Weis Markets announced earlier this month that Kurt Schertle has been promoted to chief operating officer (COO) of the 166 store regional chain. Prior to his promotion, Schertle was the retailer’s executive VP. He will continue to oversee all aspects of Weis’ marketing, merchandising, procurement and advertising for its center store, perishable and pharmacy departments; store operations; and the company’s supply chain, including its distribution and transportation teams.
Additionally, Weis announced disappointing fourth quarter earnings and sales figures for the period ended December 28, 2013.
Concerning Kurt Schertle’s promotion, Jonathan Weis, the company’s president and CEO stated: “Kurt has taken on increasingly important roles at our company over the past five years. During this period, he has helped develop and implement our go to market strategies, particularly in loyalty marketing while helping to drive improved store level performance and increased supply chain efficiencies. With this promotion, Kurt will take on a broader oversight role in these areas while remaining deeply involved in the day to day operation of our company.”
Schertle promotion comes within a month of Jonathan Weis shedding the “interim” CEO title to become Weis’ chief executive officer. He also serves as vice chairman for the Sunbury, PA merchant.
Schertle joined Weis as VP-sales and merchandising in 2009. He was subsequently promoted to senior VP in February 2010 and executive VP last July.
The Baltimore, MD native has more than 25 years of food retailing experience. Prior to joining Weis, Schertle served as senior VP-marketing and merchandising for Shoppers Food & Pharmacy. Schertle began his career with Basics Food Stores, working at store level before being promoted to store manager. He progressed through the company, which eventually became Metro Food Markets, holding positions such has pricing director, director of GM/HBC, grocery director and vice president of grocery. When Metro was consolidated into the Shoppers organization, he served as grocery director of the combined organization before being promoted to vice president of grocery. He left the supermarket industry for a brief stint in another retail business before taking the position at Weis Markets.
Schertle is a graduate of Towson University.
Earlier this month, Weis issued its fourth quarter results. In the thirteen-week period ended December 28, 2013, the retailer’s sales totaled $686.4 million, down 1.1 percent compared to the same period in 2012. Comparable store sales for the same period were down 3.5 percent.
Fourth quarter net income declined 28.9 percent to $15.7 million compared to the same period in 2012. Fourth quarter earnings per share totaled $.59 compared to $.83 in 2012.
Weis said its fourth quarter results were impacted by a decline in food stamp/SNAP spending in its stores and a shortened holiday season, which impacted sales in key center store categories.  Its results were affected by fuel price deflation, which resulted in lower retail gas sales. Deli sales were also lower due to manufacturer recalls.
The closely-held supermarket operator attributed its lower fourth quarter net income to these sales trends and the recognition of a $680,000Â future liability associated with the lease commitment of a closed store property.
For all of fiscal 2013, the Weis’ sales totaled $2.7 billion, down 0.3 percent compared to 2012. Comparable store sales for the 52 week period declined 2.6 percent. Year to date net income totaled 2.7 percent of net sales or $71.7 million, down 13.1 percent. The retailer’s year to date earnings per share totaled $2.67 compared to $3.07 in 2012.
While Weis said that its market share remained stable, the regional chain’s year-to-date results were impacted by the trends affecting its fourth quarter results: stagnant sales performance in key center store categories, lower comparable store gas sales due to significant fuel price deflation and a decline in SNAP sales, which accelerated in the fourth quarter.
Weis added that its 2013 net income was impacted by a $6.1 million charge for the separation agreement of David Hepfinger, its former CEO, and a $2.1 million impairment loss for four properties and, as detailed in its fourth quarter report, a $680,000 future liability associated with the lease commitment of a closed store property.
