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Village Prepping 1st Bronx ShopRite
Q2 sales, comps rise on renovated stores. Construction of the new store will be supported by the New Markets Tax Credit program.
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Village Super Market Inc., the Springfield, N.J.-based operator of 29 ShopRite stores, is moving ahead on the banner’s first store in New York’s Bronx borough.
The store, expected to open this summer, will mark the first entrance of the ShopRite banner to the Bronx. The address in the Soundview neighborhood was formerly occupied by a Key Food store that closed in October of 2016. The store has since been in the planning stage.
Village said construction of the ShopRite is being supported in part by a New Markets Tax Credit, which allows qualified entities to claim credits against federal taxes for projects that induce capital investment in lower-income communities.
Village is the second-largest member of the Wakefern Food Corp. cooperative, whose members operate ShopRite stores.
In financial results for the fiscal second quarter, Village said sales of $417.4 million improved by 1.8% from the same period a year ago, while same-store sales increased due to sales growth in recently remodeled and expanded stores in Chester and Stirling, N.J.; moderate inflation; and increased promotional spending. These increases during the quarter ended Jan. 27 were partially offset by two competitor store openings.
Earnings of $9.5 million included a $2.7 million non-cash reduction in deferred tax expenses related to the federal tax laws. Excluding that effect, earnings were up 13% from the same period last year.
Gross profit as a percentage of sales decreased slightly to 26.9% in the second quarter, primarily due to decreased patronage dividends from Wakefern, increased promotional spending and decreased departmental gross margin percentages, partially offset by a favorable change in product mix.
Expense as a percentage of sales increased to 23.02% in the second quarter of fiscal 2018 compared to 22.90% in the second quarter of the prior year, due primarily to payroll investments in service departments, training and other initiatives.
