"Exiting these under-performing markets finalizes another major chapter in the restructuring of our company," stated Larry Johnston, chairman and chief executive officer. "This will now allow us to focus resources on strategic markets that build shareholder value and offer opportunity for significant future growth."
These market exits will occur through a combination of store closures and store sales. Combined, the markets represent about $1.3 billion in annual revenues but as a group they fail to meet or exceed the Company's defined return on invested capital hurdle rate. Division offices, located in Memphis, Houston and San Antonio will also be closing.
Moderator Comment: Was exiting these markets a good move for Albertson's? Who benefits most from this decision?
Albertson's management clearly thinks that it had too far to climb to make major in-roads in these markets. Whether the chain can now use the resources previously dedicated here to drive share and expand territory from markets it is stronger in will be the true test. [George Anderson - Moderator]