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Sales declines at American & Efird
06 Aug '09
5 min read
In addition, Harris Teeter realized a higher percentage of sales of its lower priced store branded products and sales declines in more discretionary categories such as floral, health and beauty, and certain general merchandise during the first three quarters of fiscal 2009.
During the first three quarters of fiscal 2009, Harris Teeter opened 11 new stores, closed 1 existing store (which was replaced by a new store) and completed the major remodeling of 2 stores. Since the third quarter of fiscal 2008, Harris Teeter has opened 14 new stores while closing 2 stores for a net addition of 12 stores. Harris Teeter operated 186 stores at June 28, 2009.
Operating profit at Harris Teeter was $42.8 million (4.44% of sales) for the third quarter of fiscal 2009, as compared to $44.5 million (4.81% of sales) in the third quarter of fiscal 2008. For the 39 weeks ended June 28, 2009, operating profit was $132.1 million (4.65% of sales), as compared to $135.1 million (4.98% of sales) in the prior year period.
Operating profit was impacted by new store pre-opening costs of $4.1 million (0.42% of sales) and $3.7 million (0.40% of sales) in the third quarter of fiscal 2009 and fiscal 2008, respectively. Pre-opening costs for the 39-week periods ended June 28, 2009 and June 29, 2008 were $11.5 million (0.40% of sales) and $11.6 million (0.43% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule and market location.
The decrease in Harris Teeter's operating profit resulted primarily from additional promotional activity designed to provide more value to our customers. The sales increases, along with a continued emphasis on operational efficiencies and cost controls, have provided the leverage to partially offset the additional costs associated with Harris Teeter's increased promotional activity and new store program (pre-opening costs and incremental start-up costs), increased associate benefit costs, credit and debit card fees, and other occupancy costs.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation commented that, “We continue to experience changes in our customers' spending habits and shopping demands during this time of economic uncertainty. Our customers continue to look for value and we remain focused on enhancing the overall value we deliver to our customers while maintaining or increasing our customer base. We continue to make investments in promotional activity, as well as price, to drive customer shopping visits and loyalty.
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During the first three quarters of fiscal 2009, Harris Teeter opened 11 new stores, closed 1 existing store (which was replaced by a new store) and completed the major remodeling of 2 stores. Since the third quarter of fiscal 2008, Harris Teeter has opened 14 new stores while closing 2 stores for a net addition of 12 stores. Harris Teeter operated 186 stores at June 28, 2009.
Operating profit at Harris Teeter was $42.8 million (4.44% of sales) for the third quarter of fiscal 2009, as compared to $44.5 million (4.81% of sales) in the third quarter of fiscal 2008. For the 39 weeks ended June 28, 2009, operating profit was $132.1 million (4.65% of sales), as compared to $135.1 million (4.98% of sales) in the prior year period.
Operating profit was impacted by new store pre-opening costs of $4.1 million (0.42% of sales) and $3.7 million (0.40% of sales) in the third quarter of fiscal 2009 and fiscal 2008, respectively. Pre-opening costs for the 39-week periods ended June 28, 2009 and June 29, 2008 were $11.5 million (0.40% of sales) and $11.6 million (0.43% of sales), respectively. New store pre-opening costs fluctuate between reporting periods depending on the new store opening schedule and market location.
The decrease in Harris Teeter's operating profit resulted primarily from additional promotional activity designed to provide more value to our customers. The sales increases, along with a continued emphasis on operational efficiencies and cost controls, have provided the leverage to partially offset the additional costs associated with Harris Teeter's increased promotional activity and new store program (pre-opening costs and incremental start-up costs), increased associate benefit costs, credit and debit card fees, and other occupancy costs.
Thomas W. Dickson, Chairman of the Board, President and Chief Executive Officer of Ruddick Corporation commented that, “We continue to experience changes in our customers' spending habits and shopping demands during this time of economic uncertainty. Our customers continue to look for value and we remain focused on enhancing the overall value we deliver to our customers while maintaining or increasing our customer base. We continue to make investments in promotional activity, as well as price, to drive customer shopping visits and loyalty.
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Ruddick Corporation
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