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Ingles Markets tallies double-digit sales growth in Q1

Net earnings triple as pandemic-fueled gains continue

Russell Redman

February 5, 2021

2 Min Read
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Ingles said grocery comparable-store sales jumped 15.2% year over year, powered by nearly 17% growth in transaction size.Ingles Markets

Regional grocer Ingles Markets topped 10% growth in net sales and 15% in same-store sales for its fiscal 2021 first quarter, with net income tripling versus a year ago.

For the quarter ended Dec. 26, net sales came in at $1.19 billion, up 10.4% from $1.08 billion a year earlier, Asheville, N.C.-based Ingles Markets reported yesterday.

“The COVID-19 pandemic resulted in various stay-at-home measures, as well as the closing of most schools and restaurants beginning in March 2020. Many of these measures were still in place throughout the quarter ended Dec. 26, 2020,” the company stated its 10-Q report filed with the Securities and Exchange Commission. “As a result, retail grocery sales increased substantially.”

Excluding fuel, grocery comparable-store sales jumped 15.2% year over year, with the average transaction size swelling by 16.8% despite a 4.3% decrease in the number of customer transactions.  

“We believe that, because of the COVID-19 pandemic, customers consolidated trips to our stores, resulting in a lower transaction count and a higher spend per visit,” Ingles Markets said in the 10-Q filing.

Among product categories in the first quarter, sales in grocery (grocery, dairy and frozen food) surged 16.9% to $442.1 million. Perishables (meat, produce, deli and bakery) also posted strong sales growth, up 14.4% to $321.3 million. In nonfoods (alcohol, tobacco, pharmacy, and health and beauty aids), sales climbed 13.7% to $279.7 million. Fuel sales fell 20.6% to $110.5 million.

Related:Ingles Markets to grow curbside service with network upgrade

“Gasoline sales dollars and gallons sold were lower due to decreased demand as a result of the COVID-19 pandemic and oversupply,” Ingles Markets reported.  

At the bottom line, first-quarter net earnings totaled $53.8 million, compared with $17.7 million in the 2019 quarter. Basic and diluted earnings per share for Class A common stock were $2.73 and $2.66, respectively, for the 2021 quarter versus 90 cents and 87 cents in the prior-year period. For Class B common stock, basic and diluted EPS were $2.48, up from 82 cents in the 2020 quarter.

Capital expenditures in the first quarter were $34.2 million, compared with $31.1 million in the year-ago period.

“We are pleased with our results, and we all continue to work hard to provide a safe and reliable shopping environment for our associates and customers,” Chairman Robert Ingle said in a statement. “We are also honored to participate in the COVID-19 vaccine distribution.” 

Ingles Markets finished the first quarter with 197 supermarkets in North Carolina, Georgia, South Carolina, Tennessee, Virginia and Alabama versus 198 stores a year earlier. The food and drug retailer also operates 109 in-store pharmacies and 106 fuel centers.

Related:Ingles Markets sees 15% comp-sales growth for 2020

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

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