Fairway Group shrinks Q1 net loss: plans new store model
New York – Fairway Group Holdings Corp., the parent company of Fairway Market, moderately shrunk its net loss in the first quarter of fiscal 2015.
The retailer reported net loss of $8.54 million, down 3% from $8.84 million a year earlier. The decrease in the net loss was primarily attributable to a decrease in general and administrative expenses, production center start-up costs and direct store expenses, partially offset by lower gross profit and an increase in the income tax provision, interest expense and store opening costs.
Net sales dropped slightly to $199.1 million, from $200.3 million. Same-store sales decreased 3.6%.
Fairway Group plans to open a new store in Brooklyn to serve as a new store model. It will have a smaller footprint and lower cost structure than existing stores, with the same product offering. The chain expects to further improve the profitability of the store by optimizing space allocations between departments based on learnings from recently conducted productivity studies. The retailer believes it can build this store with a lower cost per square foot than its existing locations.
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