market share to competitors. Albertson's current return on invested capital of just about 3% leaves something to be desired.

The Financials

Albertson's reported increased sales for the 13 weeks ended July 31, 1997. Sales were $3.7 billion, an increase of 5.7% over the $3.5 billion for the similar 13-week period last year. Net earnings were $109.4 million compared to $120.7 million last year. Earnings per share for the second quarter were $0.44 per share compared to $0.48 per share last year.

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