by Karen Brune Mathis
Managing Editor
Winn-Dixie Stores Inc. intends to add six stores in the Jacksonville market and will keep Downtown in mind for growth, according to company CEO Peter Lynch.
The chain, which will open one of its new “transformational” stores in July in St. Johns County, plans to continue remodeling area stores as well as look for new sites. It has 51 stores in the Jacksonville market.
“I think the market could handle another six locations, if we could find them,” said Lynch, also chair and president of the Jacksonville-based company.
Lynch said Monday the sites could be new construction or renovations. “It’s easier now. The good news is the rent’s pretty cheap,” he said.
Winn-Dixie remodeled its Downtown store at 777 Market St., near Union and States streets, in 2008.
Mayoral candidate Alvin Brown, a former Winn-Dixie employee, has talked about grocery locations Downtown during his campaign.
“We’re always looking for opportunities,” said Lynch, adding that it would have to
make sense.
Voters will choose today between Brown, a Democrat, and Republican candidate Mike Hogan.
Brown often referred to his employment at Winn-Dixie during the campaign. “We feel good he was putting Winn-Dixie in a very positive light,” said Lynch, who said he didn’t know Brown was going to refer to the company during his bid for mayor.
Lynch met with reporters Monday at the chain’s Westside headquarters to release third-quarter financial results.
The 86-year-old chain reported net income for its fiscal third quarter of $23.4 million, up 12 percent over the previous year. Net sales remained flat at $1.6 million. Its 52-week fiscal year ends June 29.
“We felt it was a very good quarter for us,” said Lynch. “We’re starting to see the economy ease up. It is getting better.”
Lynch said Winn-Dixie looks forward to another good quarter and he expects next year could be better.
“A lot of good things are happening,” he said. “I’m more optimistic about next year than I was for this year.”
Lynch said the past 2 1/2 years have been challenging.
“We haven’t released our plans for next year, but I continue to see good signs out there,” he said.
Net sales for the first three quarters fell slightly to $5.26 billion from $5.3 billion. The company posted a net loss of $77.4 million for the 40 weeks, compared with income of almost $15 million the year before.
The loss included a net loss of $42 million from discontinued operations this year, compared to a net loss from discontinued operations of $5.8 million the year before.
Winn-Dixie said capital spending for fiscal 2011 is now expected to be about $115 million, down $17 million from its previous estimate because some of the spending will now take place in fiscal 2012.
Two of the 17 announced transformational stores are nearing completion and the remaining 15 should be completed in the coming months, the company said.
The “transformational stores” are the supermarkets that are completely remodeled, floor to ceiling and wall to wall. Winn-Dixie said earlier this year that the changes result in average per-square-foot sales of $475, compared with $300 for the other stores.
The Winn-Dixie along County Road 210 at the St. Johns and Duval county line is being transformed. Three Winn-Dixie stores have been transformed in Covington, La., Mobile, Ala., and Margate in South Florida.
The company invests about $5.5 million in the transformed stores vs. $2 million for basic renovations.
Winn-Dixie filed for Chapter 11 bankruptcy protection six years ago in February 2005 and emerged in November 2006.
It operates 484 stores in Florida, Alabama, Louisiana, Georgia and Mississippi.
356-2466