Weis Markets Inc. plans new stores and a spate of remodels as part of $101 million in capital expenditures budgeted for fiscal 2018.
Also this year, the Mid-Atlantic supermarket chain plans to pilot online grocery delivery, which would build on its current click-and-collect service.
Chairman and CEO Jonathan Weis unveiled the plan, which also includes supply chain enhancements and IT upgrades, during the company’s annual shareholder meeting at its Sunbury, Pa., headquarters.
“This is a disciplined program that is designed to produce long-term benefits. It includes two new stores — a unit in Nottingham, Md., near Baltimore, which opened two weeks ago, and a store in Randolph, N.J., which will open later this summer,” Weis told shareholders. “We also plan 20 remodels, a fuel center and four new pharmacies.”
The Weis 2 Go service, which offers curbside pickup of groceries ordered online, has continued to grow, he noted. The grocery chain recently rolled out the service to 25 more stores, and it’s currently available at 79 locations.
“In 2018, we will also test an online ordering delivery service,” Weis said. “While we are a brick-and-mortar operator, we know there is a market for these services. We are in the business of constantly offering our customers more choices and options.”
Last year, Weis Markets saw sales rise 10.5% year over year to $3.5 billion, while net income and earnings per share grew by double digits. Weis said the company’s fiscal 2017 cash flow benefited significantly from the Tax Cuts and Jobs Act, and the retailer plans to reinvest tax savings into expansion and development initiatives. The company reported a $49.3 million decrease in deferred income tax for 2017 due to federal tax reform.
“We will use these savings to strengthen our company’s long-term prospects,” he said. “This reduction has helped us make major — and continuing — investments in associate training and career development. It has allowed us to increase our cap-ex spending to more than $100 million while simultaneously paying down our banking line of credit. It also provides additional resources for potential acquisition opportunities.”
In 2017, Weis Markets integrated 44 acquired stores, including 38 locations in Maryland, Virginia and Delaware purchased from Food Lion. Weis currently operates 206 stores in Pennsylvania, Maryland, New Jersey, Delaware New York, Virginia and West Virginia.
