Weis Markets in a release last week said it planned around $90 million in capital expenditures during its fiscal year, a figure that would dial back last year’s planned spending by more than 35%.
Weis had an extraordinary year for investments in 2016, where in addition to planned capital spending of around $140 million, it made several acquisitions led by five Mars Super Market stores and 38 Food Lion locations.
As a result, cap-ex as a percentage of sales at Weis jumped to 7% in 2016 vs. historical levels of around 3%. This year’s planned figures indicate Weis plans spending of about 3% of sales.
Weis’ 2017 budget includes 14 remodels, a new unit in Brunswick, Md., two fuel centers and the continued expansion of its distribution center in Milton, Pa., CEO Jonathan Weis said at the company’s annual meeting last week. “We also have seven new stores in the active planning stages and expect most of them to open in 2018.”
Weis last year planned 20 remodels, three new stores, three fuel centers and technology investments.
The 44 stores acquired last year by Weis have been converted to the Weis Markets banner, growing the company to 204 stores and helping to increase total sales by 6.9% to $3.1 billion in 2016. Weis also drove 2.9% comparable-store sales in 2016.