Harris Teeter 2008 Annual Report Download - page 12

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8
Harris Teeter owns its principal offices near Charlotte, North Carolina, a 517,000 square foot distribution
facility east of Charlotte, a 913,000 square foot distribution facility in Greensboro, North Carolina, and a 90,500
square foot dairy processing plant in High Point, North Carolina. Both distribution facilities contain dry grocery
warehousing space and refrigerated storage for perishable goods. In addition, the Greensboro facility has frozen
goods storage and a single pick facility for health and beauty care products and other general merchandise.
Harris Teeter operates its retail stores primarily from leased properties. As of September 28, 2008, Harris Teeter
held title to the land and buildings of approximately 2.3% of its supermarkets. The remaining supermarkets are
either leased in their entirety or the building is owned and situated on leased land. In addition, Harris Teeter
holds interest in properties that are under development for store sites. In future years the proportion of store
development and store ownership may increase. Harris Teeter’s supermarkets range in size from approximately
16,000 square feet to 73,000 square feet, with an average size of approximately 46,700 square feet. The following
table sets forth selected statistics with respect to Harris Teeter stores for each of the last three fiscal years:
2008 2007 2006
Stores Open at Period End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 164 152
Average Weekly Net Sales Per Store* . . . . . . . . . . . . . . . . . . . . . . $ 414,101 $ 402,982 $ 380,812
Average Square Footage Per Store at Period End . . . . . . . . . . . . . 46,708 46,197 44,535
Average Square Footage Per New Store Opened
During Period ...................................... 48,330 51,737 51,607
Total Square Footage at Period End ........................ 8,220,583 7,576,302 6,769,245
* Computed on the basis of aggregate sales of stores open for a full year.
A&E’s principal offices, six domestic manufacturing plants and one distribution center are all owned
by A&E and are all located in North Carolina. Domestic manufacturing and related warehouse facilities have
an aggregate of approximately 1,662,000 square feet of floor space. A&E has a domestic dyeing production
capacity of approximately 27,000,000 pounds per year. Capacities are based on 168 hours of operations per
week. In addition, A&E leases five distribution centers scattered throughout its domestic markets with an
aggregate of approximately 149,000 square feet of floor space.
Through consolidated subsidiaries, A&E also owns seven international manufacturing and/or distribution
facilities with an aggregate of approximately 794,000 square feet of floor space. A&E also leases another 24
international manufacturing and/or distribution facilities with an aggregate of approximately 613,000 square
feet of floor space. The foreign consolidated subsidiaries engaged in manufacturing have a dyeing production
capacity of approximately 22,450,000 pounds per year. Capacities are based on 168 hours of operations per
week. In addition to its consolidated subsidiaries, A&E also has minority interests in various joint ventures and
a 50% ownership interest in a joint venture in China.
The Company believes its facilities and those of its operating subsidiaries are adequate for its current
operations and expected growth for the foreseeable future.
Item 3. Legal Proceedings
The Company and its subsidiaries are involved in various legal matters from time to time in connection with
their operations, including various lawsuits and patent and environmental matters. These matters considered
in the aggregate have not had, nor does the Company expect them to have, a material effect on the Company’s
results of operations, financial position or cash flows.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.