Village Super Market’s Adjusted Net Income Surges 93% in Q3
Springfield, N.J.-based Village Super Market Inc., a member of the retailer-owned cooperative Wakefern Food Corp., has reported that its sales for the third quarter, ended April 29, were $529.3 million compared to $502.0 million last year. The company attributes the jump in sales to a 3.4% increase in same-store sales (thanks to price inflation), the opening of new stores and remodels. Same-store digital sales also saw growth, rising 4.8%.
Village Super Market operates a chain of 34 supermarkets in New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners and four Gourmet Garage specialty markets in New York City.
The company revealed its adjusted net income for Q3 was $10.2 million, surging 93% compared to $5.3 million in Q3 of fiscal year 2022.
Its gross profit as a percentage of sales inched up slightly to 28.57% compared to last year’s 28.21% due to increased departmental gross margin percentages and decreased LIFO charges partially offset by increased warehouse assessment charges from Wakefern.
Village Super Market’s operating and administrative expense as a percentage of sales dropped to 24.33% from 27.44%. Adjusted operating and administrative expense as a percentage of sales remained almost unchanged at 24.56%. This remained stable because of lower labor costs and fringe benefits and decreased supply spending partially offset by increased facility costs.
Additionally, the grocer experienced an increase in depreciation and amortization expense in Q3 due to capital expenditures and an increase in interest expense due to higher average outstanding debt balances.
In other news, Village Super Market’s Fairway location in New York City is using facial recognition to catch shoplifters to combat the uptick in organized retail crime.
As reported by the New York Post, Fairway on Broadway and West 74th Street is collecting customers’ personal information — such as eye scans and voice prints — in an effort to stop theft wreaking havoc on the market.
“This technology is helping our stores reduce retail crime, an industry-wide challenge that has increased dramatically over the last few years,” the firm said in a statement. “We have found that this technology — used thoughtfully and in combination with other measures we take to reduce theft — is helping prevent more crime in store.”
The store hung a small sign on its front entrance alerting customers that it “collects, retains, converts, stores or shares” customers’ “biometric information” in an effort to stop repeat crooks. However, some customers say it’s an invasion of privacy akin to “Big Brother.”
Keasbey, N.J.-based retailer cooperative Wakefern comprises more than 40 members that independently own and operate 360-plus supermarkets. The company is No. 29 on The PG 100, Progressive Grocer’s 2023 listing of North America’ s top food and consumables retailers in North America.
