Smart & Final continues to focus on expansion
Smart & Final continues to focus on expansion
While its acquisition of 32 Haggen stores is still awaiting court approval, Smart & Final expects to open the converted stores in 2016. The company's 2016 store development plans also include an additional six to eight new Smart & Final Extra! stores and three to five new Cash & Carry stores.
"With exciting store growth prospects, an exceptional team, and a differentiated consumer proposition, we look forward to continuing to execute our growth plan," Dave Hirz, president and chief executive officer, said when announcing the company's third quarter financial results.
During the third quarter of fiscal 2015, the company opened six new Smart & Final Extra! stores and completed three conversions of legacy Smart & Final stores to the Smart & Final Extra! format, including one store relocation. The company also opened one new Cash & Carry store.
As of Oct. 4, 2015, the company operated a total of 120 Smart & Final Extra! and 96 legacy Smart & Final stores, and 54 Cash & Carry stores.
During the fourth quarter of fiscal 2015, the company expects to open five additional new Smart & Final Extra! stores, complete two additional conversions of legacy Smart & Final stores to the Extra! format, including one store relocation, and open one new Cash & Carry store.
Beyond new locations, sales were strong for Smart & Final. "Smart & Final stores delivered solid operational and financial results in the third quarter, led by our consistent comparable store sales growth and new store development in-line with our plans," said Hirz. "Since our September 2014 initial public offering, we have grown the number of Smart & Final Extra! stores by 33 to 120, opened two new stores in the Cash & Carry banner, and continued to deepen our merchandise offering to meet the evolving needs of both our household and business customers."
Net sales were $1.246 billion, a 10.1 percent increase as compared the same period of 2014. Net sales growth was driven by a 4.8 percent increase in comparable store sales and from the net sales contribution of new stores. The growth in comparable store sales comprised a 5 percent increase in comparable transaction count and a 0.2 percent decrease in comparable average transaction size.