The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, February 16, 1995            TAG: 9502160403
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER 
                                             LENGTH: Short :   44 lines

HILLS AGGRESSIVELY PURSUES ITS SOUTHEAST EXPANSION

Hills Stores Co., the discount retailer that competes with the likes of Kmart and Wal-Mart, is moving forward with an aggressive expansion plan in the Southeast.

``We plan to open up to 15 stores this year and up to 20 in the following years,'' spokesman William Friend said Wednesday.

The Canton, Mass.-based company will open two stores in Hampton Roads next month in former HQ Home Quarters Warehouse locations. Those stores will be in the Chesapeake Crossing Shopping Center on South Military Highway, and the Newport Crossing Shopping Center in Newport News.

No opening dates have been announced for Hills' three other sites in this region: one will be in the Wards Corner shopping center in Norfolk and another in the Lynnhaven shopping center in Virginia Beach.

The company is still negotiating a lease for the fifth store and would not reveal its location. But Hills hopes to debut all five area stores by the year's end.

In addition to Hampton Roads, the company on Wednesday announced plans to expand in central North Carolina.

Hills has signed a lease for an 83,000-square-foot store in Statesville, N.C., in the Signal Hill Mall, and is looking for additional sites in surrounding areas.

``North Carolina is an important step in the growth of Hills, and one we are very excited about,'' said Michael Bozic, president and chief executive officer.

The chain recently opened two stores in the Richmond area and eventually would like to have 15 stores stretching from the state's capital to Virginia Beach.

Hills is a stranger to Hampton Roads but has been in Virginia for decades. Its oldest store, in Christiansburg, opened in 1969.

Hills has 154 stores in 11 states. The discount chain carries a full line of women's, men's and children's apparel, bed and bath products, jewelry and toys. Children's clothing and toys are considered the company's strengths. by CNB