SPRINGFIELD, N.J. — Same-store sales growth slowed and net income decreased at Village Super Markets here during the fourth quarter, and the company expected those trends would continue into the 2010 fiscal year.
The retailer, which operates 26 ShopRite supermarkets in New Jersey and Pennsylvania, posted same-store sales of 4.8% for the fiscal year, but 1.8% in the fourth quarter, which ended July 25. The company attributed slower growth to deflation in certain commodities and “changing consumer behavior due to economic weakness, which has resulted in increased sale item penetration, coupon usage and trading down.”
This shopper behavior continued in August and September, with Village expecting to register same-store sales of 0.25% to 1.25% in the first quarter, and same-store sales of 1% to 3% for all of fiscal 2010. Quarterly net income of $6.68 million was down by 3% compared with the same period in fiscal 2008. Excluding a $708,000 charge for litigation, earnings were up by 7%. Sales of $310.9 million increased by 4.3%, primarily as a result of a new store in Marmora, N.J.
For the fiscal year, Village earned $27.2 million on sales of $1.2 billion. Earnings were up by 21% and sales increased by 7.1%.
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