Caldor to build 2nd DC; narrows 1st qtr. loss

Discount Store News, June 1, 1992

NEWBURGH, N.Y. -- Caldor is leasing a 500,000-sq.-ft. distribution center here, its second.

This Northeast regional discounter, based in Norwalk, Conn., also announced that it narrowed its pretax loss to $6.7 million in its first quarter from $35.2 million in the same three months of 1991.

Caldor expects to occupy the DC this September, said an executive for the developer, National Realty & Development. The distribution center has the potential of being expanded to 900,000-sq.-ft., he added.

The leased site is located in the Northeast Business Center, at I-84 and the New York Thruway. Caldor will be able to supply the entire northeast from the central location, the executive said.

Caldor operates 128 stores, including six opened in 1991. Sales last year totaled $1.9 billion.

In the first quarter of this year, Caldor significantly narrowed its pretax loss from a year ago.

The 1991 pretax loss included payment of $21.5 million in executive bonuses in connection with going public, indicating an operating loss of $13.7 million.

Sales for the February to May quarter in 1992 rose 8.9% to $412 million from $378.7 million. Same store sales increased 3.1%, Caldor stated is its first quarterly sales and earnings report for its 1993 fiscal year.

"Total sales and earnings improved in spite of the tough Northeastern economic climate and the unseasonably cool spring weather," president Marc I. Balmuth, said in announcing the results.

"Inventories are under control," Balmuth said, "and the quarter ended in line with plans. During the first quarter, as a result of our continued focus on cost containment, selling, general and administrative expenses, as a percent of total sales, were reduced by 0.7%.

"In the months ahead we will continue to focus on proper merchandise assortments, value pricing and diligent cost containment."