The locally based chain, which operates 141 supermarkets primarily in the New York-New Jersey and Philadelphia metropolitan areas, will not open any new stores this year. However, it plans eight "major" remodels and six minor store renovations in fiscal 2006.
"We expect [the new prototype] to be done with this process in the next six months or so," said John Standley, CEO, at the company's first quarter conference call. "We will use the key elements of the prototype in our renovations once the design is complete."
Capital expenditures for the quarter came to $12.1 million, with a total of $70 million planned for the year. Six remodels will be completed in the second quarter, including one that opened last week in Staten Island, NY.
The new prototype is the latest in a series of initiatives to turn around the chain following a $150-million investment last spring by Los Angeles-based Yucaipa Cos. The initiatives include improving fresh food offerings, developing its private label lines and adding new product lines. The executives did not offer details about the new look, but indicated that it would incorporate lessons learned, while giving new ideas.
"The prototype is focused on the layout and atmosphere of the building," said Kenneth Martindale, co-president and chief marketing and merchandising officer. "I think the new prototype will give us a lot of new concepts to put into stores."
Sales for the first quarter, ended April 29, were $998.5 million, down 0.4% from the first quarter of 2005. Same-store sales decreased 0.1% from the first quarter of 2005, an improvement from the 0.8% decrease posted in 2005. The company reported a net loss of $5.4 million for the quarter, up from $2.1 million in the same period last year. Excluding expenses related to Pathmark's review of strategic alternatives, the company posted a loss of $4.2 million for the quarter, compared with a $1.6 million loss last year.
Even so, Standley said that the figures were improvements over third- and fourth-quarter 2005 results. For example, shrinkage has been reduced markedly from the second half of 2005, he noted. "This is another busy quarter at Pathmark, and we're making progress," he said.
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