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Sales Up, Comps Dip for Village in Q4

Competitive openings and higher expenses offset new store sales boost
ShopRite store exterior
Photograph courtesy Village Super Market

While sales and margins increased, higher expenses and competitive openings hurt profits and same-store sales in the fiscal fourth quarter for Village Super Market Inc., a ShopRite operator based in Springfield, N.J.

Village’s new store in the Bronx, which opened in June, helped to increase the company’s overall sales by 0.7% to $413.6 million for the quarter, which ended July 28. Comparable-store sales in the period dipped by 0.3%, owing to competitive openings against two of Village’s other stores.

Net income of $6 million, adjusted for one-time items, dipped by 6% primarily due to higher operating and administrative expenses, partially offset by decreased taxes, Village said.

Operating and administrative expenses as a percentage of sales increased to 23.8% in the fourth quarter from 23% in the same period last year, primarily due to payroll investments, external consulting fees, preopening costs, warehouse assessments and increased worker compensation claims.  

Gross profit as a percentage of sales increased to 27.56% compared to 27.39% in the fourth quarter of fiscal 2017 due primarily to increased departmental gross margin percentages (0.11%) and more favorable product mix (0.03%).

For the fiscal year, Village's posted net income was $25.1 million on sales of $1.6 billion. Adjusted for one-time events, earnings were down by 2% on the year, while sales were up by 0.4% and same-store sales increased by 0.2%. The same-store fiscal year sales increase was slightly better than the flat sales anticipated when Village announced first-quarter results in December.

Village Super Market operates a chain of 30 supermarkets under the ShopRite name in New Jersey, Maryland, northeastern Pennsylvania and New York City.

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