Weis Markets

Sector: Food, drug and mass retailers Country of operation: US Key product categories: Grocery, liquor, pharmacy, and general merchandise Annual Metrics [caption id="attachment_151824" align="aligncenter" width="700"] Fiscal year 2021 ended December 25, 2021
*Trailing 12 months ended March 26, 2022
**Excluding fuel[/caption]   Summary Founded in 1912 and headquartered in Pennsylvania, US, Weis Markets offers alcohol, deli, floral, fuel, general merchandise and grocery products as well as pharmacy services. The company owns three facilities which process milk, ice cream and fresh meat products. The company markets its products under the brands Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go and Weis Nutri-Facts. As of March 26, 2022, Weis Markets operates 197 stores in the US. Company Analysis Coresight Research insight: Weis Markets is a mid-Atlantic grocery chain that operates conventional supermarket stores. It saw strong sales growth caused by pandemic-driven demand, with revenues of $4.22 billion in the fiscal year 2021 and $4.11 billion in 2020–the highest and second-highest in company history, according to the company. We believe these gains will help Weis Market position itself well for the future through technology investments, store remodeling and expansion, among other capital expenditures. Though the company continues to innovate and remain relevant to industry trends, it relies on marketplace delivery platforms Shipt and DoorDash to fulfill its e-commerce orders. As we have noted in our sector coverage, maintaining control of customer and vendor relationships in online grocery is critical for retailers. When retailers outsource to delivery providers, they also lose large amounts of customer data considered an important asset by most companies—including shopping frequency, product preferences and household information—which are subsequently collected and owned by delivery companies. This hinders retailers’ efforts to predict future demand and deploy data-driven resources to improve customers’ experiences, spending and loyalty.

Tailwinds	Headwinds
Strong connection with local community, which helps drive customer loyalty Opportunities for sustained expansion in plant-based and organic segments. Planned capital expenditure of $150 million in fiscal year 2022 to remodel existing stores and enhance its digital capabilities.	Heightened competition from Aldi and Lidl, which are expanding in the same geographic markets. Competitive pressures from other channels such as convenience stores, warehouse clubs, specialty retailers, supercenters and drugstore chains.

  Strategy Weis Markets has outlined the following strategic imperatives to futureproof its success in the coming years: 1. Establish a Sales-Driven Culture

• Focus on improved operating practices, sales and profit growth, increased productivity and positive cash flow. The company plans to drive sales include focused preparation and execution of sales programs, investing in new store sand remodels, and strategic acquisitions.

2. Build and Support Human Capital

• Create a sustainable competitive advantage through the selection, development and promotion of talented, motivated individuals. The company believes that a compelling employment brand is essential to attract and retain talent and execute strategic plans.

3. Become More Relevant to Consumers

• Develop and cultivate a culture where the company is continually “on trend” with its consumers now and where they are going next, by using consumer data to measure the value of programs offered and support consumer attraction and retention.

4. Creating Meaningful Differentiation

• Offer a strong reason for customers to choose the company over its competitors. The company has identified the customer shopping experience, product pricing and promotion, and merchandising strategies as critical components of future success.

5. Develop and Align Organizational Capabilities

• Continued investments in information technology systems to increase productivity, improve associate engagement and gain insights into customer behavior/shopping trends.

6. Focus on Sustainability Strategies

• Strive to be good stewards of the environment and make it an important part of its overall mission. The company will continue to focus on reducing its overall carbon footprint by reducing greenhouse gas emissions.

Revenue Breakdown (FY21) [caption id="attachment_148922" align="aligncenter" width="480"] *Consists primarily of groceries, dairy products, frozen foods, beer and wine, and general merchandise items, such as health and beauty care and household products
**Consists primarily of meats, seafood, fresh produce, floral, deli products, prepared foods and bakery products.[/caption]   Company Developments

Date	Development
May 19, 2022	Weis Markets announces plans to cut prices on its top-selling frozen items through its “Low, Low Price” program.
August 12, 2021	Weis Markets opens a Gas-N-Go fuel center in Shamokin, Pennsylvania.
May 5, 2021	Weis Markets opens two new stores in Lehig Valley, Pennsylavania, featuring beer and wine bars, fuel centers and pharmacies.
Feb 5, 2021	Weis Markets pens a new store in Martinsburg, West Virginia. The store includes a Grab & Go food bar and offers curbside pickup and delivery services
July 2, 2020	Weis Markets opens a beer and wine bar in Linglestown, Pennsylvania, featuring 400 varieties of beer and 540 domestic and imported wines.

  Management Team

• Jonathan H. Weis—Chairman, President and CEO
• Michael T. Lockard—CFO and Treasurer
• Kurt A. Schertle—COO

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Source: Company reports