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Weis Markets’ Q2 sales dip after cycling pandemic-driven gains

Regional grocer reports two-year same-store sales growth of over 18%

Russell Redman

August 3, 2021

3 Min Read
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Comp-store sales fell 5.8% year over year but were up 18.3% on a two-year stacked basis, Weis Markets said.Weis Markets

Net and comparable-store sales declined at Weis Markets in the fiscal 2021 second quarter and first half as the regional grocer lapped double-digit gains a year ago fueled by the COVID-19 pandemic.

For the quarter ended June 26, net sales fell 4.7% to $1.05 billion from $1.1 billion a year earlier, Sunbury, Pa.-based Weis Markets reported after yesterday’s market close. Comp-store sales decreased 5.8% year over year but were up 18.3% on a two-year stacked basis, the retailer noted. Excluding fuel, same-store sales were down 7.7% year over year and up 18.7% over two years.

“We remain extremely proud of our associates who continue to serve our customers and effectively operate in an unprecedented business environment. Our 2021 second-quarter results, in absolute terms of sales volume and operating income, were the second-highest in our company’s history, exceeded only by our 2020 second-quarter results,” Chairman, President and CEO Jonathan Weis said in a statement. “This positive momentum enables us to make prudent reinvestments for long-term profitable growth, which benefits our associates, customers, communities and shareholders.”

In the fiscal 2020 second quarter, Weis Markets’ net sales jumped 23.7% to $1.1 billion, while comp-store sales climbed 24.1% year over year. E-commerce sales through the Weis 2 Go online grocery pickup and delivery service surged by 243%. The chain didn’t report fiscal 2021 second-quarter e-commerce sales growth.

Related:Weis Markets taps Terry Wallace to lead supply chain, logistics

“Our 2020 second-quarter results reflected a time when consumption of food prepared away from home was strictly limited, which resulted in record sales volume throughout the entire quarter for our essential food retailing business,” Weis noted. “During this period, our team rose to the challenge and helped us become a more efficient and nimble company.”

First-half 2021 net sales totaled $2.05 billion, dipping 1.5% from $2.08 billion a year ago. Same-store sales declined 2.4% year over year (-3.6% excluding fuel) but gained 16.1% (also 16% excluding fuel) on a two-year basis.

At the bottom line, Weis Markets posted 2021 second-quarter net earnings of nearly $33.5 million, or $1.24 per share, compared with almost $41.5 million, or $1.54 per share, in the 2020 quarter, when net income and earnings per share had more than doubled.

Year-to-date net income came in at $57.7 million, or $2.15 per share, versus $68.2 million, or $2.53 per share, in the 2020 first half. Last year’s 26-week period saw net earnings nearly double overall and on a per-share basis.

Related:Weis Markets expands footprint in Pennsylvania’s Lehigh Valley

During the 2021 second quarter, Weis Markets opened replacement stores in Gap, Macungie and Bethlehem, Pa. The upgraded stores are part of a $135 million capital expenditures program announced in the spring. Investments range from new stores and  remodels, new fuel centers, IT upgrades and over 1,000 smaller store-improvement projects.

Last week, the grocer said a renovation is now under way at its store in Lewisburg, Pa. The remodel includes an updated look and feel, a bigger assortment, a drive-up pharmacy and checkout lanes that can be converted to self-scan stations.

“We’ve just started our project and are looking forward to completing it in the fall,” according to Ron Bonacci, vice president of advertisng and marketing at Weis Markets. “When we’re done, our store will have new décor, expanded variety and increased convenience, particularly with our new drive-thru pharmacy.”

Overall, Weis Markets operates 197 supermarkets in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia, the same number of locations as a year ago.

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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