Weis Markets chairman Jonathan H. Weis announced his company’s plans to invest $92 million in the growth and upgrade of its store base, information technology systems and supply chain.
At the company’s annual shareholders meeting April 23, Weis said, “We continue to invest in the upgrade of our store base and information technology infrastructure. In 2015, we plan to invest approximately $92 million in our growth and currently have twelve store projects under way and another 23 in active planning stages. We have also begun work on a major expansion of our distribution center, which will allow us to improve efficiencies and increase our fresh department variety. In recent years, we have steadily upgraded our supply chain which has helped us drive costs out of the system while maintaining our in-stock conditions.”
Weis said the retailer opened two new stores in 2014. It also completed 16 remodels and three gas stations.
At the meeting, Weis also updated shareholders on the company’s successful go-to-market strategies: “As part of our effort to continue our sales momentum in 2015, we reinforced our pricing image through our lowest price guarantee program – which offers a market low price on four weekly items and our longer term Every Day Lower Price program on nearly 2,000 every-day items.”
Weis also spoke of his company’s efforts to upgrade the in-store customer experience. “Over the past year, we have dedicated ourselves to providing standout customer service. Today, we compete against channels of trade that are indifferent to the concept or are online and devoid of any real human connection. We strongly believe in reaching out to customers – and looking for ways to serve them. This will help us build long term relationships that benefit our business.”
Weis reviewed the company’s online shopping service with curbside pick-up, which is now available in 26 stores and will increase to 31 locations by summer.
“We offer on-line shopping with personal shoppers that helps us to replicate the in-store experience in terms of quality and service,” said Weis. “This is a segment of our business that has enormous potential in the years ahead.”
The Sunbury, PA-based regional chain also posted its first quarter earnings and sales. For the period ended March 28, Weis posted a 3.7 percent increase in overall revenue while comparable store sales (excluding fuel) increased 4.7 percent. During the thirteen-week period, Weis’ sales totaled $712.4 million. During the same period, the retailer’ net income totaled $13.1 million, down 11.2 percent while earnings per share totaled $0.49 compared to $0.55 per share in 2014.
“We continue to make long-term investments in growing our sales and are encouraged by our results,” said Jonathan Weis, Weis Markets’ chairman and CEO. “Our first quarter sales increase was the result of improved everyday pricing, disciplined promotions and an improved in-store experience. This combination produced a strong increase in customer count and continued market share growth.”
Weis also broke ground on its previously announced expansion of its 1.1 million square foot cold storage distribution center in Milton, PA (see photo below). Weis had secured a $1 economic growth initiative grant from the state of Pennsylvania last September to help fund the project.
The 100,000 square-foot addition will be used to store and distribute fresh meat, deli and dairy products. The company said it expects to complete construction in February 2016.
“Our expansion will enhance our distribution center’s long-term productivity and viability. It will also improve our overall competitiveness and help ensure the economic prospects of a facility employing 750 Weis associates – our company’s single largest location,” said Jonathan Weis. “In the years ahead, as we expand our distribution center, we expect to hire additional associates and create new opportunities at our facility.”
He also addressed the expansion’s conservation features.
“Our expansion is also a sustainable project. When completed, our new facility will have the latest in energy efficient equipment and lighting and will use significantly less refrigerant,” said Weis. “The addition will allow us to consolidate our delivery schedule. Consequently, we will use 23,000 fewer gallons of diesel fuel in a year’s time and our trucks will travel 144,000 fewer miles.”
And just prior to presstime, we learned that the company has added a key new executive to its leadership team. Richard Gunn has been named senior VP-merchandising and marketing where he will oversee the company’s fresh and center store merchandising, sales and procurement, marketing and advertising. He will report to COO Kurt Schertle.
Gunn has more than 30 years of food retail experience. Prior to joining Weis Markets, he was executive VP-merchandising and marketing at K-VA-T Food Stores (FoodCity) which operates stores in Virginia, Kentucky and Tennessee. Earlier in his career, he worked in various store and regional positions before moving into marketing and merchandising positions where he held increasingly senior positions.
