US: Harris Teeter profits up in Q2

By: just-food.com | 30 April 2010

US retailer Harris Teeter saw its operating profit increase in the second-quarter on the back of an increase in net sales.

For the period ended 28 March, operating profit increased 4.6% to US$47.1m.

The increase resulted primarily from sales gains that provided leverage against fixed costs and a continued emphasis on operational efficiencies and cost controls, the firm said today (30 April).

Sales increased by 5.4% to $1bn in the second quarter as a result of incremental new store sales that were partially offset by comparable store sales declines during the period.

Comparable store sales however, declined 1.3% for the second quarter. The figure was negatively impacted by retail price deflation.

During the first half of the year, Harris Teeter opened nine new stores and closed three existing stores, two of which were replaced by new stores.

Thomas Dickson, chairman of the board, president and CEO of parent company Ruddick Corp said: "We have continued to drive customer shopping visits and loyalty through the investments we have made in our in-store promotional activity and lower everyday prices. During the first half of fiscal 2010, we realized a greater number of items sold and increased customer shopping visits in our comparable stores."