In the eastern states FNS focused particular attention on updating and expanding
existing stores. The year also saw the completed innovation of the Edwards supermarket
formula, with a broadened assortment and improved service and layout. The reposi
tioning has proved successful, as all of the Edwards stores achieved renewed sales
growth after remodeling. Similarly, the Finast stores in this region showed considerable
improvement.
On Long Island (N.Y.), FNS took a new direction by opening what has proven to be
a highly successful 53,000 square foot supermarket in Medford. The new store formula
is based on extensive fresh departments offering fish, meat, flowers and a wide assort
ment of luxury articles, carefully matched to local affluence. There are plans to build
similar stores on Long Island in the coming years.
In the Cleveland (Ohio) market, the emphasis lay on opening new Finast Superstores
while phasing out the Pick-n-Pay stores. Within two years the small and obsolete Pick-n-
Pay supermarkets will have vanished entirely. In this region, FNS will focus on opening
superstores in the 65,000 square foot range, with large fresh food and non-food depart
ments. By 1989 year end FNS was operating nine such superstores in Cleveland. For the
year as a whole, FNS opened five new stores, remodeled five others and closed eight
units, bringing the total number of FNS stores to 112 and increased its sales area from
2,606,749 square feet to 2,707,813 square feet.
In 1990, FNS will expand considerably. A number of store openings and renovations
are being planned. Sales and operating results are expected to rise.
Ahold's third chain in the US, Giant Food Stores, had another excellent year. Sales grew
from $697 million in 1988 to $790 million in 1989, representing a 13.4% rise, which is
largely attributable to its strong autonomous expansion. The favorable sales trend
carried through to operating results.
During 1989, Giant opened four new stores, remodeled three and closed one. This
brought the total number to 52. The sales area increased by 12.7% to 1,195,743 square
feet.
In the course of 1989, Giant opened its new prototype for the nineties in Hagerstown
(Md.). This supermarket measures over 54,000 square feet and offers a broad assortment
of groceries as well as an improved range of fresh food offerings. This new approach will
serve as a model for other new stores and for improvements in existing stores.
In the second half of 1989, to contend with a new competitor in the Harrisburg (Pa.)
market, Giant lowered its margins to meet the newcomer's pricing strategy head on. As
a result, Giant managed to maintain its market share in this region.
In 1990 Giant expects a further growth of sales and operating results. New stores will
be opened and a number of existing supermarkets will be enlarged or remodeled.
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