Last updated on May 9th, 2016 at 09:08 am
Smart & Final Stores, the value-oriented food and everyday staples retailer, reported May 3 that its net sales increased 10.5 percent to $908.5 million in the 12-week first quarter ended March 27. Its comparable store sales growth was 2 percent, and it operated 290 stores at quarter-end, including 143 Smart & Final Extra! stores, which are geared to both business and household customers.
“Smart & Final Stores’ positive momentum has continued with a solid start to 2016. Strong traffic growth contributed to a 2.0 percent comparable store sales increase in the first quarter despite persistent deflationary headwinds,” said Dave Hirz, president and CEO. “We continue to drive engagement and attract new customers with our successful merchandising and marketing initiatives.”
Hirz added, “Our exciting store development plans are ahead of schedule. Next week we plan to open the last of the 33 acquired former Albertsons and Safeway locations, which were briefly operated under the Haggen banner. With these locations, we’re increasing Smart & Final’s presence in our important Los Angeles and Orange County markets, as well as doubling our penetration in the California Central Coast and San Diego markets. In all of our markets, we look forward to building deeper community ties and meeting the shopping needs of each unique area.”
The Commerce, California-based retailer had a net loss of $2.0 million, or $0.03 per diluted share, for the first quarter, including the effect of higher store development costs. Its adjusted net income was $6.3 million, or $0.08 per diluted share.
Net sales for Smart & Final banner stores were $709.3 million, a 12.8 percent increase as compared to $628.8 million in the same period of 2015. Comparable store sales growth for the Smart & Final banner was 2.5 percent in the first quarter.
Net sales for Cash & Carry banner stores were $199.1 million, a 3.0 percent increase as compared to $193.3 million in the same period of 2015. Comparable store sales growth for the Cash & Carry banner was 0.3 percent in the first quarter.
Net sales growth was driven by a 2.0 percent increase in comparable store sales and from the net sales contribution of new stores. The growth in comparable store sales comprised a 2.4 percent increase in comparable transaction count and a 0.4 percent decrease in comparable average transaction size, including the impact of deflation in key product categories in both store banners.
During the first quarter of fiscal year 2016, the company opened 14 new Smart & Final Extra! stores and completed two relocations of legacy Smart & Final stores to the Smart & Final Extra! format stores. As of March 27, the company operated a total of 143 Smart & Final Extra! and 92 legacy Smart & Final stores, and 55 Cash & Carry Smart Foodservice stores in California, Oregon, Washington, Arizona, Nevada and Idaho, with an additional 15 stores in northwestern Mexico operated through a joint venture. In business for 145 years, the company remains committed to giving back to local communities through employee volunteer opportunities and Company donations to local nonprofits.
See our special section celebrating Smart & Final’s 145th anniversary in the June edition of
The Shelby Report of the West.