Weis Markets can't keep comp streak alive
Mid-Atlantic food retailer Weis Markets snapped a 16-quarter streak of same store sales increases during its second quarter.
After reporting its 16th consecutive quarter of comparable store sales increases in May, Weis Markets reported that its second quarter same store sales decreased 0.3%. The company blamed the decrease on the 2018 Easter sales week falling on the last week of the first quarter.
Net sales totaled $871.1 million compared to $876.6 million for the same period in 2017. The company's second quarter net income increased 3.4 percent to $19.1 million compared to $18.5 million in 2017 while second quarter earnings per share increased $0.02 to $0.71 per share.
The company also said sales were negatively impacted by the timing of the fourth of July holiday, which fell later in the week following the conclusion of the second quarter. Management estimates the incremental sales impact of the holiday shifts was approximately $12.5 million, which is reflected in its adjusted second quarter comparable store sales.
For the 26-week period ending June 30, 2018, the company's sales increased 1.1 percent to $1.7 billion compared to the same period in 2017 while comparable store sales increased 0.7 percent. Year-to-date income increased 16.4 percent to $35.3 million while earnings per share for the same period increased $0.18 to $1.31 per share.
Weis Markets has been focused on improving the omnichannel value proposition of its stores by investing in high-performance wireless infrastructure in all of its stores.
The Aruba network is preparing Weis Markets for its future IT initiatives, as well. The grocer plans to adopt analytics software that will help uncover customer habits to better respond to customer needs and, ultimately, drive increased sales. In addition, Weis will evaluate the use of push notifications to send relevant coupons and offers to customers who authenticate to the network.
Other future initiatives might include digital product pricing on shelves, asset tracking for grocery carts, and even robots for in-store cleanups.
Founded in 1912, Weis Markets, Inc. is a Mid Atlantic food retailer operating 206 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia.