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Weis Markets reports second-quarter sales surge

Regional grocer continues to upgrade store base amid pandemic

Russell Redman

August 6, 2020

3 Min Read
Weis_Markets_storefront.png
Comparable-store sales at Weis Markets jumped over 24% in the second quarter, while online sales soared 243%.Weis Markets

Weis Markets has adapted to “new market conditions” since COVID-19 hit the United States full-force in the spring, Chairman and CEO Jonathan Weis said in reporting fiscal 2020 second-quarter results this week.

The Mid-Atlantic grocer saw net sales jump 23.7% to $1.1 billion for the 13 weeks ended June 27 from nearly $888 million a year earlier. Same-store sales climbed 24.1% year over year, while e-commerce sales through the Weis 2 Go online grocery pickup and delivery service skyrocketed 243%.

Weis_Markets-beer_wine_cafe-display.pngWeis Markets opened a beer and wine café at its Linglestown Road store in Linglestown, Pa., and is now building another café at its Carlisle, Pa., store on East High Street. (Photo: Weis Markets)

The surge in customer demand during the coronavirus pandemic also more than doubled Weis Markets’ second-quarter net earnings. For the period, the company posted net income of $41.5 million, or $1.54 per share, up 102.5% from $20.5 million, or 76 cents per share, a year ago.

“The coronavirus pandemic has altered most aspects of daily life in our seven-state market area, which was impacted by full and partial shutdowns initially and cautious reopenings in June. This has resulted in customers taking an increased number of meals at home, which shifted foodservice demand to food retail,” Weis said in a statement.

Related:Weis Markets ups its digital advertising game

“Our dedicated associates helped us adjust to these new market conditions with accelerated replenishment schedules, strategic procurement and an ongoing commitment to ensuring a safe shopping environment,” he explained. “Their essential work makes this possible. We remain grateful for all that they do.”

The second-quarter sales and earnings boost hoisted results for Weis Markets’ 26-week fiscal 2020 first half. Net sales were up 18.1% to $2.08 billion from $1.76 billion in the prior-year period. Likewise, comparable-store sales grew 18.5%, and e-commerce sales rose 141%.

At the bottom line, first-half net earnings advanced 96% to $68.2 million, or $2.53 per share, from $34.8 million, or $1.29 per share, in the fiscal 2019 half. 

Currently, Weis Markets operates 197 supermarkets in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia, compared with 200 stores a year ago. 

The Sunbury, Pa.-based regional grocer has continued to refresh its store base. In July, the company began remodels of three stores in Frederick, Md. (Old Camptown Road/Route 40, Thomas Johnson Drive and Spring Ridge Parkway), and a store in Shamokin, Pa. Upgrades, which vary by location, include new decor; an expanded pharmacies; bigger frozen departments; organic/natural product stores-within-a-store; new self-checkout lanes; and improved bakery, deli/foodservice and dairy departments.

Related:Weis Markets extends store hours, restarts some services

“These projects, which we plan to complete in the fall, will be the supermarket equivalent of a complete makeover,” Ron Bonacci, vice president of advertising and marketing, stated about the Frederick stores. “When we are done, our stores will offer more variety, service and convenience.”

Both the Old Camptown Road/Route 40 and Shamokin stores are two-phase projects, with construction of six-pump fuel stations slated to begin after completion of the first phase.

“We just started our remodel and hope to complete it in the fall,” Bonacci commented about the Shamokin remodel. “We also look forward to starting work on our fuel center in 2021, which will offer greater convenience to our customers.”

In early July, Weis Markets opened a beer and wine café at its Linglestown Road store in Linglestown, Pa., and announced plans to build another café at its Carlisle, Pa., store on East High Street.

The Linglestown café sells 400 varieties of beer and 540 domestic and imported wines. construction of the Carlisle café started later in July and is expected to be finished in September.

For our most up-to-date coverage, visit the coronavirus homepage.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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