SALT LAKE CITY, June 17 /PRNewswire/ -- At its annual meeting of
shareholders today, American Stores Company (NYSE: ASC) highlighted its
accomplishments over the past year and its plans for the sustained long-term
growth of the company.
In his keynote address, chairman and chief executive officer Victor L.
Lund said, "During the past year, we have transformed many of our key plans
for the future to reality. We are confident that our plan for growth is
working and is squarely on track. We've set our sights very high because we
know our visions of tomorrow will be achieved."
During the past year, the Company completed the enormous task of
centralizing its procurement staff and began to integrate the critical
marketing arm necessary to centrally coordinate its buying and selling
functions. The central marketing group will make the most effective use of
the competitive advantages the company has today, such as its expansive
customer loyalty card program -- the largest in the country. The Company's
loyalty card base is used in customer-specific marketing and the central
marketing group will improve and expand its use.
Mr. Lund also highlighted the excellent progress that has been made on
technology initiatives -- including upgrading the company's pharmacy inventory
management systems and replacing the front-end systems at Jewel-Osco.
The Company is continuing to execute its strategy of aggressively building
new stores. During 1997, the Company opened 96 new or replacement stores and
completed 65 remodels across all divisions of the company, expanding square
footage 4.2%. Equally important was the completion of the headquarters
facility, dedicated at a ceremony held yesterday, and other non-store projects
such as the remodel and expansion of the Company's La Habra, California
warehouse facility, that will sustain the Company's future growth. Mr. Lund
also highlighted several small store acquisitions that are an important part
of the Company's strategy to expand and fill markets quickly.
The Company's officers were in attendance at the meeting and Mr. Lund
recognized the group for their dedication and tenacity in continuing to move
the consolidation process forward and their focus on improving results. As
announced earlier, 1997 sales for the company were $19.1 billion, an increase
of 2.5% over 1996. Diluted reported earnings per share were $1.01 in 1997
compared to $.98 in the prior year.
Mr. Lund concluded his remarks by looking toward the future and
commenting, "The results of our many investments in our business should become
visible and obvious over the next 12 months. Few companies in the food and
drug sector have made the tremendous investment that American Stores has made
over the last 4 years. We believe the foundation for consistent, sustainable
growth has been laid. Our attention to our customers will be a priority. No
one in this business will be as focused on customers as American Stores."
During the business portion of the meeting, the shareholders approved the
proposals for the election of twelve Directors of the Company and the
ratification of the appointment of Ernst & Young, LLP as independent certified
public accountants for the 1998 fiscal year.
Following the business presentation, president Teresa Beck honored the
associates who were awarded the 1998 President's Medallion for their exemplary
service to the Company. Each of the three individual winners received the
special medallion and a cash award. Three teams, represented by their store
or team manager, also received medallions. American Stores Company will also
donate $1,000 to a local charity designated by each of the three teams.
American Stores Company is one of the nation's largest food and drug
retailers. It operates 1,558 stores in 25 states including 267 food and drug
combination stores, 540 supermarkets and 751 stand-alone drug stores. The
Company operates 1,105 pharmacies within its stores. Its stores operate under
the names Acme Markets, Jewel Food Stores, Lucky Stores, Osco Drug and Sav-on
drug.
Cautionary Note: This press release may contain certain forward-looking
statements about the future performance of the Company which are based on
management's assumptions and beliefs in light of the information currently
available to it. The Company assumes no obligation to update the information
contained herein. These forward-looking statements are subject to
uncertainties and other factors that could cause actual results to differ
materially from such statements including, but not limited to: competitive
practices and pricing in the food and drug industries generally and
particularly in the Company's principal markets; the implementation of the
Company's re-engineering initiatives in accordance with the currently
contemplated schedule and budget; the Company's relationship with its
employees and the terms of future collective bargaining agreements; the costs
and other effects of legal and administrative cases and proceedings; the
nature and extent of continued consolidation of the food and drug industry;
changes in the financial markets related to the cost of the Company's capital;
the ability of the Company to access the public debt and equity markets to
refinance indebtedness and fund the Company's capital expenditure program on
satisfactory terms; supply or quality control problems with the Company's
vendors; changes in the rate of inflation; changes in economic conditions
which affect the buying patterns of the Company's customers; and the ability
of the Company and its vendors, financial institutions and others to resolve
Year 2000 processing issues in a timely manner.
SOURCE American Stores Company
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CONTACT:
Dan Zvonek, Director of Investor and Public
Relations of American Stores Company, 801-539-0112
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