Ingles Markets, Inc. engages in the operation of a supermarket chain in Georgia, North Carolina, Tennessee, Virginia, and Alabama. It offers its products through the following categories: grocery, non-foods, perishables and other. The grocery products comprises of groceries, dairy, and frozen foods. The non-foods products include alcoholic beverages, tobacco, pharmacy, health, and video. The perishables products include meat, produce, deli and bakery. The company was founded by Robert P. Ingle in 1963 and is headquartered in Black Mountain, NC.
Ingles operates on a 52- or 53-week fiscal year ending on the last Saturday in September. The consolidated statements of income for the fiscal years ended September 28, 2019, September 29, 2018 and September 30, 2017, consisted of 52, 52 and 53 weeks of operations, respectively.
Comparable store sales are defined as sales by grocery stores in operation for five full fiscal quarters. The Company has an ongoing renovation and expansion plan to modernize the appearance and layout of its existing stores. Sales from replacement stores, major remodels and the addition of fuel stations to existing stores are included in the comparable store sales calculation from the date of completion of the replacement, remodel or addition. A replacement store is a new store that is opened to replace an existing nearby store that is closed. A major remodel entails substantial remodeling of an existing store and may include additional retail square footage. For the fiscal years ended September 28, 2019 and September 29, 2018 comparable store sales each included 196 stores. Weighted average retail square footage added to comparable stores due to replacement and remodeled stores was approximately 300 for the fiscal year ended September 28, 2019 and 86,000 for the fiscal year ended September 29, 2018.
The Company’s fiscal year 2019 performance was strong, with increases in sales and gross margin driving increased pre-tax income. Last year, in fiscal year 2018, income tax credits totaling $37.3 million resulted in higher net income when compared with the current fiscal year ended September 28, 2019.