Ingles Markets surges in Q4
Ingles Markets is showing other food retailers that you don't need to have a lot of apps or online delivery services to drive customer traffic.
The North Carolina-based grocery chain posted a 3.6% comp increase for the fourth quarter ended Sept. 30. Total sales for the fourth quarter were $1.09 billion compared with $962.4 million for the fourth quarter of fiscal 2016. Net income for the fourth quarter of fiscal 2017 totaled $19.4 million, compared with net income of $14.2 million for the fourth quarter of fiscal 2016.
Ingles has been reluctant to embrace digital initiatives, even as the food retail industry gravitates towards online grocery sales/delivery and as consumers move away from “one-stop” shopping of large grocery stores and begin to frequent multiple, many times smaller stores.
But so far, the strategy at Ingles seems to be working.
“Our company achieved strong results due to the hard work and dedication of our associates. We will continue to bring our customers products they desire and flawless service in our stores,” said Robert P. Ingle II, Chairman of the Board.
Total sales were $4 billion for fiscal year 2017 compared with $3.79 billion in fiscal year 2016. For the fiscal years ended September 2017 and 2016, net income totaled $53.9 million in 2017 compared with $54.2 million in 2016.
Gross profit for the fourth quarter of fiscal 2017 increased to $261.3 million, compared with $237.2 million for the fourth quarter of fiscal 2016. Gross profit as a percentage of sales was 24% and 24.7% for the 2017 and 2016 fourth quarters, respectively.
During fiscal 2017, the company opened two new store buildings and closed four stores, one of which is being rebuilt and will reopen this month. The company’s other store improvement capital projects in fiscal 2017 focused on improved merchandising, convenience and the range of products offered to our customers.