During its coming fiscal year, which started June 28, the company is remodeling 23 during the first half of the period and 50 during the back end. At $1.9 million per store, Winn-Dixie has $150 million earmarked for capital expenditures on the effort.
So far the company has renovated stores in geographic areas throughout its portfolio, which spans Florida, Alabama, Georgia and Mississippi, but 75% of the next 50 facelifts will have a concentration in Florida. The remodels include new colors, lighting, flooring, fixtures, produce sections and other improvements.
Winn-Dixie only plans one new store in the current fiscal year. At the same time, it is seeing less expansion by competitors, such as Wal-Mart and Publix, in its key markets, says Peter Lynch, the grocer's chairman and chief executive officer.
During its fourth quarter, which ended June 27, Winn-Dixie's same-store sales rose 1.3% year over year, while total sales were up 1.5%, hitting $1.7 billion. Net income for the year hit $300.6 million, up from a $361.3-million loss in the prior fiscal period.
During it bankruptcy, which was filed in February 2005, Winn-Dixie shed about 400 units from its total store count. The chain also exited the Bahamas, the Carolinas, Tennessee and Virginia.
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