SPRINGFIELD, N.J. — Quarterly net income for Village Super Market here fell by 29%, the retailer said Wednesday, citing low same-store sales growth, tightening margins, product price deflation and increased internal expenses.
Village, which operates 26 stores under the ShopRite banner in New Jersey and Pennsylvania, said its 0.6% increase in same-store sales for the fiscal first quarter, which ended Oct. 24, was impacted by deflation and changing consumer behavior due to economic weakness, resulting in increased coupon usage, higher sale-item penetration and trading down. The company posted a 4.2% same-store sales increase in the same period last year.
For the quarter, Village posted net income of $4.5 million on sales of $302.8 million. Overall sales were up 4.1% compared with the same period last year, due mainly to the opening of a new store in Marmora, N.J. The company said it expected comps of between 1% and 2% for the current fiscal year.
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