Boston, MA 04/02/2014 (wallstreetpr) – Needless to say, The Fresh Market Inc (NASDAQ:TFM) is a specialty retailer deals in perishable products such as seafood, meat, prepared food and bakery. However, the company also operates non-perishable category which include dairy products and grocery.
The company operates a number of stores and it is also opening new ones while shuttering non-performing ones.
The Fresh Market Inc (NASDAQ:TFM) in the previous quarter delivered mixed results in that sales jumped more than 15 percent, but comparable store sales which are taken among retailers to forecast the future, rose marginally by 3.1 percent. The company is project sales to grow marginally in the current fiscal year. The disappointment for investors came in the figures for the full-year net income which decreased more than 20 percent.
Reacting to the poor results
The company noted, as everyone else could see, that the results were a disappointment at best. Thus, the management promised to do something. And the something which the management is doing to forestall future poor results involves doing many things, almost at the same time.
First and foremost, the management of The Fresh Market Inc (NASDAQ:TFM) is eliminating underperforming stores. Doing this is expected to result in reduced financial burden in terms of costs incurred in running the lackluster stores. Also, eliminating poor-performing stores allows the company to gain greater focus on stores with rewarding operations.
Opening fresh stores
As The Fresh Market Inc (NASDAQ:TFM) is doing away with underperforming stores in certain locations, new store locations and expansion of business is taking place across several regions. The past months have seen the company opening new stores and expanding operations in various locations where sales have already shown a rewarding trend or look promising in the future. This, way the company believes that the closure of underperforming stores will not impact its revenue as replacement stores come online.
Competition
In the business of retail store operation, competition is almost always the other name of the game. The Fresh Market Inc (NASDAQ:TFM) is facing intense competition and this is what has rendered some stores underperformers. In combating competition, the company is refreshing its shelves with eye-catching products while also focusing on more effective marketing strategies.
Investor Takeaway
If the latest developments at The Fresh Market Inc (NASDAQ:TFM) are anything to consider, the stock may be headed in the right direction to attaining strong earnings and price growth.
