Net sales for the second quarter ended July 16 of $164.2 million compared to $163.2 million for the second quarter of 2004. Corporate retail store sales decreased $5.4 million, or 7.7%, during the first quarter of 2005 compared to the same period of 2004. The company's comparable store increases were 1.6% for the quarter, while franchise retail sales increased 4.2% and consolidated franchised stores were unchanged.

During the company's second quarter earnings call Friday, the company attributed its corporate and franchised Piggly Wiggly store-sales increases to its value proposition strategy and improved weekly promotions. Adversely, sales in nine of the company's corporate Dick's Supermarkets stores were flat for the quarter, as the company did not implement its value proposition strategy throughout those stores.

Also during its Q2, the company facilitated the closure of two underperforming franchise stores. In connection with the closures, Fresh recognized $1 million in repositioning charges related to the vacated leases. Louis Stinebaugh, Fresh Brands' president and chief operating officer, said the benefits of the closures are "beginning to be realized" as the company reports improved operating performance in its corporate and consolidated franchise retail segments.