MILWAUKEE -- Roundy's here said last week it plans to open its first urban store Tuesday in the downtown area here that could serve as a model for other similar units elsewhere.
eat food, though it will have a full assortment of products and a pharmacy. The 53,400-square-foot store is a former Kohl's location.
If the urban format is successful, Mariano said, "there are a fair amount of opportunities [for similar stores] in other markets."
Mariano made his remarks during a conference call with industry analysts to discuss financial results for the second quarter and 26 weeks ended July 3. Net sales and service fees rose 25.6% to $1.3 billion for the 13-week quarter and 28.1% to $2.4 billion for the half, while net income rose 4.2% to $15 million for the quarter and 11.9% to $30.4 million for the year to date.
Retail sales climbed 44.3% to $768 million for the quarter, including $195.7 million from four acquired store groups, totaling 44 stores, that were added since the prior year. For the six-month period, retail sales rose 49.8% to $1.5 billion, including $435.2 million from 54 acquired stores. Same-store sales rose 3.9% during the quarter and 2.8% for the 26-week period.
Wholesale sales rose 13.7% to $882.5 million for the quarter and 15.8% to $1.7 billion for the year to date, which the company said was due to increased sales to company-owned stores and sales to new independent customers, most of whom were formerly supplied by Fleming.
In other conference call highlights:
Darren Karst, executive vice president and chief financial officer, said most of the licensed Pick 'n Save stores that were potentially for sale have already been acquired by the company. One seven-store group remains, plus a limited number of one- and two-store groups.
As previously reported, Karst said the company expects to close distribution centers in Eldorado, Ill., and Evansville, Ind., during the fourth quarter and transfer a portion of those warehouses' business to its Lima, Ohio, facility. Roundy's chose to transfer only a portion of the business to the Lima DC "because some customers were just too far from Lima for us to operate profitably," he said. Roundy's owns both facilities, which will be put up for sale once they are closed, Karst noted.
