SPRINGFIELD, N.J. — Village Super Market here on Wednesday said sales and profits increased for the fiscal second quarter despite losing money on its two new stores in Maryland.
Village said it is investing to build brand awareness at the two former SuperFresh stores it acquired from A&P last summer and subsequently converted to the ShopRite banner. Sales at those locations have been less than expected, the company said.
Despite those struggles, Village said sales for the period ending Jan. 28 increased by 9.9% to $362.6 million, and same-store sales increased by 6%. Net income rose by 38% to $9.1 million.
Village said it benefited as a result of competitor closures during the period as well as from strong sales at new stores in Washington, N.J., and Mamora, N.J.
Village said it anticipated sales for the fiscal year would increase by 6.5%, but that sales would likely show smaller increases in the second half of the year as the effect of competitive closures moderates.
Village also last week announced that it had acquired the store fixtures, lease and other assets of the ShopRite of Old Bridge, N.J. for $3.25 million, as well as inventory and other working capital, for $1.1 million. That store was formerly owned by Shakoor Supermarkets, whose president, Charlie Shakoor, has retired, a ShopRite spokeswoman said. The acquisition grows Village to 28 stores in three states.