GIANT CITES ITS SALES STRATEGY AS EARNINGS DROP IN FIRST HALF

LANDOVER, Md. -- Giant Food here said its merchandising promotional strategy in the Northeast -- including deep discounting into major categories -- has cut into earnings for the first half of fiscal year 1998. mpared with $874.42 million a year ago. Net income was down 67% to $7.64 million, or 13 cents per share, compared with $23.17 million, or 39 cents per share, in the year-ago quarter."While

LANDOVER, Md. -- Giant Food here said its merchandising promotional strategy in the Northeast -- including deep discounting into major categories -- has cut into earnings for the first half of fiscal year 1998.

mpared with $874.42 million a year ago. Net income was down 67% to $7.64 million, or 13 cents per share, compared with $23.17 million, or 39 cents per share, in the year-ago quarter.

"While in the short term, earnings could be under historic levels, for the long term, a stronger sales base will ultimately produce stronger results," the company said. "The results for the first half of the fiscal year are consistent with that strategy."