SPRINGFIELD, N.J. — ShopRite operator Village Super Market here said Thursday that sales grew 5.2% in the fiscal third quarter, although profits were hit by a one-time charge related to a pension-plan withdrawal liability.
Net income for the 13-week period, which ended April 30, totaled $1.67 million, down 68% after the $4.24 million (after tax) charge. Excluding the charge, net income was $5.91 million, up 13% over year-ago results.
Third-quarter sales were $316.6 million, and same-store sales grew 4.8%. The company attributed the same-store sales gain to improved sales at some stores due to competitor closings and a "substantial" increase in transaction counts. Transaction size remained flat despite inflation, the company said.
"Sales continue to be impacted by changing consumer behavior due to economic weakness, which has resulted in increased sale item penetration and trading down," the company said in a statement.
Through the nine-month span, net income was $12.22 million, down 25.9%, and sales grew 3.8%, to $$953.91 million. Year-to-date, same-store sales were up 2.6% Village said it expects same store sales for fiscal 2011, excluding the impact of the 53rd week in 2010, to increase from 2.5% to 3.5%.
As previously reported Village has bid $6.6 million to purchase three SuperFresh locations in Maryland from A&P. The purchase is expected to close in July and the stores are expected to reopen under the ShopRite banner later this summer.