Harris Teeter reported an increase in second quarter operating profit, as the US grocer retailer booked higher sales on the back of improving consumer confidence.
The grocery retailer said yesterday (5 May) that operating profit was up 7.1% to US$50.5m in the quarter ended 3 April. Sales grew 4.9% to $1.05bn, which it attributed to incremental new store sales and a 1.4% improvement in comparable-store sales.
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For the half, operating profit was up 6.7% to $95.4m, while sales grew 5.5% to $2.08bn. Comparable-store sales were up 1.81% for the half.
Chairman and CEO Thomas Dickson said: “We are very pleased with our results for the first half of fiscal 2011. Our comparable-store sales remain strong on a comparable holiday basis. For a number of our customers, consumer confidence appears to be more optimistic as evidenced by a trading up in categories such as premium meats and wines, specialty breads and fresh produce. We are also seeing an increase in purchases of other categories such as prepared dinners, bottled water, organic produce, natural bulk foods and frozen natural and organic items, all of which had declined during the recession.”
The company also attributed the growth in operating profit to a focus on operating efficiencies and cost-saving initiatives. It said a portion of these savings have been invested in increasing promotional activity and offset increased occupancy costs, healthcare expense and increased debit and credit card fees.
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