Weis Boosts Cap Ex 7%
Weis Markets is increasing its 2011 capital expenditure budget by 7 percent to $110 million.
Vice Chairman Jonathan H. Weis made the announcement at the company’s annual shareholder meeting this week at its headquarters in Sunbury, Pa., at which he briefed shareholders on the company’s current plans and its 2010 results. The current budget includes 14 major remodels, two additions and three new or replacement stores in Pennsylvania. Weis is currently building a replacement unit near Reading, a new unit near Easton and a replacement unit near State College.
“We’ve significantly increased the pace and tempo of our growth,” Weis said. “Over the past two years, we’ve averaged 15 major projects – triple what we were doing a couple of years ago – and our cap ex budget has increased by nearly 35 percent during this period. We continue to reinvest in our stores, information technology systems and human capital at an unprecedented rate.”
“This marks our ninth consecutive quarter of strong operating results,” said David J. Hepfinger, Weis Markets president and CEO. “Over the past two years, our earnings have increased 28 percent and our rate of sales is up 18 percent.”
Hepfinger said the company would continue to increase its technology investments, which totals $25 million in recent years.
“While we will continue to make major investments in our store base, our growth will be based on more than just bricks and mortar,” Hepfinger said. “Effective Information technology systems are essential to our growth and success. We are determined to give our associates the tools and analytics they need to do better serve the needs of our business and our customers.”
Founded in 1912, Weis Markets currently operates 162 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia.