Payless Gashways Expects Growth Despite More Closures

Payless Cashways, Inc. is closing five more stores, while vowing that the chain will "begin to grow again" in 1999.

Stores in South Oklahoma City, Ok.; White Settlement and East Garland, Tx.; Bellevue, Ne., and Billings, Mt., are being liquidated. The company operates other locations in all markets except Billings which should be able to continue serving the shuttered units' professional customers.

Payless Cashways has set this year's capital budget at approximately $60 million, including $19 million for expansion (such as retail or manufacturing facility acquisitions, remodels and/or new locations). The chain will spend $14 million to purchase 10 previously leased stores and $7 million on technology improvements.

Recent operating results suggest that the chain may have turned the corner, enjoying its third consecutive quarter in the black. Fourth quarter 1998 profit reached $2.5 million, com-

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Net sales during fourth quarter 1998 fell 4.2Vo to $483.2 million, reflecting a slight drop in same-store sales and the closure of six stores during the year. The decrease in samestore sales slowed to l.l%o in the fourth quarter, from a 6.7Vo decrease in the third quarter and a l3.2Vo in the second.

During the latest quarter, samestore sales to professsionals rose 97o.

Based in Kansas City, Mo., the company operates 159 stores under the names Payless Cashways, Furrow, Lumberjack, Hugh M. Woods, Knox Lumber and Contractor Supply stores in 19 states.

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