Cautious consumers in Wisconsin and new competition hurt same store sales for Roundy’s Inc. in the third quarter, according to company officials.
Roundy’s operates banners Pick’n Save, Copps, and Metro Market in Wisconsin, and Mariano’s in Illinois.
Same store sales decreased 2.7% and the number of customer transactions fell by 5.2% in the third quarter that ended Sept. 27. A 2.6% increase in average transaction size kept same store sales from tumbling.
Roundy’s Inc. reported an earnings loss of $283.8 million for the third quarter. New and acquired stores boosted net sales by 16.4% compared to the same quarter last year.
Roundy’s incurred a $247.1 million non-cash goodwill impairment charge during the quarter.
CEO Bob Mariano indicated that the company is focusing on pricing at the Wisconsin banners.
"We achieved and have achieved price competitiveness in the Chicago market. We can achieve it in the Milwaukee market. It will take time, but we can achieve it."
The company now has 29 Mariano’s locations in the Chicago area. Stores that have been around for a year have average weekly sales of $900,000, sai Bob Mariano, and Mariano’s organic stores bring in $1 million per store per week.
“The sales productivity of the acquired stores continues to succeed their pro forma sales targets,” he said.
Roundy’s plans to build up the number of Mariano’s stores to 45 to 50 locations.
“We continue to gain share in the Chicagoland market, and we anticipate continued market share gains throughout 2015.”
Overall perishables sales represented 38.% of sales for the quarter, up from 35.8% the same quarter last year. Roundy’s 7,000 private label offerings represent 24.2% of sales.
During the quarter, Roundy’s left the Twin Cities market entirely by finalizing the sale of al closing of 27 Rainbow stores. To streamline operations, the company also closed its Stevens Point distribution center with one-time closing costs of $1.8 million for the quarter.
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