Weis Markets launching same-day delivery via Shipt

Weis Markets announced that it will rollout same-day delivery via Shipt beginning on September 6 in 11 markets throughout Pennsylvania, Delaware and Maryland. Shipt, based in Alabama and owned by Target, said the rollout will give nearly 2.6 million households access to products delivered from Weis in as soon as one hour.

The same-day service will serve as another online option for Wies customers, as the supermarket chain already has its Weis 2 Go click-and-collect grocery service available at about 90 stores. Weis operates 2016 stores in Pennsylvania, Delaware, Maryland, New Jersey, New York, West Virginia and Virginia.

Wegmans tops Consumer Reports list again

Wegmans grabbed the top spot in a survey of grocery chains conducted by Consumer Reports, which received feedback from nearly 58,000 subscribers. Wegmans has held the top spot in the annual survey since 2006.

For 2017, the company received excellent ratings in categories such as cleanliness, fresh store-prepared foods, staff courtesy, checkout speed, produce quality and variety, meat/poultry quality, healthy options and local produce quantity.

Market Basket finished second, followed by Trader Joe's, Publix and Fairway Stores. Costco and Aldi received good marks, while Whole Foods, Kroger, BJ's, ShopRite, Giant and Weis were further down the list. Acme received poor marks, and Walmart finished last.

ShopRite, Weis, Grocery Outlet add stores

It was announced last month that Village Super Market, a Wakefern member that operates 29 ShopRite supermarkets, signed a lease for a 90,000 square foot store that will anchor a new mixed-use development in Old Bridge, NJ. The store is slated to open next summer. Plans for the development include 2,000 residential units and more than 500,000 square feet of retail space.

Weis announced last month that it plans to purchase five Mars stores in Baltimore County, Maryland. When the purchase is complete (in late July, according to the announcement), Weis will have nine stores in the county. Mars currently operates 13 stores, including the five stores to be closed. The company closed four stores earlier this year.

Grocery Outlet, the California-based chain that purchased Amelia's in 2012, celebrated its 50th Pennsylvania store with its opening last month in Quakertown's Trainer's Corner Shopping Center. Sears Hardware had previously occupied the building. A Grocery Outlet employee said the company plans more stores, with an expansion goal of 80 throughout New Jersey, Maryland and Virginia.
  

Weis plans for $92 million in capital spending

Weis announced late last month that they plan to invest $92 million in capital spending this year to grow and upgrade its stores, information technology systems and supply chain. According to Chairman Jonathan Weis, there are 12 store projects underway and another 23 in active planning stages. There is also a major upgrade planned for the company's distribution center.

Weis currently operates 163 stores in Pennsylvania, Maryland, New Jersey, New York and West Virginia.

New Weis Market approved for Lower Macungie, PA

Last week the Lower Macungie (PA) Township planning commission recommended that the project featuring a new Weis supermarket along with 204 apartments and a gas station be approved. The proposed mixed-use project, known as Grandview Crossings, is planned for the Allen Organ property on Route 100.

The township's board of supervisors will vote on final approval in the coming weeks.

The existing Weis market located across the street will close once the new store is ready, and the Grandview Crossings developers have proposed that it be repurposed to include both retail and office space.

Trader Joe's beating up Whole Foods in sales per square foot

Business Insider published an article earlier this week explaining why Trader Joe's sells nearly twice as much per square foot than Whole Foods ($1,734 PSF compared to $930 PSF).

According to the story, "Trader Joe's is cheap." For instance, Trader Joe's sells a bag of quinoa for $4.99, while Whole Foods sells it for $9.99. The story doesn't specify whether or not the bags are the same size, but I think we're supposed to assume they are. The story also doesn't specify what quinoa is. Blogger.com's spell check and I are unsure.

Anyway, the point is that consumers view Trader Joe's as high-quality but inexpensive, and despite Whole Foods' recent and ongoing efforts to lower some prices, analysts say they are not doing enough to market their bargains, so customers don't realize Whole Foods is getting cheaper.

Regarding the sales per square foot numbers, here are some stats from the story:

Trader Joe's - $1,723 PSF
Whole Foods - $937
Publix - $552
Kroger - $496
The Fresh Market - $490
Weis Markets - $335

It should be noted that Whole Foods announced in February that its stores generated an average of $983 in sales per square foot in 2013. And according to stats published by the Food Marketing Institute, the average sales PSF for supermarkets in the U.S. is $360 (based on a median total store size of 46,000 SF and median weekly sales per supermarket of $318,170).

Another reason for Trader Joe's success, according to the article, is that 80% of Trader Joe's products are in-house brands, so customers can't buy them anywhere else. In addition, the product mix is pretty creative (Chili-Lime Chicken Burgers, Cookie Butter), while the mix at Whole Foods is basic in comparison.

Whole Foods has been considered the go-to place for organic and healthy foods in recent years, but lately the competition is catching up, including Walmart.

Lastly, the story included an interesting chart illustrating the projected growth in sales for various grocery formats. Fresh, limited assortment and dollar store formats are leading the way.

Fresh format - 92.2% growth in sales through 2018
Limited assortment - 38.4%
Dollar store - 31.2%
Supercenter - 22.9%
Wholesale - 19.0%
Convenience store - 12.7%
Drug store - 10.6%
Traditional supermarket - 3.6%  

Bottom Dollar has lowest prices in Philly region, according to study

According to a story on CBS Philly, researchers from the Delaware Valley Consumers' Checkbook visited supermarkets across the Philadelphia region to see which retailer had the lowest prices. The shoppers compared prices on 151 items, including fresh produce, fresh meat, national brand prepared foods and dairy products.

And the winner is... Bottom Dollar. The discount grocer's basket sold for $78, compared to the same basket at Whole Foods, which cost $134.

Walmart and Wegmans (yes, Wegmans) came in second and third place, respectively. According to Checkbook Executive Director Kevin Brasler, Bottom Dollar, Walmart and Wegmans offered significant grocery savings on a daily basis, as compared to other supermarkets that attract customers with sales.

"Big chains like Acme, Pathmark, Giant and ShopRite really pull customers in with sale prices," said Brasler, who also pointed out that prices on other items can be high and even vary from store to store.

The researchers determined that Giant, Food Lion, ShopRite, Redner's, Target and Weis all have prices that are lower than average. Pathmark and Super Fresh, both owned by A&P, had prices that were higher than average, and Whole Foods and Acme had the highest prices.

Aldi was mentioned as having "steep savings" but a limited selection.

Could Weis Markets be Kroger's next acquisition?

An October 21 story on Cincinnati.com about Kroger's growth plans specifically mentions A&P and Weis as possible acquisition targets for the nation's largest supermarket chain. In the past year, Kroger executives have indicated a willingness to grow, potentially through more acquisitions. The company is about to close on a $2.5 billion purchase of Harris Teeter.

Although A&P and its 320 stores could reportedly be available for between $500 million to $1 billion, most analysts agree that Kroger would prefer to pursue a healthier company. And Weis, which has experienced strong financials results in recent years, is considered cheap when measured by its price-to-earnings ratio.

Weis, which operates 165 stores in PA, MD, NJ, NY and WV, is undergoing a management change, as CEO David Hepfinger recently left to pursue other interests. Vice Chairman Jonathan Weis is now the CEO on an interim basis.

According to the Cincinnati.com story, analysts say family-controlled companies become more likely to sell out to a larger player when a third generation family member assumes control. Currently, 47 percent of Weis is owned by Robert Weis, the 93-year-old son of the company's co-founder.

Analyst Joseph Feldman of Telsey Advisory Group added that companies with families owning large stakes could make a deal very easy or shut it down, depending on their wishes.

Proposed mixed-use development in Lower Macungie to include Weis Markets

Earlier this week developers of a proposed residential and retail center in Lower Macungie Township shared their plans with the township's Planning Commission. Remington Property Corp. plans to build apartments, a 75,000 square foot Weis supermarket, a gas station and two restaurants at the corner of Route 100 and Gehman Road.

Weis is currently located on Route 100 but would relocate into the development.

From The Morning Call: New Weis store will be 'right-handed'

Weis Markets CEO resigns

Weis Markets announced yesterday that CEO David J. Hepfinger has resigned as CEO "to pursue other interests." Jonathan Weis, the company's vice chairman, has been named CEO on an interim basis.

Hepfinger served as CEO for more than four years, during which time the supermarket chain experienced significant store expansion and renovation programs, including the acquisition of several former Genuardi's stores.

More recently, Weis reported decreases in sales and comp-store sales for the second quarter of 2013.

Weis Markets has 165 stores in Pennsylvania, Maryland, New Jersey, New York and West Virginia.

Weis opens fourth New Jersey store

Last Monday Weis opened its fourth New Jersey store, this one on Route 206 in Hillsborough. The store is 55,200 square feet and features the usual departments plus an in-store pizza kitchen and online shopping. The company expects that the store will receive the EPA's GreenChill Gold-Level Certification. That's great for the environment, and if it also means fresh produce and low prices (which it has absolutely nothing to do with), customers will be happy about it as well.

Weis currently operates 164 stores in PA, MD, NY, NJ and WV.

Weis opens large, green supermarket in Fogelsville

Weis Markets opened its newest store earlier this month in Fogelsville, and at 65,800 square feet it's the company's largest in the Lehigh Valley. It is also expected to be the Valley's first grocery store to be LEED-certified by the U.S. Green Building Council.

According to Weis, the store will use approximately 22 percent less electricity than a typical grocery store, and 60 percent fewer refrigerant emissions.

The store's 35-seat cafe offers beer that customers can drink with their meal or take home.

The largest supermarket in the Lehigh Valley is the 74,000 square foot Giant that opened last December.

Audubon store to be last Genuardi's standing

It appears that by the end of the year there will be one Genuardi's grocery store left. With the Evesham, Egg Harbor and Barnegat stores slated to close soon, Audubon, PA will be home to the only remaining Genuardi's.

Earlier this year, Genuardi's closed stores in Royersford, Exton and Norristown. Over the summer, 15 Genuardi's transitioned to Giant, three to Weis and one to McCaffrey's. In August, the Cherry Hill site closed. That left four stores, three of which are closing, as mentioned above.

In a recent article the Audubon store manager said his supermarket is in it for the long hall, but that doesn't seem likely. Besides, Safeway's Eastern Division President Steve Neibergall said months ago that the company has decided to exit the Philadelphia market.

Weis Markets 3Q results include higher earnings, lower sales

Weis Markets announced its third quarter earnings recently, which were highlighted by a 1.2% increase in net income to $17.2 million.

In addition:

• Earnings per share increased 1.6% to $0.64 per share as compared to the same period one year ago.
• Operating income increased 1.3% to $26.5 million.
• Sales decreased 1.5% to $668.4 million.
• Comparable store sales decreased 1.7%.

According to the company, net income and operating income increases were due to its continuing focus on disciplined promotions and marketing, increased store-level productivity, improved operational and supply chain efficiencies, and a decrease in depreciation expenses.

The decrease in sales was attributed to spikes in sales in the third quarter of 2011 as a result of Hurricane Irene and Lee. Weis also pointed to higher gas prices as well as cautious consumer spending due to high unemployment in Northeastern Pennsylvania, New York's Southern Tier, and parts of Central Pennsylvania.

For the year-to-date, the company's sales were down 0.4% and comparable store sales were down 0.2% as compared to the same period one year ago. Net income rose 7.3% and operating income rose 7.1%.

Weis to replace Pathmark in Huntingdon Valley

The Marketplace at Huntingdon Valley, site of a 52,000 SF Pathmark that closed earlier this year, will soon feature a 62,000 SF Weis supermarket that will sell wine and beer by the glass in its cafe. According to the shopping center owner, Weis Markets will invest $5 - $8 million in the store for improvements to make it one of their flagship properties.

The store, which will also feature a new food court, is expected to open in February or March of next year.

Weis Markets currently operates 164 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia. The company recently took over three Genuardi's stores in Southeastern PA.

Genuardi's... and then there were 4

Five Genuardi's stores transitioned to Giant last week and 10 more will transition later this month. Three Genuardi's stores reopened as Weis supermarkets last month, and one will be a McCaffrey's within a couple weeks. For those (like me) keeping score, that leaves five open and operating.

Next month it'll be down to four. The Cherry Hill Genuardi's, located in Ellisburg Circle Shopping Center, will close on August 4, according to published reports. Safeway couldn't find a buyer for the store, and is still looking for buyers for the remaining supermarkets in New Jersey (Barnegat, Egg Harbor, Evesham) and Audubon, PA.

Led by Whole Foods, food retailers ahead of Dow Jones pace

Supermarket News tracks the stock prices of food retailers, and they reported last Friday that Whole Foods Market was the industry leader for the first half of the year with a 37.69% gain in price. The Fresh Market, a similar store to Whole Foods in that it's a high-end market, was next with a 34.41% gain in its share price.

Stock prices for most of the traditional supermarket operators fell during the first half of the year. Supervalu (Acme, Save-A-Lot) fell 34.18%, Safeway (Safeway, Genuardi's) fell 12.23% and Ahold (Giant, Stop & Shop) fell 4.18%. On the other hand, large retailers like Walmart, Target and Costco all gained. Overall, the Supermarket News Index was up 13.25%, which is well above the gains for the Dow Jones Index (5.42%) and S&P 500 Index (8.31%) during the same period.

Here are how some of the food retailers closed at the end of June:

Winners
Costco - closed at $95.00; up 14.72%
Target Corp. - closed at $58.19; up 14.89%
The Fresh Market - closed at $53.63; up 34.41%
Village Super Market (ShopRite operator) - closed at $32.58; up 16.44%
Wal-Mart Stores - closed at $69.72; up 18.25%
Weis Markets - closed at $44.52; up 12.99%
Whole Foods - closed at $95.32; up 37.69%

Losers

Ahold (Giant, Stop & Shop) - closed at $12.39; down 4.18%
Delhaize (Food Lion, Bottom Dollar) - closed at $36.71; down 30.93%
Safeway (Safeway, Genuardi's) - closed at $18.15; down 12.23%
Supervalu (Acme, Save-A-Lot) - closed at $5.18; down 34.18%

Weis Markets reports strong quarterly and year-end results

It's been a busy day for Weis. Not only did they announce the purchase of three Genuardi's stores in Pennsylvania, but they also announced their quarterly and year-end results. The Genuardi's news can be found in more detail here, and below is a short summary of their financial results.

• Sales increased 11.4% for the 14-week period ending December 31, 2011 (the fourth quarter), compared to the 13-week period ending December 25, 2010. Comparable sales - adjusted for the extra week in 2011 - increased 4.8%.
• Fourth quarter income increased 37% compared to the same period a year ago, and earnings per share increased 38.5% ($0.20 per share) to $0.72 per share.
• Sales increased 5% to $2.8 billion for the 53-week period ending December 31, 2011 (the year). Comparable sales - adjusted for the extra week in 2011 - increased 4.2%.
• Net income for the year increased 10.7% to $75.6 million, and earnings per share increased $0.27 to $2.81 per share.

This year is Weis Markets' 100th year of operation.

Weis to buy three PA Genuardi's stores

PA-based Weis Markets, which operates 161 stores in five states, announced in a press release earlier today that it was buying three Genuardi's supermarkets in Pennsylvania. The locations are Conshohocken, Doylestown and Norristown (Germantown Pike).

No sale price was disclosed, and Weis said the stores would continue to operate as Genuardi's while the deal was finalized.

Last month it was announced that Giant would buy 16 Genuardi's locations in Pennsylvania. With three now going to Weis, that leaves the following Genuardi's stores:

Audubon, PA
Barnegat, NJ
Cherry Hill, NJ
Egg Harbor Township, NJ
Evesham, NJ
Exton, PA (closed earlier this month)
Norristown, PA (West Main Street) - closing March 10
Royersford, PA (closed earlier this month)

Weis Markets fourth quarter and year-end results

Weis Markets on a role as sales continue to increase

Weis Markets reported last week that third quarter sales jumped 6% to $678.6 million and same-store sales increased 6.5% compared to the same period a year ago. In addition, the company's third quarter earnings per share increased to $0.63 (from $0.61) and net income for the period was up 4.1% to $17 million.

Weis Markets Chairman Robert F. Weis said in a press release that the company benefited from improved operating performance and execution at store level, and increased supply chain efficiencies. He also noted that fuel and wholesale inflation had an impact on the business, but the increased costs were not passed on to consumers.

For the 39-week period ending September 24, 2011, Weis Markets' sales increased 2.9% to $2 billion, and same-store sales rose 4%.

Weis Markets operates 162 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia. Next year the company will celebrate it's 100th year of operation.