SPRINGFIELD, N.J. — ShopRite operator Village Super Market here said profits declined in the recently ended first quarter amid higher promotional spending and flat same-store sales.
For the quarter ending Oct. 30, net income was down 13%, to $3.93 million, while total sales were up 1.5%, to $307.4 million. A replacement store in Washington, N.J., was cited for driving the sales gain.
Gross profit as a percentage of sales decreased to 26.3%, vs. 26.6% in the first quarter of a year ago.
Village attributed the decline to higher promotional spending and increased warehouse assessment charges from Wakefern, partially offset by higher patronage dividends.
The company, which operates 26 ShopRites in New Jersey and Pennsylvania, projected same-store sales gains of up to 0% to 2% for the current fiscal year.
"Sales continue to be impacted by changing consumer behavior due to economic weakness, which has resulted in increased coupon usage, sale item penetration and trading down," Village said in a prepared release.