2000 — Retailing in the New Millennium

MMR, June 25, 2001

* As part of its mission to achieve 8% to 10% square footage growth this year, ShopKo Stores Inc. plans to debut three ShopKo outlets this spring and two in the fall in Illinois, Nebraska and Wisconsin, including one replacement location. In addition, seven new Pamida outlets are slated to open this spring in Ohio, Illinois, Iowa, Michigan and Kentucky, followed by an additional store in Ohio during the summer. The Pamida openings are the first of a planned 20 to 25 for the year.

* Sears, Roebuck and Co., French hypermarketer Carrefour SA, and E-commerce software provider Oracle Corp. will form GlobalNetXchange, the world's first business-to-business on-line exchange serving the retail industry. The exchange, a joint venture based on Oracle's E-business technology, initially will target Sears' and Carrefour's combined $80 billion in purchases from 50,000 suppliers, partners and distributors. It will serve as an open, international on-line exchange where members can buy, sell, trade or auction goods and services over the Internet using standard web browsers.

* Wal-Mart.com names Jeanne Jackson chief executive officer of the Internet and E-commerce arm of Wal-Mart Stores Inc. Previously, the 22-year retail industry veteran served as chief executive officer of the Banana Republic division of The Gap Inc., and also headed the on-line programs for the company's Gap, Banana Republic and Old Navy divisions.

* In the wake of a larger-than-expected third quarter loss on lower sales, Grand Union Co. removes J. Wayne Harris from his roles as chief executive officer, chairman of the board and a director of the company. President, chief merchandising officer and board member Gary Philbin is named to replace Harris as chief executive officer. Stephen Peck, a non-management director, assumes the position of board chairman. In other top-level management changes, Jack Partridge Jr. resigns as vice chairman, chief administrative officer and director. Jeffrey Freimark, who previously was executive vice president and chief financial officer, succeeds Partridge as chief administrative officer. Freimark is also elected to the board of directors and will remain chief financial officer.

* As it files for Chapter 11 bankruptcy protection, Eagle Food Centers Inc. moves to close 19 of its 83 stores. Eagle plans to continue operating 64 outlets in Illinois and Iowa and expects to post sales of more than $800 million next year, following the closure of the 19 underperforming locations. The company, which operates outlets under the Eagle Country Market and BOGO's banners, already has secured $50 million in interim debtor-in-possession financing from its largest secured lender, Congress Financial. The funding should allow the chain to meet ongoing financial commitments and continue an aggressive marketing campaign to build sales.

* Reaching out to the significant percentage of its customers who are Spanish speaking, Ames Department Stores Inc. introduces a Spanish version of its corporate web site. The site, which can be accessed through the company's home page at www.AmesStores.com, or directly through http://www.espanol.AmesStores.com, features information about the retailer's "Bolsas y Bolsas de Oferetas" (Bargains by the Bagful) and "El Servicio A " (A Service) as well as store locations, employment opportunities, community relations programs, the Ames 55 Gold Savings program and an on-line circular. The Spanish web site is the latest in a series of moves by Ames to enhance shopping options for customers. Last year the company rolled out in-store electronic kiosks at select outlets to enable shoppers to purchase items directly from the company's E-commerce providers.