Winn-Dixie

Winn-Dixie Stores Inc. (Jacksonville, Fla.) reported a net loss from continuing operations for its second quarter of fiscal 2005 ending Jan. 12, 2005.

Sales for the 16 weeks decreased 4.7 percent and same-store sales 4.9 percent.

“This was a tough quarter for the company,” said president and ceo Peter Lynch, “with competition continuing to intensify and holiday sales below anticipated levels. The decline we have experienced needs to be addressed swiftly and we intend to do so. Having spent the last two months taking an in-depth look at the company and visiting over 50 stores across our chain, it’s clear to me that Winn-Dixie has both serious challenges and significant opportunities. The Company has great locations in many desirable markets, but the merchandising in many locations needs improvement and there is a lack of excitement in the stores.”

As of today, Winn-Dixie has completed store upgrades in 65 of the 92 targeted stores in the Miami-Ft. Lauderdale Designated Market Area (DMA), at a total cost of approximately $40 million. The Company expects that it will cost an additional $20 million to complete the lead market upgrade in the Miami-Ft. Lauderdale DMA. The Company has also upgraded all 22 stores in the Montgomery, Ala. DMA at a cost of approximately $14 million.