SALES FUELED BY MARKETING PROGRAMS, SAYS INGLES

ASHEVILLE, N.C. -- Ingles Markets here said last week sales increased and earnings declined for the first quarter ended Dec. 30.

e increases to a pair of marketing programs -- a cash giveaway and a loyalty card program in which the company donated money for school supplies based on electronic card usage -- and ongoing store upgrades.

Net income for the quarter fell 9.1% to $4.5 million, which the company said was due to increased labor and fuel costs and higher interest expenses. The company also said earnings before interest, taxes, depreciation and amortization rose 3.9% to $29.3 million.

According to Robert P. Ingle, chairman and chief executive officer, "Our marketing programs, combined with product mix strategies and capital improvements to our store base, have resulted in sales and margin growth. [But] the cost of payroll in a tight labor market and escalating fuel costs, as well as the cost of funding our store improvement program, had an impact on our earnings for the quarter."

Ingles operates 209 stores. During the quarter it said it spent $16.9 million to open one new store and a replacement store and to complete two minor remodelings.