CHARLOTTE, N.C. -- Ruddick Corp. here said the addition of one new store and five remodelings boosted sales at Harris Teeter, its supermarket subsidiary, for the first quarter ended Dec. 28.
e older store.
The company said it anticipates opening six new stores during the balance of the fiscal year, and it will continue to evaluate its existing store base with the possibility of divesting or closing older or underperforming stores.
Operating profit at Harris Teeter increased 15.1% to $25.8 million. The company said it achieved operating and margin improvements primarily through the continued growth in sales, while effective cost controls continued to offset additional promotional spending designed to drive sales.
"Our focus on providing our customers with a superior shopping experience in terms of value, quality and customer service continues to pay off," said Thomas W. Dickson, president and chief executive officer of Ruddick. "We have experienced positive results from our expanded private-label program for produce, the Harris Teeter Farmers Market, and we intend to continue to build upon this and our other similar programs."
Ruddick sales for the quarter rose 2.1% to $692.4 million and net income rose 6.2% to $13.8 million.
Harris Teeter accounted for 90% of Ruddick's sales during the quarter, with the balance coming from American & Efird, a sewing thread manufacturer. A&E sales for the quarter fell 4.1% to $70.6 million and operating profit fell 54% to $969,000.
