Whole Foods Posts Healthy Growth
Austin, Texas, Lifted by comparable-store sales growth of 15.2%, Whole Foods Market reported sales of $1.1 billion for the third quarter ended July 3, an increase of 23% increase compared to the same period last year. Net income increased 31% to $41.7 million.
“We are producing impressive sales and earnings results even as we compare against one of the best years in our company’s history,” said John Mackey, Whole Foods Market CEO, Chairman and Co-founder, in a prepared statement. “Our comparable stores have produced a sales increase of 12.6% year to date on top of a 15.2% increase last year, our new stores continue to perform above our expectations, producing a record $618,000 in average weekly sales during the quarter, and our net income has increased 27% year to date on top of a 34% increase last year.”
Safeway’s Sales Increase
Pleasanton, Calif., Safeway saw its comparable-store sales increase 3.3% and its identical-store sales increase 2.8% for the second quarter of 2005. The company’s total sales increased 4.7% to $8.8 billion for the second quarter of 2005. Last year, Safeway’s total sales were $8.4 billion for the second quarter.
Safeway believes the increase is due to its marketing strategies and recovery from the strike in Southern California last year. Steve Burd, chairman, president and CEO of Safeway, said, “Our strategy to differentiate our offering has resulted in broad-based sales improvement.”
Net income for Safeway, however, decreased for the second quarter. This year’s income was $134 million while last year’s was $155.2 million.
Food Lion Hires Ex-Kroger Exec
Salisbury, N.C., Food Lion hired Derrick Penick, a former merchandiser for Kroger, as senior VP of fresh merchandising and distribution. He replaces Cathy Green, who is now senior VP of retail operations.
Penick was most recently VP of merchandising at Kroger’s King Soopers division in Denver. Before that position, he had several other posts with Kroger including group VP of perishables, VP of merchandising, meat director and store manager.