Albertson’s CEO to retire; stock buyback is expanded

Monday, Dec. 11, 2000 | 11:49 a.m.

SUN WIRE REPORTS

BOISE, Idaho -- Albertson's Inc., the country's second-largest supermarket chain behind Kroger's, said Thursday that Chairman and Chief Executive Gary G. Michael will retire in June.

The Boise-based company said it will immediately search for a replacement. Michael, 60, has been CEO for 10 years and has worked at Albertson's for 30 years.

Albertson's had $37.5 billion in sales in its fiscal year ended in January. In Las Vegas, it operates Albertson's grocery stores and Sav-On drugstores. It picked up the Sav-On stores with its acquisition of American Stores.

Separately, Albertson's said it expanded its $500 million share buyback program by an additional $1 billion.

The firm said that under the revised buyback program, Albertson's will purchase up to $1.5 billion of its common stock between Apr. 25, 2000, and Dec. 6, 2001.

Albertson's, which operates more than 2,500 retail stores in 36 states across the United States, has bought back 14.6 million shares worth $350 million under this program in the third quarter.

Thursday's announcements followed Monday's third-quarter profit report from Albertson's, in which it missed analysts' earnings estimates and lowered expectations for the fourth quarter. Analysts said Albertson's is still struggling with its acquisition of American Stores.