After growing its store base through an acquisition last year, Weis Markets is investing $90 million in its growth in 2017.
The budget includes new stores and remodels of existing locations. It also calls for supply chain improvements and continued information technology upgrades.
“Our budget includes 14 remodels, a new unit in Brunswick, Maryland, two fuel centers and the continued expansion of our distribution center in Milton, Pennsylvania. We also have seven new stores in the active planning stages and expect most of them to open in 2018,” Weis Markets chairman and CEO Jonathan H. Weis said in remarks at the company’s annual shareholders meeting.
In 2016, Weis acquired 44 stores from Ahold-Delhaize (including 38 Food Lion locations), converting them in three months to its own banner. The acquisition grew the company’s store base by more than 20%.
“As a result of our acquisition, we now operate 204 stores and expanded operations into two new states, adding Delaware and Virginia to our now seven state territory throughout the Mid-Atlantic region,” Weiss said.
Weiss noted that the company’s legacy stores continued to perform at a high level in 2016, which was a 53-week year compared to 52-weeks in 2015. Adjusting for the extra week, the company’s 2016 sales increased 6.9% to $3.1 billion while comparable store sales increased 2.9%.
Excluding a one-time gain, the company’s non-GAAP 2016 net income totaled $63.3 million, up 6.7%. The company’ same-store sales have increased eleven consecutive quarters.
Weis Markets operates 204 stores in Pennsylvania, Maryland, New Jersey, Delaware, New York, Virginia and West Virginia.