Smart & Final Sees Returns in Q3
As it invests more in ecommerce efforts and keeps low operating costs in check, Smart & Final Stores Inc. is seeing returns, with net and same-store sales gains in quarter three of fiscal 2017.
During the period, which ended Oct. 8, net sales grew 4.5 percent to $1,457.4 million. These were driven by a 1.5 percent rise in comps and from the net sales contribution of new stores.
"We've invested to provide customers with digital ordering and delivery platforms to allow for greater flexibility in shopping from our unique, value-oriented assortment,” said David Hirz, president and CEO, Smart & Final Stores. “Looking forward to 2018, we are planning a disciplined approach to capital investment, with more modest unit growth to realize the benefits of the significant investments made in new stores in the last couple of years. As a result, we expect that our debt-to-EBITDA leverage ratio will continue to improve."
For the Smart & Final banner, net sales grew 2.9 percent to reach $1,115.2 million, compared to $1,083.4 million during the same period the previous year. Comps rose 1 percent.
For the Cash & Carry banner, net sales rose 10 percent to hit $342.1 million, compared to $311 million for the same period a year prior. Comps grew 3.4 percent.
During Q3, Commerce, Calif.-based Smart & Final Stores opened one new Smart & Final Extra store and completed two conversions of its legacy Smart & Final stores to the Extra format, including one store relocation. The company also opened two new Cash & Carry stores during the period. As of the quarter’s close, Smart & Final Stores operated 316 stores, including 183 Extra stores, 70 legacy locations and 63 Cash & Carry shops.