The head of Albertson's Inc. says the Boise-based grocery giant isn't a candidate for takeover.
"The best reason is because our earnings have been too good," Chairman and Chief Executive Officer Warren McCain told shareholders last week. "When I asked one of the predators why he wasn't making a run at us, he said, `You're just making too much money,' " which would make acquisition costly.The year ending Jan. 28 was the 18th-consecutive year the company reported an increase in both sales and earnings, McCain said. Sales increased 9.1 percent to $5.87 billion.
The future looks promising, McCain told shareholders. In December, the Albertson's board of directors adopted the most agressive five-year plan in company history, he said.
Albertson's Inc. is the the seventh-largest grocery chain in the United States, with 476 stores in 17 Western and Southern states.
In 1988, the company plans to build 35 new stores, remodel 30 stores and complete a distribution center in Gresham, Ore.
Over the next five years, the company plans to open 175 new stores, remodel 150 existing stores and develop programs using in-store computers to reduce operating costs. A $180 million expansion of the company's current distribution system is in the works.
McCain said the key to Albertson's success is the control its executives maintain over real estate acquisition.
Top officials, including McCain, carefully examine prospective sites to determine where new stores should be placed, he said.
Last year, Albertson's opened 34 stores and completed remodeling of 18.