107681--8/25/2008--WINN_DIXIE_STORES_INC

related topics
{financial, litigation, operation}
{cost, regulation, environmental}
{system, service, information}
{competitive, industry, competition}
{tax, income, asset}
{cost, operation, labor}
{gas, price, oil}
{operation, natural, condition}
{personnel, key, retain}
{loss, insurance, financial}
Failure to sustain the store remodel initiative and maintain post-remodel execution of our strategic initiatives could adversely affect our financial condition and results of operations. In the current inflationary environment if we cannot pass on rising product and energy costs while maintaining gross margin rates, our results of operations would be adversely affected. To achieve levels of profitability consistent with most of our industry peers will require us to significantly increase our average sales-per-store. We operate in a highly competitive industry and actions taken by our competitors can negatively impact our results of operations. If we do not maintain the security of customer-related information, we could damage our reputation with customers, incur substantial additional costs and become subject to litigation. Food safety issues could negatively impact our brand image, operations and financial results. Unsuccessful implementation of new information technology or related changes in business processes could limit our ability to operate efficiently and compete effectively. Failure to attract, train and retain qualified associates could adversely affect our ability to carry out strategic initiatives and ultimately impact our financial performance. The concentration of our locations in the southeast increases our vulnerability to severe storm damage, which could adversely affect our operations and financial results. Our net operating loss carryforwards may be limited. Variability in self-insurance liability estimates could significantly impact our financial results. Litigation or legal proceedings could expose us to significant liabilities and thus negatively affect our financial results. Changes in laws and other regulations affecting our industry could increase our compliance costs.

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