Village Q2 results slide on deflation, competition

Deflation, competitive openings and effects of lapping a sales-building winter storm resulted in declining quarterly sales, comps and earnings for Village Super Market, the ShopRite operator reported Wednesday.

For Village’s fiscal second quarter, which ended Jan. 28, sales of $412.2 million declined by 1.9% from the same period last year and comparable-store sales also slipped by 1.9%. Village said the sales were negatively impacted by deflation in the meat, dairy and produce departments, by four competitive store openings, and by “very high sales” in the last week of last year’s second quarter as shoppers prepared for winter storm Jonas.

Those effects were partially offset by three competitive closures and by increasing sales at remodeled stores in Stirling and Chester, N.J.

The same-store sales decrease, along with increased expenses triggered a 5% decline in net earnings to $6 million in the quarter. Gross profit as a percentage of sales increased to 26.99% in the quarter, up slightly from the prior period.

For the six months to date, sales of $802 million is down 1% from the same period last year while earnings of $10.1 million is down by 6%.

Village said it expected same-store sales in the range of flat to positive 1% in the current fiscal year.

Village operates 29 supermarkets under the ShopRite banner in New Jersey, Pennsylvania and Maryland.