Stater Bros. Markets’ strategy of drawing in customers by keeping its prices low — at the expense of boosting the bottom line — paid off by more sales and a higher customer count in 2013, a report released Wednesday, Dec. 18 found.
The San Bernardino-based supermarket chain, which has the most locations in Inland Southern California as well as the most private-sector employees, reported that it earned a $3.4 million profit in the fourth quarter of 2014, which ended on Sept. 29. That was a decline from $5 million in net profit for the same three-month period in 2012.
Stater Bros.’ fiscal year also ended on Sept. 29, and the company reported $30.4 million in net profits for the year, compared to $37.7 million in the same period in 2012. The numbers were slightly skewed because the 2012 quarter and fiscal year were longer than the same periods in 2013.
Sales were stronger for both the quarter and the year, and company officials were not worried about the small declines in profit. The company has reinvested in the business in several high-profile ways in the last 12 months.
“We have sacrificed gross profit and profitability in the short term,” Dave Harris, Stater Bros.’ executive vice president for finance, said on a conference call with bondholders and equity analysts Wednesday morning.
All told, Stater Bros. had $3.9 billion in sales for the year, an increase of more than 1.4 percent from 2012. Sales in the fourth quarter were $960.4 million.
Harris added that Stater Bros. has not needed to draw on its line of credit during this reporting period.
