Salisbury, NC In his first address to shareholders of Food Lion, Inc., newly-appointed Chief Executive Officer Bill McCanless charted a course to boost the value of the company to shareholders. The Company’s plans include maintaining a strong customer focus, concentrating on its strengths of low prices and convenient supermarkets, and enhancing the business through new stores and the aggressive pursuit of acquisitions.
McCanless said there is room for organic growth within the Company’s core using an “ink blot” approachor adding stores in areas that can be served by Food Lion’s existing distribution network.
“This year, we will fill in stores in our core markets of North Carolina and Virginia and expand our presence in states, like South Carolina and Tennessee where there are still opportunities,” McCanless explained. “We are also seeking to acquire high-quality chains, both within and outside existing markets.”
He pointed to the successful integration of Kash n’ Karry supermarkets, which Food Lion acquired in late 1996. In addition to the purchase of the West Central Florida chain, Food Lion has also acquired 64 real estate site locations in the Company’s key operating areas over the past five years.
McCanless shared the stage with Chief Financial Officer Laura Kendall, Chief Operating Officer Joe Hall, and newly-elected Chairman Pierre Beckers, who confirmed Delhaize’s support for Food Lion’s strategy.
Beckers told shareholders, “We want Food Lion to be a part of the consolidation in the U.S. retail sector, and we are actively looking for opportunities that would give Food Lion new areas of development in the future. If a worthwhile acquisition target becomes available, Delhaize will consider providing additional financial support, if needed to make the deal happen.”
McCanless said Food Lion’s long-time relationship with Delhaize will be a valuable asset as the supermarket business becomes more global. The Company is considering a partnership in which Food Lion would own 51 percent of a small group of supermarkets in Thailand.
Chief Operating Officer Joe Hall outlined some of the Company’s customer-focused initiatives currently in test in selected markets, including self-checkout lanes, in-store banks, and The Medicine Shoppe pharmacies.
In other business, shareholders voted to appoint Pricewaterhouse Coopers LLP as the Company’s independent accountants. Shareholders voted in a new slate of directors: Pierre-Olivier Beckers, Dr. Jacqueline Kelly Collamore, Jean-Claude Coppieters
’t Wallant, Pierre Dumont, William Ferguson, Dr. Bernard Franklin, Joe Hall, Margaret Kluttz, Bill McCanless and Dominique Raquez.
With 1998 sales of $10.2 billion, Food Lion is one of the nation's largest supermarket chains. Food Lion's 92,000+ employees offer Extra Low Prices and More to over 10 million shoppers a week at more than 1,141 Food Lion stores in 11 states and 93 Kash n’ Karry supermarkets in West Central Florida. Food Lion, the supermarket industry’s largest supporter of the
Children’s Miracle Network, is also a proud volunteer in the
Environmental Protection Agency Energy Star Program.
Contact: Chris Ahearn (704) 633-8250, Ext. 2892