Change of Plans in Alaska
Cincinnati, Fred Meyer Stores will withdraw its application to build a store in Homer, Alaska, according to a report in the Anchorage Daily News. The division of Kroger Co. was to begin the project next spring. “We’ve withdrawn from that site and are looking at what all of the options are for building in the area,” spokeswoman Melinda Merrill told the newspaper. “We need to look at them and decide if they’re the right fit.” Fred Meyer has 11 stores in Alaska.
7-Eleven Spurns Japanese Offer
New York City, 7-Eleven, the world’s largest convenience store chain, rejected an “inadequate” tender offer from its parent company Seven-Eleven Japan. The Japanese bid of $32.50 per share was deemed too low, and consequently not in the best interests of shareholders. 7-Eleven added that its advisors are in conversation about an increased offer, though a higher bid is not assured.
Rite Aid Posts Q2 Loss
Camp Hill, Pa., Rite Aid lost $1.6 million in the second quarter, compared to net income of $9.9 million in the same quarter last year. Same store sales increased 0.5%—consisting of a 0.8% decline in pharmacy and a 3.0% gain in front-end same-store sales.
Revenues for the quarter were $4.13 billion, up from $4.12 billion in the prior-year quarter.
The company remains on track to make its target of 80 new and relocated stores by the end of fiscal 2006.