BOISE, Idaho — Albertson's Inc. plans to open 175 new stores in the next five years as part of a $1-billion expansion plan, the head of the Boise-based supermarket and drug store chain said.
During the company's annual stockholders meeting Friday, Albertson's Chairman and Chief Executive Warren McCain said the chain will open 33 new food and drug stores in 1987 and is expected to spend $1.3 billion on capital improvements in the next five years.
Most of those expenditures--about $884 million, or 68%--will be spent to open new stores, the chief executive said.
Albertson's is the eighth-largest grocery chain in the United States, with 455 stores operating in 17 states throughout the West and South. The proposed expansion would bring the nationwide total to 630 stores.
"We're embarking on a major expansion of the company," said Vice President and Treasurer David Connolly.
Last year, the chain opened 21 new stores and remodeled 17 others.
McCain said another 15% of the company's expenditures would be used to remodel existing stores and the remainder will be used to replace equipment and build new distribution facilities. The company said it expected to use its own funds for most of the proposed expansion projects.