Village Super Market, Inc. recently released its 10-K report. The company operates 34 supermarkets in New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners, plus three Gourmet Garage specialty markets in New York City. It also sells online through its supermarket and specialty-market websites and apps, and markets products under the Wholesome Pantry, Bowl & Basket, Paperbird, Fairway and Gourmet Garage brands.
In Item 7, Village said fiscal 2026 sales rose to $2.406 billion from $2.321 billion in fiscal 2025, an increase driven mainly by 2.2% same-store sales growth and the opening of replacement stores in Watchung, New Jersey, and East Orange, New Jersey. Same-store sales improved because of digital sales growth, stronger fresh and pharmacy results, and continued gains at remodeled and replacement stores, partly offset by egg price deflation and cannibalization from the Watchung store opening.
Gross profit fell to 28.17% of sales from 28.57% a year earlier. Village attributed the decline to lower patronage dividends and other rebates from Wakefern, an unfavorable product mix and higher promotional spending, partly offset by improved departmental gross margins.
Operating and administrative expense rose to 24.06% of sales from 23.92%, while adjusted operating and administrative expense increased to 24.05% from 23.98%. The company said the higher expense ratio reflected increased legal and professional fees, utility, repair and maintenance costs, facility insurance and store pre-opening costs, partly offset by lower employee costs, lower advertising costs and less short-term rental income.
Operating income was 2.68% of sales in fiscal 2026, down from 3.11% in fiscal 2025. Net income declined to $52.455 million from $56.380 million, and adjusted net income fell to $52.688 million from $56.429 million. Village said the drop in adjusted net income was mainly due to lower gross margin and higher operating and administrative expense, partly offset by a lower effective tax rate.
Depreciation and amortization expense increased in fiscal 2026 because of capital expenditures. The company recorded no impairment charges in fiscal 2026, compared with $1.462 million in fiscal 2025. Interest expense fell on lower average debt balances, while interest income declined because of lower rates on notes receivable from Wakefern and demand deposits invested at Wakefern.
Village also said it closed its automated micro-fulfillment center in south New Jersey on September 1, 2024 and sold the related real estate in fiscal 2026. It opened an 83,000-square-foot ShopRite in Old Bridge, New Jersey, on March 17, 2024, a 72,000-square-foot ShopRite in Watchung on April 9, 2025, and a 69,000-square-foot ShopRite in East Orange on May 27, 2026. The company said nine of its stores are owned, its stores average 58,000 square feet, and it operates 21 in-store pharmacies. Following these announcements, the company's shares moved 0.23%, and are now trading at a price of $43.82. Check out the company's full 10-K submission here.
