COLTON, Calif. — Stater Bros. Markets here is experiencing slight sales gains — estimated at 2% or less — as a result of perceived consumer anxiety over a possible work stoppage at other companies by the retail clerks, Jack Brown, chairman and chief executive officer, said here yesterday. Referring to the 141-day strike-lockout that occurred in late 2003 and early 2004, Brown said, “Last time, people weren’t prepared, but even our own people have been filling their pantries a bit over the last several weeks with the products they like, and that’s given us a slight gain in sales.” Representatives for seven locals of United Food and Commercial Workers Union broke off contract negotiations Tuesday after the three employers offered what the union termed “unacceptable demands that would lead to further erosion of health benefits and wages.” Even without any disruptions in normal shopping patters, Brown said Stater anticipates sales will pick up during the current quarter after the company concentrated on boosting gross margin and operating cash flow during the second quarter ended March 25. Net income benefited from the gross margin increases, soaring 227.7% to $13.5 million for the 13-week quarter and 147.7% to $23.4 million for the half, while sales rose 0.3% to $866.1 million in the quarter — which had one less sales day than the prior year because of how Christmas Day fell — and 2.3% to $39.5 million for the year to date. Comparable-store sales, adjusted for $12.1 million of sales on Christmas Day, rose 1.5% for the quarter and also for the six-month period.
