ShopKo Earmarks $60MM for Improvements in 2005
Green Bay, Wis., ShopKo Stores Inc. announced it would spend $60 million on capital improvements this year, including store remodels and IT upgrades.
Included in ShopKo’s plans are the remodels of 16 ShopKo stores and 35 Pamida locations. The retailer also will open eight new Pamida stores and install 12 pharmacies in existing Pamida locations. Also, ShopKo is in preliminary planning to add three new ShopKo Express Rx stores to open in 2006.
The $60 million capital-spending plan also includes the replacement of some merchandising IT applications, the replacement of the optical system in the ShopKo division, and the installation of pharmacy robotics in ShopKo locations.
ShopKo also released its fourth-quarter and 2004 earnings: In the fourth quarter, the retailer recorded net income of $35.4 million, up 12% year-over-year. Consolidated sales declined 4.5%, due in part to a 4.4% decrease in same-store sales.
For the fiscal year ended Jan. 29, 2005, ShopKo’s net income grew 10.7% to $43.3 million. Consolidated sales were flat at $3.17 billion. Same-store sales decreased 0.4% for the year.