Sponsored By

Ingles Markets’ comparable-store sales rise over 17%

Demand driven by coronavirus lifts first-half comp growth to nearly 10%

Russell Redman

May 7, 2020

2 Min Read
Ingles_store_exterior_shot.jpg
Ingles operates 198 supermarkets in the Carolinas, Georgia, Tennessee, Alabama and Virginia, including 108 in-store pharmacies and 104 fuel centers.Ingles Markets

Both net and same-store sales jumped by double digits at Ingles Markets in the fiscal 2020 second quarter, fueled by heightened consumer demand for groceries amid the coronavirus crisis.

For the quarter ended March 28, net sales rose 14% to $1.14 billion from $1 billion a year earlier, Ingles said Thursday. Retail comparable-store sales climbed 17.5%, excluding fuel sales. 

The sales surge boosted Ingles’ profits for the quarter. Gross profit came in at $291.6 million, or 25.5% of sales, up from $244.3 million, or 24.4% of sales, in the 2019 quarter. 

At the bottom line, net earnings totaled $40.3 million for the first quarter, more than double the $15 million generated a year ago. Diluted earnings per share for Class A common stock was $1.99 for the 2020 quarter versus 74 cents in the prior-year period. Shares of Class B common stock were $1.86 at the quarter’s end, up from 69 cents a year earlier. 

Operating and administrative expenses totaled $228.4 million in the first quarter, compared with $216.5 million for the 2019 quarter. Ingles said higher labor and staffing costs accounted for most of the increase. In early April, the Asheville, N.C.-based grocer  announced plans to hire more than 5,000 additional workers in its supermarkets and distribution center to support current employees and meet extra demands brought by the pandemic.

Related:Ingles Markets to hire over 5,000 workers

“We are very appreciative of all our store and warehouse associates that have continued to serve our customers during the COVID-19 pandemic,” Ingles Markets Chairman Robert Ingle II said in a statement. “We remain focused on our tremendous obligation to provide food and other products during this unprecedented time.” 

Ingles Markets gave no guidance on upcoming fiscal 2020 results. “At this time, the company cannot predict the impact of the pandemic on future periods,” the retailer stated. 

In the fiscal 2020 first half, net sales rose 7.8% to $2.22 billion from $2.06 billion for the year-ago period, with retail comp sales excluding gasoline up 9.7%. Net income totaled $58 million for the six months, compared with $37.2 million in the 2019 first half. 

First-half capital expenditures were $56.8 million, down from $94.2 million a year ago, when Ingles had raised capex for additional new store construction, store remodeling and property acquisitions. The company forecasts full-year capital spending at $120 million to $160 million. 

Ingles operates 198 supermarkets in the Carolinas, Georgia, Tennessee, Alabama and Virginia, including 108 in-store pharmacies and 104 fuel centers. The regional grocer’s operations also include 1.65 million square feet of warehouse and distribution facilities plus a milk processing and packaging plant that supplies its supermarkets and unaffiliated customers.

Related:Ingles Markets keeps sales on the upswing in Q1

For our most up-to-date coverage, visit the coronavirus homepage.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like