Sales, expenses, taxes hit Village Super Market Q2 income
Springfield, N.J. – Village Super Market Inc. reported a 69% decrease in net income during the second quarter of fiscal 2014, compared to the same period in the prior year. Net income fell to $2.8 million from $9.1 million.
Village Super Market cited a charge for future lease obligations due to the closure of a store, an $840,000 partnership distribution realized in the second quarter of fiscal 2013, flat same-store sales, higher operating expenses as a percentage of sales and an increase in the income tax rate as a result of an unfavorable New Jersey Tax Court decision as all driving its substantial net income decline.
Net sales fared better, rising 2.6% to $392.2 million from $382.1 million. The company expects same-store sales in fiscal 2014 to range from a decrease of .5% to an increase of 1%.
Intelligrated introduces Knighted fulfillment execution
Cincinnati – Intelligrated is introducing fulfillment execution systems, a new software model from its subsidiary company, Knighted Fulfillment execution systems optimize fulfillment in real time.
The Knighted fulfillment execution system acts as the operational brain, making automated, real-time decisions based on constant analysis of order priority, inventory, labor, process and equipment information to optimize fulfillment operations. This real-time software model contrasts with conventional WMS solutions, which focus on a cycle of planning, executing, monitoring and adjusting as a sequence of discrete events.
Knighted software uses points-based tasking algorithms to manage inbound and outbound operations, automation flow, yard, labor and inventory to balance and prioritize workflow throughout the entire operation. Drag-and-drop workflows enable software adjustments and process optimization, eliminating the need for complex software coding.
“The demands of today’s omni-channel retailers require fulfillment operations to ship orders faster and more efficiently than ever before,” said Greg Cronin, executive VP. “The Knighted fulfillment execution system model enables fulfillment operations to adapt in real time and deliver intelligent decisions at the speed of automation for maximum efficiency.”
Knighted fulfillment execution systems deliver a suite of warehouse management, warehouse control, labor management, business intelligence and order fulfillment technologies with enterprise visibility, scalable for single-facility operations to multi-site enterprises.
RadioShack to close up to 1,100 stores
Fort Worth, Texas — RadioShack Corp. said it plans to close up to 1,100 stores, approximately one-fifth of its total, and also announced a disappointing holiday season and a wider quarterly loss. The shutterings will leave the chain, whose turnaround appears to be still far off, with over 4,000 locations, including more than 900 dealer franchise locations.
“Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles – location, area demographics, lease life and financial performance – in order to consolidate our store base into fewer locations while maintaining a strong presence in each market,” said Joseph C. Magnacca, CEO. “The result of that review is our plan to close up to 1,100 underperforming stores.”
Joe Magnacca, a former Walgreens executive, took the helm of RadioShack in February 2013 and launched an ambitious turnaround plan to reinvigorate and reposition the struggling brand. He has said he expects the turnaround to take several quarters.
"Our brand equity remains strong, reflected in the sales growth we’re seeing in our new Concept Stores, which redefine the RadioShack store experience," Magnacca said. "We have also been encouraged by the positive response to our new brand positioning around "Do It Together," which we kicked off with our award winning Super Bowl commercial. Importantly, our key hires during the fourth quarter in merchandising, global sourcing, planning and allocation and, more recently, our new chief financial officer, round out our new leadership team as we continue to re-build the business."
RadioShack attributed its poor performance in the quarter to a decline in shopper traffic, deep promotions by competitors, and weak sales in phone-and-tablets.
The chain reported a net of $191.4 million in the fourth quarter, ended Dec. 31, from $63.3 million in the year-ago period.
Sales dropped to $935.4 million in the quarter, from $1.17 billion last year. Wall Street expected revenue of $1.12 billion. Same-store sales plunged 19%.
RadioShack reported a full-year loss of $400.2 million, versus a loss of $139.4 million for the year-ago period.
Annual revenue fell 10% to $3.43 billion, from $3.83 billion.