Roundy’s Announces 4Q Results
Milwaukee-based Roundy’s Inc. reported financial results for the fourth quarter and full year ended January 3, 2015.
Net sales from continuing operations for the fourth quarter of 2014 were $1,075.8 million, an increase of $222.7 million, or 26.1 percent, from $853 million for the fourth quarter of 2013. The increase primarily reflects the benefit of new and acquired stores in Illinois and the impact of an additional week in 2014, partially offset by a decrease in same-store sales.
The additional week in 2014 provided a benefit of approximately $80 million in net sales. Same-store sales from continuing operations declined 2.3 percent, which was due to a 3.7 percent decrease in the number of customer transactions, partially offset by a 1.4 percent increase in average transaction size.
Same-store sales continue to be negatively impacted by competitive store openings in our Wisconsin markets, according to Roundy’s. When asked about the impact of Whole Foods’ aggressive pace of store openings in Mariano’s market, Robert A. Mariano, chairman, president and chief executive officer, Roundy’s, emphasized the difference between the two retailers.
“Let’s be clear about something. Whole Foods is not an analog for Mariano’s,” he said. “Mariano’s is a far more complete shopping experience than Whole Foods. You cannot do your complete shopping trip at a Whole Foods. You can at a Mariano’s.”
For fiscal year 2014, net sales were $3,855.2 million for the 53 weeks ended January 3, 2015, an increase of $502.2 million, or 15 percent, from $3,352.9 million for the 52 weeks ended December 28, 2013.
The increase primarily reflects the benefit of new and acquired stores in Illinois and the impact of an additional week in 2014, partially offset by a decrease in same-store sales. Same-store sales from continuing operations declined 2.9 percent, which was due to a 4.8 percent decrease in the number of customer transactions, partially offset by a 2 percent increase in average transaction size.
“The fourth quarter was also our second consecutive quarter of improved same-store sales. Overall, 2014 was a transition year for the company with our investments in Illinois growth and our transition out of the Twin Cities market. Each successive quarter was another building block in creating a solid foundation for the future,” says Mariano.
Roundy’s mentioned internal projects. In the works are an inventory control project focused on reducing shrink and projects on store operations improvements as well as supply chain. Mariano also reasserted his assessment that there is capacity for 45 to 50 Mariano’s stores in Illinois.