Stater Bros.' Q1 Sales Rise
Stater Bros. Holdings Inc. has reported consolidated sales in the 13 weeks ended Dec. 29, 2013 of $984.0 million, an increase of $15.3 million or 1.58 percent, from the year-ago period’s $968.7 million. Same-store sales grew $13.7 million, or 1.42 percent, for the quarter, compared with last year.
Gross profit margins for the quarter were 26.28 percent of sales, versus the 25.88 percent of sales posted for the year-ago period. The San Bernardino, Calif.-based grocer reported net income quarter of $11.1 million, compared with $5.4 million last year.
Declaring the company to be “pleased” by the company’s quarterly results, “given the extremely competitive environment in Southern California,” Jack H. Brown, Stater Bros.’ chairman, president and CEO, said: “We believe that our sales and customer count growth is due to our 'Valued Customers’' positive response to our ‘Low Price’ marketing strategy of keeping our prices as low as possible during these continued challenging economic times, while continuing to provide our customers the service and value they deserve … During the extended economic downtown, we have sacrificed gross margin by not fully passing on the costs of inflation, which has allowed us to keep our prices low … In addition, in order to continue to invest in our customers, we are constantly looking for opportunities where we can reduce our costs in areas such as improving our shrink or product loss, and improving our efficiencies at both our stores and in our distribution facility.”
Brown added that this strategy over the past few years has aided the company’s sales growth.
Stater Bros., the largest privately owned supermarket chain in Southern California and the largest private employer in both San Bernardino and Riverside counties, operates 167 supermarkets and employs more than 18,000 associates.