Safeway 1997 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 1997 Safeway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

Capital expenditures increased significantly in 1997. Returns on
invested capital continued to improve as we built and remodeled
stores more cost-effectively, and operated them more efficiently,
than in the early 1990s. We maintained negative working capital
for the fourth consecutive year, reflecting reduced warehouse
inventory levels and improved payables management.
Combined capital spending at Safeway and Vons was $829 million
in 1997.
Safeway and Vons opened 37 new stores and remodeled 181
existing stores.
Construction began on a new distribution center in Maryland.
We signed a new bank agreement, entered the commercial paper
market and refinanced a significant portion of our public debt.
Managing Capital
11
Capital Expenditures*
(IN MILLIONS)
$290.2 $352.2 $503.2 $620.3 $829.4
Capital expenditures 
have increased since 
1993, reflecting strong 
operating results.
93 94 95 96 97
* Defined on pages 13 and 14