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Enjoying the meteoric rise of its Mariano's Fresh Market banner in the Chicago area, Milwaukee-based Roundy's Inc. posted net sales growth in the fourth quarter and the full 2013 fiscal year.
Total 2013 sales increased 1.5 percent to just shy of $3.95 billion, while the quarter posted a 2 percent boost to just over a billion dollars.
Adjusted net income for the year was $34.5 million, with earnings of 76 cents per common share. For Q4, Roundy's reported adjusted net income of $11.4 million, or a quarter per share,
“We continued to experience an improvement in our sales cadence across our core markets which helped us begin to generate a slight increase in a number of key metrics versus the prior year,” said Robert Mariano, chairman, president and CEO of Roundy’s. “While we still have important challenges to overcome in our core markets, we believe the investments we made in 2013 and continue to make in 2014 are beginning to resonate with our customers.”
Mariano noted that Mariano's, "our growth banner," enjoyed continued strong performance in the fourth quarter with all key metrics generating an improvement compared to the prior year. The banner opened two stores during Q4, along with another store in early February, bringing the chain's organic store count to 14.
Ex-Dominick's Locations Opening
"We continue on schedule with the remodeling of the acquired Dominick’s stores," Mariano said, noting the recent opening of two of those locations, Park Ridge on Feb. 18, and Northfield on Feb. 25. "By the end of the year, we expect to have a total of 29 Mariano’s stores in the Chicagoland area," Mariano said.
For the overall fiscal year, the increase in net sales primarily reflects new store openings, partially offset by a 2.7 percent dip in same-store sales and three store closures during 2013. The decline in same-store sales is blamed on a 4.7 percent decrease in customer transactions, partially offset by a 2.2 percent increase in average transaction size. Roundy's said same-store sales comparisons were negatively impacted by competitive store openings, the mix shift to greater generic pharmacy sales and weak economic conditions in core markets. The Q4 net increase and 2.4 percent decrease in same-store sales were chalked up to similar factors.
Founded in Milwaukee in 1872, Roundy’s operates 164 retail grocery stores and 113 pharmacies under the Pick ’n Save, Rainbow, Copps, Metro Market and Mariano’s retail banners in Wisconsin, Minnesota and Illinois.