Meanwhile, during its Q3, which ended Nov. 3, the grocer's earnings fell from the same year-ago period to $81 million from $114 million. Without damages incurred from the quarter's three hurricanes, earnings would have fallen at $91 million. Year-over-year same-store sales were also down, falling 0.4%.
Rising fuel prices were cited as a challenge to the company during the period, as well as competition, executives say. "We continue to feel strong competitive pressure when we don't have a number one or strong number two market share position," Johnston says.
So far this year Albertsons has recorded $284 million in earnings, compared to $249 million in 2004. Year-to-date same-store sales are up 0.6%, while total sales have hit $30.1 billion, up from $28.8 billion.
Albertsons continued to combine its drugstores with grocery stores and finished the quarter with 1,200 combination units. The company has also tested Avenu, an in-store marketing program in its Jewel-Osco stores and plans to roll out the concept to other banners next year.
During the quarter, Albertsons opened seven new stores, closed 18 and remodeled 41. The quarter ended with a total of 2,476 units under the Albertsons, Acme, Bristol Farms, Jewel-Osco, Osco Drug, Sav-on Drugs, Shaw's, Star Market and Super Saver names.
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