Two of the Mid-Atlantic region’s largest retailers – Ahold Delhaize and Weis Markets – posted healthy comparable stores sales in their most recent operating periods. As we’ve witnessed with many other national and regional chains over the past six weeks, comp store revenue remains solid (although not typically as strong as a year ago) while earnings have dipped to flat or slightly negative levels.
At Ahold Delhaize, overall U.S. second quarter net sales were $14.9 billion, and comp store sales increased 3.6 percent (excluding gas).
Commenting on his company’s results, Ahold Delhaize president and CEO Frans Mueller stated: “In the U.S., Q2 comparable sales grew by 4.0 percent (including gas), excluding the impact of weather and calendar shifts. Powered by growth in loyalty sales and increasing online penetration, we were able to more than compensate for the negative headwinds related to a reduction in the SNAP federal assistance program and moderating inflation rates. Food Lion (with its 43rd consecutive quarter of positive sales growth and the opening of more than 100 additional click-and-collect locations compared to the prior year) and Hannaford, in particular, continue to see strong market share gains as both brands further elevate their omnichannel capabilities. In aggregate, e-commerce penetration in the U.S. reached 8.1 percent for the first half of the year. We also continue to take concrete actions to orient our online fulfillment capabilities toward same-day delivery models. In line with this, we will close a facility in Jersey City, New Jersey, effective March 2024, utilizing our existing Stop & Shop store network and partners to service customers in this catchment area going forward.”
On the earnings side, Ahold Delhaize’s underlying operating margin in the U.S. was 4.6 percent, down 0.1 percentage points at constant exchange rates from the prior year period. In Q2, U.S. IFRS-reported (International Financial Reporting Standards) operating margin was 4.2 percent, mainly impacted by an impairment charge in the amount of $44 million for the Jersey City fulfillment center related to the Accelerate initiative.
At Weis Markets, second quarter overall net sales totaled $1.18 billion, compared to $1.14 billion for the 13-week second quarter in the same period last year, up 3.8 percent. Second quarter comparable store sales increased 3.5 percent on an individual year-over-year basis and increased 11.9 percent on a two-year stacked basis.
Weis Markets chairman and CEO Jonathan Weis said: “In the second quarter, we generated solid results due to the hard work and commitment of our associates at every level of our company. We continue to make strategic investments for long-term profitable growth which benefits our associates, customers, communities, and shareholders. We are keenly aware that our customers are looking for value and savings as they navigate the challenges of inflation, higher interest rates, and reduced government benefits.”
The Sunbury, PA-based retailer’s second quarter net income totaled $34.27 million compared to $36.27 million in 2022, down 5.5 percent. Second quarter earnings per share totaled $1.27 compared to $1.35 per share in 2022.