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Cannibalization, competition ding Fairway Q1 sales

Fairway Group Holdings said Thursday that same-store sales declined by 1.7% in the fiscal first quarter due in part to sales cannibalization from new Fairway stores and the impact of a recent competitive opening.

Jon Springer, Executive Editor

August 7, 2014

1 Min Read

Fairway Group Holdings said Thursday that same-store sales declined by 1.7% in the fiscal first quarter due in part to sales cannibalization from new Fairway stores and the impact of a recent competitive opening.

Total sales for the quarter, which ended June 29, totaled $198.3 million, an increase of 6.2% from the same period a year ago. Net sales growth was attributable to two new stores that opened during the period, offset by the decline in comps. Fairway posted adjusted EBITDA of $11.1 million and a quarterly net loss of $27.9 million.

Officials said sales and adjusted EBITDA were slightly above expectations, while profits as a percent of sales (31%) were lower than anticipated.

About the Author

Jon Springer

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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