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Unified Grocers Seeks Balance Post Q3 of 2016 After Haggen Phase Out

Unified Grocers Seeks Balance Post Q3 of 2016 After Haggen Phase Out


LOS ANGELES, CA
Wednesday, August 17th, 2016

Unified Grocers is looking forward to the future after turning out a lower third quarter sales than this time last year. Despite some uphill battles, President and Chief Executive Officer was positive about the results.

Bob Ling, President & CEO, Unified Grocers Inc.

“I’m pleased about our performance to date in 2016,” Ling said in the financial report. “The goal for this year was to get on track as we wound down the Haggen Pacific Southwest business, and the year-to-date results show we’re doing that. With borrowing availability under our revolving loan agreement of $127 million we have the liquidity we need to execute the strategies we have in place to further improve our operations and grow sales.”

Financial highlights for the quarter included:

  • Gross billings for the 39 weeks ended July 2, 2016 of $2.914 billion, compared to $2.996 billion for the same period last year.
  • Operating income of $5.2 million for the 2016 period compared to $2.1 million in the same period last year.
  • Gross billings for the 13 weeks ended July 2, 2016 (the “2016 quarter”) of $974 million compared to $1.070 billion for the same period last year.

The retailer attributed the majority of its decline in sales to the loss of business from Haggen’s Pacific Southwest division, which filed for Chapter 11 bankruptcy in September of 2015.

“We are particularly pleased that we were able to maintain a similar operating income performance to last year’s third quarter in light of the loss of sales from the Haggen Pacific Southwest business,” Ling continued. “Looking at the bigger picture, there are many success stories around the organization.”

Among those stories, Ling named the retailer’s Market Centre division, which is looking continuously for new ways to help Unified Grocers’ members differentiate themselves in the fast-growing specialty and natural business.

“We have also successfully transitioned our Southern California dairy business through a preferred supplier arrangement with Dean Foods, and our members now have access to a wider range of general merchandise and health, beauty, and wellness products through our membership in Topco,” Ling continued.

As for what’s to come, Unified looks to focus on expense control and warehouse efficiencies, remaining positive that it will phase out those losses.

Ling expressed excitement for all the new products the company will be showcasing to customers and members at its annual Expo, which kicked off yesterday, August 17th.

Long Beach Convention Center, where Unified’s annual Expo is taking place this week

“Unified’s annual Expo is the largest, best-attended grocery trade show in the western U.S. and I’m confident that this year’s event will be valuable for all participants,” the President and CEO concluded.

Taking place in Long Beach, CA, at the Long Beach Convention Center, the event winds down today at 4:00 p.m.

Unified Grocers