Roundy’s sales decline in Wisconsin

Freeman Staff

May 13, 2015

MILWAUKEE — Same-store sales for Roundy’s-owned stores in Wisconsin continued to be negatively affected by competitive store openings, according to a financial report Wednesday.

Net sales for Roundy’s Wisconsin markets were $646.7 million for the first quarter, a decrease of $16.8 million, or 2.5 percent from $663.5 million for the first quarter 2014, according to the announcement. Roundy’s cited the closure of three stores during the fourth quarter of 2014 as being the main reason for the decline in sales.

Same-store sales decreased 0.1 percent due to a 0.8 percent decrease in the number of customer transactions, partially offset by a 0.7 percent increase in the average transaction size, according to Roundy’s.
Adjusted for the effect of the 2015 Easter holiday calendar shift, same-store sales declined 1.4 percent during the first quarter.

Roundy’s reported Wednesday that the net sales for the whole company from continuing operations increased 13.8 percent to $981.9 million during the first quarter, but that net loss was $0.4 million.

“We achieved our targeted EBITDA and gross margin rate for the first quarter, which were the result of improved operational efficiencies in both our Wisconsin and Illinois stores. Due to softer than anticipated March and Easter sales, our same-store sales were below our expectations,” said Robert A. Mariano, chairman, president and chief executive officer of Roundy’s. “We remain committed to improving financial performance across all of our banners. Our team has embarked on a number of initiatives aimed at managing expenses and further improving our operating efficiencies and execution.”