Newswatch 2010-07-19

WEIS Q2 EARNINGS JUMP; COMPS FLAT

SUNBURY, Pa. — Improved efficiency and store productivity helped Weis Markets improve its second-quarter profits by 34.9% despite flat same-store sales, the company here said last week. Overall sales for the quarter that ended June 26 increased 6.2% to $653.7 million, with net earnings of $20.5 million increasing from $15.2 million in the same period last year. For the 26 weeks of the fiscal year to date, earnings were up 19.4% to $37.9 million, on sales of $1.3 billion, a 7.9% increase. “It is clear the economy continues to be a major concern for our customers, who continue to be extremely cautious in their spending,” David Hepfinger, Weis' president and chief executive officer, said in a statement.

COUCHE-TARD EXTENDS CASEY'S OFFER

ANKENY, Iowa — Alimentation Couche-Tard last week said it would extend its tender offer for convenience chain Casey's General Stores here, noting that its effort through July 9 had garnered 19% of the stock. Casey's subsequently reiterated its call to reject the advances, saying the tepid response to the offer thus far reflects its belief that the takeover offer is “inadequate.” The tender offer will now expire on Aug. 6.

GROCERS SUPPLY JOINS TOPCO CO-OP

HOUSTON — Grocers Supply Co. here has become a member of private-label cooperative Topco Associates, the companies said. Grocers Supply, which services grocery stores in four states and exports goods worldwide, will participate in Topco's dairy/bakery, health and beauty/general merchandise, pharmacy, processed meat, produce/floral, fresh meat and not-for-resale programs, according to Skokie, Ill.-based Topco.

AWG OFFERS NEW LOYALTY PLATFORM

KANSAS CITY, Kan. — Associated Wholesale Grocers here has partnered with San Francisco-based marketing company You Technology to offer AWG members new loyalty marketing and paperless coupon programs, the companies said. AWG member stores that leverage the full You Technology marketing platform could benefit from point-of-sale integration to power loyalty programs, paperless coupon solutions, promotion support and richer shopper behavioral analysis, according to You. AWG serves more than 1,900 stores in 23 states.

LOBLAW WORKERS APPROVE STRIKE

TORONTO — Four union locals have authorized strikes against Loblaw Cos. in a move they hope will pressure the retailer to improve its contract proposal. United Food and Commercial Workers Canada Locals 1977, 1000A, 175 and 633 represent nearly 30,000 workers at Loblaw-owned stores in Ontario. In a joint statement last week, they said they were “angry” at Loblaw, which they say has not improved a contract offer calling for wage cuts of up to 25% and reductions in benefits. “Unless Loblaw adopts a more reasonable position, a strike may be inevitable,” the union said. Negotiations resume this week with a provincial mediator.

TARGET SELLS DEBT, GETS UPGRADE

MINNEAPOLIS — Target Corp. said last week it sold $1 billion in 10-year notes priced at 3.91%. New York-based Moody's Investors Service said it upped its rating on the retailer to stable, from negative, citing the positive impact on Target's credit metrics of improving retail operations. “Target has used its growing food business to drive additional foot traffic to its stores,” said a Moody's analyst in a report.