US grocery retailer Ingles Markets more than doubled its net income in its fiscal third quarter on the back of increased store traffic, driving sales despite a lower average ticket.
Net income for the quarter ended 26 June reached US$11.7m against $4.7m for the same period in 2009.
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Net sales stood at $856.1m, a 3.5% increase on the same period in 2009. Comparable-store sales, excluding gasoline, were up 0.8%.
Ingles recorded a 7.9% increase in the number of customer transactions, while the average transaction size decreased 7% compared with the same quarter last year.
The company attributed this to the impact of the recession on customer spending, which is characterised by more trips to the store and lower average purchases.
CEO Robert Ingle said: “We are pleased with our growth in sales and in customer visits to our stores. Our improved results highlight our goals of building sales and customer visits as drivers to deliver better results in an economic and competitive environment that still has significant challenges.”
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By GlobalData
