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Private Brand Price Cuts Drive Results at Weis in Q3
CEO cites improved merchandising, marketing and in-store execution for strong performance. The retailer said comps grew in excess of sales in the period as marketing, merchandising and loyalty efforts took hold.
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Weis said comps grew in excess of sales in the period as marketing, merchandising and loyalty efforts took hold.Photograph: Shutterstock
Price reductions on private brand items through its new Low, Low Price program helped Weis Markets grow comps in excess of revenue during its fiscal third quarter.
The Sunbury, Pa.-based retailer said sales for the period ending Sept. 28 increased by 0.8% to $876.2 million, with nonfuel comps improving by 1.7%. Gross margin as a percent of sales in the quarter decreased to 26.6% from 26.7% in the same period last year. Net earnings of $14.2 million increased by 0.8%, and earnings per share were flat at 53 cents.
Weis earlier this year introduced its Low, Low Price program with the intention of establishing the lowest market prices for about 7,000 items in Weis’ private brand line. Sales in the quarter also benefited from targeted loyalty marketing programs, varied promotions and advertising in key markets throughout its six-state footprint.
“Our merchandising and marketing programs along with improved in-store execution continue to drive our sales growth, which sustains our capital investments,” Weis Markets Chairman and CEO Jonathan Weis said in a release.
For the 39-week year-to-date period, Weis has recorded sales of $2.6 billion, net income of $49.1 million and comp sales of 1.5%.
