MAUMEE, Ohio -- Seaway Food Town here plans to expand through acquisitions and new construction during fiscal 1999, Richard B. Iott, president and chief executive officer, said in the company's annual report.
ditional, limited-assortment discount supermarket called Kash N Karry in fiscal 1998.
"We look forward to fiscal 1999 with optimism," Iott said, adding that "in the first half of 1999, we will open a new supermarket in Adrian, Mich.; complete two major expansions and remodel three supermarkets and two discount drug stores."
Emphasizing that "we are in an acquisition mode and looking for ways to expand," Iott said the company's growth would be confined to its trade area, which he defined as "a radius of about 150 miles from Toledo, excluding major markets" such as Columbus, Dayton, Cleveland or Detroit.
"Been there, done that, don't want to do it again," Iott said. However, "Indiana is a possibility," he added.
During fiscal 1998, the company spent $19.8 million on capital additions, a 1.5% increase compared with fiscal 1997. Sales rose 2.8%, to what Seaway reports as "an all-time high" of $625.8 million, while net income for fiscal 1998 increased 8.9% to $7 million.
The capital expenditures were mostly for new construction and expansion projects, the company said. The programs are implemented "by periodically reviewing all stores," Iott said in the report. "In addition, the company continues to look for existing, well-operated stores which could be acquired by the company.
Addressing the year-2000 computer problem, Iott said in the report that the company is still evaluating its systems and will roll out new systems during the 1999 fiscal year if necessary. Seaway spent $520,000 on a year-2000 project during fiscal 1998 and "the management of the company believes it has an effective program in place to resolve the year-2000 issue in a timely manner. However, the company cannot guarantee that it will not experience year-2000 problems," Iott said.