ATLANTA -- Harry's Farmers Market, Roswell, Ga., plans to expand outside the metro Atlanta area next year with its fifth megastore, in Nashville, Tenn., and a sixth, in Charlotte, N.C., Robert C. Aldworth, chief financial officer, told shareholders at the company's annual meeting here.
Harry Blazer, president and chief executive officer, said the company is also examining Memphis, Tenn.; Raleigh-Durham, N.C.; and Orlando and Tampa, Fla., as potential markets.
The company also operates two Harry's in a Hurry convenience stores and expects to add a third in the metro area here within the next year.
As reported, the company decided in April not to go forward with plans to test Harry's in-store fresh food units in four Wal-Mart discount stores.
Aldworth told SN the company's capital spending budget for its current fiscal year is $6 million, up from $3.7 million last year.
Harry's spent $2.7 million of that budget in the first quarter ended May 3 with the opening of its fourth megastore in Clayton County, a suburb here.
Aldworth said Harry's has completed a number of initiatives under its previously disclosed restructuring, including securing $11 million in new equity financing and more than $35 million in new bank credit facilities; regrouping operations into retail stores, manufacturing-distribution and administration; hiring vice presidents of human resources, information systems and logistics; and baking and producing food at its manufacturing plant for other companies.
Currently, Harry's is testing its products in one Bi-Lo store here and plans to extend its offerings to another Bi-Lo location.
Blazer declined to say when he expected the company to return to profitability after two years of losses. In the first quarter, Harry's had a loss of $836,000, or 14 cents per share, compared with a loss of $2.3 million, or 37 cents per share, in the same quarter last year.
Sales for the quarter decreased 0.5% to $34.9 million from $35.1 million. Comparable-store sales fell 1.9%, which the company attributed to "intensified competition in the Atlanta market."
