DAIRY SALE IMPACTS STATER RESULTS
SAN BERNARDINO, Calif. — The sale of Stater Bros.' milk plant contributed to lower overall sales but higher net income during the fiscal first quarter, the retailer here said last week. For the quarter that ended Dec. 27, supermarket sales declined by 1.1% and comparable-store sales fell 2.2%, reflecting cautious consumer spending, Stater said. Consolidated sales of $959.3 million declined by 3.6% from the same period a year ago, with the sale of the milk plant to Dean Foods, which took place during the quarter, accounting for the majority of the sales decline. The sale produced an after-tax gain of $4.7 million, as quarterly net income increased 91.4% to $6.7 million.
WEIS MARKETS' EARNINGS DIP IN Q4
SUNBURY, Pa. — Cautious shoppers and product price deflation caused net earnings to fall by 8.8% during the fourth quarter for Weis Markets, the retailer said. For the 13-week quarter that ended Dec. 26, Weis reported sales of $671.4 million — an 8.4% increase — and comparable-store sales gains of 1.9%. Net earnings of $15.5 million were down from $17 million in the same period last year, and earnings per share of 58 cents fell short of analyst estimates of 65 cents. For the fiscal year, Weis recorded net income of $62.8 million on sales of $2.5 billion. Earnings were up by 33.6% for the year and sales climbed by 3.9%. Comps for the year were up 1.8%.
KROGER, GEORGIA WORKERS AGREE
CINCINNATI — Kroger Co. and its union employees in Atlanta and Savannah, Ga., have reached tentative agreement on new contracts, the retailer here said. The agreements cover more than 19,500 workers at 165 stores in Atlanta and 12 stores in Savannah. The company did not disclose details of the new contract, pending a membership vote of United Food and Commercial Workers Local 1996, which represents the workers.
H-E-B KICKS OFF NEW AD CAMPAIGN
SAN ANTONIO — Super Bowl viewers in Texas saw the first spots from a new advertising campaign by H.E. Butt Grocery Co. here. The new ads reinforce H-E-B's commitment to helping customers save money, the company said, building on its “No Store Does More for Less” message. One spot features Scott McClelland, H-E-B's Houston division president, explaining that customers do not need a discount card to get the store's best prices. A second ad shows children during a day of activity, underscoring H-E-B's value to families with kids.
BROOKSHIRE PLANS NEW FRESH STORE
TYLER, Texas — Brookshire Grocery Co. said last week it would begin construction this month on a new prototype supermarket called “Fresh by Brookshire's,” which will focus on freshly prepared foods “in a more interactive environment than traditional grocery stores.” The 55,000-square-foot store, slated to open in South Tyler late this year, will include a full burrito bar, a sandwich bar and a soup and salad bar, in addition to expanded health and wellness items, a pharmacy, a coffee and gelato bar, organic offerings and bulk foods. The store is designed to “amaze and delight foodies,” Brookshire's said. “With this store, we will strive to educate our customers and fuel their passion for food,” said Rick Rayford, Brookshire Grocery Co. president and chief executive officer. “The open-concept food-preparation area will be viewable by customers so that they can engage with our culinary team and not only feel good about the foods they buy, but also be inspired to prepare the recipes themselves.