Safeway 1998 Annual Report Download - page 7

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090 91 92
Began construction of new
1.8 million sq. ft. distribution
center in northern California.
Sold an additional 70 million
shares of common stock.
Retired $565 million of 14.5%
LBO-related debt.
Total sales surpassed $15
billion mark.
Identical-store sales essentially
flat compared to 1990.
Operating and administrative
(O&A) expense-to-sales
margin rose to 23.51%.
Operating cash flow as
percentage of sales increased
to 5.74%.
Capital expenditures increased
to $635 million.
Identical-store sales
declined 1.6%.
O&A expense increased
to 24.47% of sales.
Operating cash flow declined
to 5.07% of sales from 5.74%
in 1991 as recession-weary
consumers “ traded down” to
less profitable product mix.
Opened new distribution center
in northern California.
Steve Burd, long-time
consultant to Safeway, named
president.
In fourth quarter, implemented
strategy to reduce costs,
increase sales and improve
returns on capital.
Completed refinancing of
$1 billion of subordinated debt.
Completed initial public offering
(IPO) of Safeway common stock.
Adopted new company name:
Safeway Inc.
Announced five-year $3.2 billion
capital expenditure program.
Honored by the President’s
Citation Program for Private
Sector Initiatives, for an unprece-
dented sixth consecutive year.
Identical-store sales gain
slowed to 2.5% from 4.6% a
year earlier.
Operating cash flow improved
to 5.68% of sales.
Capital expenditures rose
30.3% to $490 million.
Safeway Post-IPO Timeline*