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Weis Markets closes out fiscal year on upside

Home delivery, curbside pickup rollout boosts online sales

Russell Redman

March 15, 2019

2 Min Read
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Weis Markets Inc. said store-level initiatives helped the company finish its 2018 fiscal year with a sales gain, including a jump in online sales.

At the bottom line, the Sunbury, Pa.-based regional grocer cycled through a prior-year income tax benefit from federal tax reform, which resulted in net earnings declines for the fourth quarter and full year.

For the quarter ended Dec. 29, Weis Markets posted net sales of nearly $893 million, a 1% increase from $883.7 million a year earlier. Same-store sales inched up 0.9%.

The retailer attributed the net and comparable-store sales gains to targeted holiday promotions through its loyalty card program, along with improved store-level efficiencies, inventory management and price optimization.

Fourth-quarter net income totaled just over $13.2 million, or 49 cents per share, compared with $26.9 million, or $2.37 per share, a year ago. Weis Markets noted that in 2017 it saw a $49.3 million decrease in deferred income tax due to the enactment of the federal Tax Cuts and Jobs Act, which boosted fourth-quarter and full-year earnings. The 2018 had no such benefit, which accounted for the negative year-over-year comparison, the company said.

"We made significant forward progress in 2018 by driving sales, investing in our store base and information technology and by improving store-level efficiencies. The result was a 9.4% increase in annual operating income and increased comparable-store sales in 2018," Weis Markets Chairman and CEO Jonathan Weis said in a statement.

Related:Weis Markets steps up home delivery with Shipt

“During the year, we also expanded online ordering with in-store pickup and home delivery to 173 stores, which resulted in more than 100,000 orders and a 33.2% increase in online sales,” he added.

The Weis 2 Go click-and-collect service is available at 89 stores, where customers pick up online grocery orders at a designated drive-through area. Weis Markets partners with Shipt for home delivery and now offers the service through 173 stores.

Weis Markets said fiscal 2018 net sales came in at a record $3.51 billion, up 1.2% from $3.47 billion in 2017. Comp-store sales rose 0.7% year over year. Operating income climbed to $83.6 million from $76.4 million.

Full-year net earnings fell to $62.7 million, or $2.33 per share, reflecting the impact of the income tax benefit in fiscal 2017, when net income totaled $98.4 million, or $3.66 per share.

During 2018, Weis Markets opened two new stores, closed five stores and completed expansions/remodels of three locations, finishing the year with 202 supermarkets in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia. Currently, the retailer operates 200 stores after having closed two locations this past January.

Related:Weis Markets equips for omnichannel marketplace

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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