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Six Sigma Contributes to Albertson’s Profit Growth

Quality Digest
Tue, 06/14/2005 - 22:00
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Albertson’s Inc. recently attributed Six Sigma as one of the causes to its significant profit increases for the first quarter of 2005. The company reported net earnings from continuing operations rose 93 percent to $107 billion, compared to $56 million in the first quarter of last year. Total sales grew 16 percent to $10 billion, compared to $8.6 billion in last year’s first quarter. Along with its Six Sigma effort, Albertson’s credits the growth to the acquisition of Shaw’s, a new store expansion and several nationally coordinated merchandising efforts.

The number of Six Sigma Black Belts rose to nearly 100 in the first quarter of 2005. There are currently 178 Six Sigma projects underway, providing the potential for significant process improvement and cost savings in the future. In addition, Albertson’s is continuing radio frequency identification testing to gauge its benefits for supply chain optimization.

Albertson’s is one of the world’s largest food and drug retailers. Its divisions and subsidiaries operate approximately 2,500 stores in 37 U.S. states and employ 240,000 people. Its banners include Acme, Shaw’s, Jewel-Osco, Sav-On Drugs, Osco Drug, Bristol Farms and Star Market.

For more information, visit www.albertsons.com.

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