10-Q

2023.10.28UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
	For the quarterly period ended October 28, 2023
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
Commission File No. 0-2633

VILLAGE SUPER MARKET, INC.

(Exact name of registrant as specified in its charter)

New Jersey		22-1576170
(State or other jurisdiction of incorporation or organization)		(I. R. S. Employer Identification No.)
733 Mountain Avenue, Springfield, New Jersey, 07081
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:		(973) 467-2200
Securities registered pursuant to Section 12(b) of the Act:
Class A common stock, no par value	VLGEA	The NASDAQ Stock Market
(Title of Class)	(Trading Symbol)	(Name of exchange on which registered)
Securities registered pursuant to Section 12(g) of the Act:  None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒   No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12-b2 of the Exchange Act.

Large accelerated filer  ☐	Accelerated filer  ☒
Non-accelerated filer    ☐  (Do not check if a smaller reporting company)	Smaller reporting company  ☒
	Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:
		December 6, 2023
	Class A Common Stock, No Par Value	10,603,764 Shares
	Class B Common Stock, No Par Value	4,203,748 Shares

VILLAGE SUPER MARKET, INC.

INDEX

PART I	PAGE NO.
FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets	3
Consolidated Statements of Operations	4
Consolidated Statements of Comprehensive Income	5
Consolidated Statements of Shareholders' Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.  Quantitative & Qualitative Disclosures about Market Risk	18
Item 4.  Controls and Procedures	19
PART II
OTHER INFORMATION
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 6.  Exhibits	20
Signatures	21

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PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	October 28, 2023		July 29, 2023
ASSETS
Current assets
Cash and cash equivalents	$	134,773	$	140,910
Merchandise inventories	47,492		44,515
Patronage dividend receivable	17,315		12,466
Notes receivable from Wakefern	32,211		31,483
Other current assets	17,683		17,313
Total current assets	249,474		246,687
Property, equipment and fixtures, net	281,611		277,310
Operating lease assets	268,790		274,100
Notes receivable from Wakefern	64,137		62,726
Investment in Wakefern	33,145		33,107
Investments in Real Estate Partnerships	14,968		13,155
Goodwill	24,190		24,190
Other assets	40,408		36,431
Total assets	$	976,723	$	967,706
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Operating lease obligations	$	20,937	$	20,389
Finance lease obligations	686		667
Notes payable to Wakefern	754		737
Current portion of debt	9,370		9,370
Accounts payable to Wakefern	81,178		77,033
Accounts payable and accrued expenses	34,960		31,441
Accrued wages and benefits	28,433		29,853
Income taxes payable	6,881		9,483
Total current liabilities	183,199		178,973
Long-term debt
Operating lease obligations	262,220		266,683
Finance lease obligations	20,390		20,623
Notes payable to Wakefern	1,566		1,686
Long-term debt	70,039		72,426
Total long-term debt	354,215		361,418
Pension liabilities	5,005		4,893
Other liabilities	15,059		12,256
Commitments and contingencies (Note 5)
Shareholders' equity
Preferred stock, no par value: Authorized 10,000 shares, none issued	—		—
Class A common stock, no par value: Authorized 20,000 shares; issued 11,568 shares at October 28, 2023 and 11,563 shares at July 29, 2023	77,103		76,179
Class B common stock, no par value: Authorized 20,000 shares; issued and outstanding 4,204 shares at October 28, 2023 and July 29, 2023	683		683
Retained earnings	351,732		343,497
Accumulated other comprehensive income	8,836		8,134
Less treasury stock, Class A, at cost: 944 shares at October 28, 2023 and 912 shares at July 29, 2023	(19,109)		(18,327)
Total shareholders’ equity	419,245		410,166
Total liabilities and shareholders’ equity	$	976,723	$	967,706

See notes to consolidated financial statements.

3

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)
	13 Weeks Ended
	October 28, 2023		October 29, 2022
Sales	$	536,354	$	519,689
Cost of sales	383,406		370,404
Gross profit	152,948		149,285
Operating and administrative expense	130,292		125,562
Depreciation and amortization	8,506		8,547
Operating income	14,150		15,176
Interest expense	(1,064)		(1,087)
Interest income	3,825		1,968
Income before income taxes	16,911		16,057
Income taxes	5,326		4,976
Net income	$	11,585	$	11,081
Net income per share:
Class A common stock:
Basic	$	0.87	$	0.85
Diluted	$	0.78	$	0.76
Class B common stock:
Basic	$	0.56	$	0.55
Diluted	$	0.56	$	0.55

See notes to consolidated financial statements.

4

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited)
	13 Weeks Ended
	October 28, 2023		October 29, 2022
Net income	$	11,585	$	11,081
Other comprehensive income:
Unrealized gains on interest rate swaps, net of tax (1)	777		2,765
Amortization of pension actuarial gain, net of tax (2)	(75)		(96)
Comprehensive income	$	12,287	$	13,750

(1)Amount is net of tax of $357 and $1,242 for the 13 weeks ended October 28, 2023 and October 29, 2022, respectively.

(2)Amounts are net of tax of $34 and $43 for the 13 weeks ended October 28, 2023 and October 29, 2022, respectively. All amounts are reclassified from accumulated other comprehensive income to operating and administrative expense.

See notes to consolidated financial statements.

5

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands) (Unaudited)
	13 Weeks Ended October 28, 2023 and October 29, 2022
	Class A Common Stock			Class B Common Stock					Accumulated Other Comprehensive Income (Loss)		Treasury Stock Class A			Total Shareholders' Equity
	Shares Issued	Amount		Shares Issued	Amount		Retained Earnings				Shares	Amount
Balance, July 29, 2023	11,563	$	76,179	4,204	$	683	$	343,497	$	8,134	912	$	(18,327)	$	410,166
Net income	—	—		—	—		11,585		—		—	—		11,585
Other comprehensive loss, net of tax of $323	—	—		—	—		—		702		—	—		702
Dividends	—	—		—	—		(3,350)		—		—	—		(3,350)
Treasury stock purchases	—	—		—	—		—		—		32	(782)		(782)
Restricted shares forfeited	(9)	(28)		—	—		—		—		—	—		(28)
Share-based compensation expense	14	952		—	—		—		—		—	—		952
Balance, October 28, 2023	11,568	$	77,103	4,204	$	683	$	351,732	$	8,836	944	$	(19,109)	$	419,245
Balance, July 30, 2022	10,971	$	72,891	4,294	$	697	$	306,974	$	6,135	752	$	(14,588)	$	372,109
Net income	—	—		—	—		11,081		—		—	—		11,081
Other comprehensive income, net of tax of $1,199	—	—		—	—		—		2,669		—	—		2,669
Dividends	—	—		—	—		(3,252)		—		—	—		(3,252)
Share-based compensation expense	—	608		—	—		—		—		—	—		608
Balance, October 29, 2022	10,971	$	73,499	4,294	$	697	$	314,803	$	8,804	752	$	(14,588)	$	383,215

See notes to consolidated financial statements.

6

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	13 Weeks Ended
	October 28, 2023		October 29, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	11,585	$	11,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,967		8,950
Non-cash share-based compensation	924		608
Deferred taxes	(207)		103
Provision to value inventories at LIFO	466		538
Gain on sale of property, equipment and fixtures	(39)		(17)
Changes in assets and liabilities:
Merchandise inventories	(3,443)		(4,893)
Patronage dividend receivable	(4,849)		(4,745)
Accounts payable to Wakefern	4,216		3,760
Accounts payable and accrued expenses	3,954		3,389
Accrued wages and benefits	(1,420)		(697)
Income taxes receivable / payable	(2,602)		4,492
Other assets and liabilities	827		(550)
Net cash provided by operating activities	18,379		22,019
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(13,773)		(9,813)
Proceeds from the sale of assets	39		17
Investment in notes receivable from Wakefern	(2,139)		(59,767)
Maturity of notes receivable from Wakefern	—		28,850
Investment in real estate partnership	(1,813)		(1,276)
Net cash used in investing activities	(17,686)		(41,989)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	—		10,000
Principal payments of long-term debt	(2,698)		(2,352)
Debt issuance costs	—		(11)
Dividends	(3,350)		(3,252)
Treasury stock purchases	(782)		—
Net cash (used in) provided by financing activities	(6,830)		4,385
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(6,137)		(15,585)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	140,910		134,832
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	134,773	$	119,247
SUPPLEMENTAL DISCLOSURES OF CASH  PAYMENTS MADE FOR:
Interest	$	1,064	$	1,087
Income taxes	$	8,135	$	380
NONCASH SUPPLEMENTAL DISCLOSURES:
Investment in Wakefern and increase in notes payable to Wakefern	$	38	$	—
Capital expenditures included in accounts payable and accrued expenses	$	5,086	$	5,427
Lease obligations obtained in exchange for right-of-use assets	$	908	$	—

See notes to consolidated financial statements.

7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands) (Unaudited)

1. BASIS OF PRESENTATION and ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the consolidated financial position as of October 28, 2023 and the consolidated statements of operations, comprehensive income and cash flows for the 13 weeks ended October 28, 2023 and October 29, 2022 of Village Super Market, Inc. (“Village” or the “Company”).

The significant accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements in the July 29, 2023 Village Super Market, Inc. Annual Report on Form 10-K, which should be read in conjunction with these financial statements.  The results of operations for the period ended October 28, 2023 are not necessarily indicative of the results to be expected for the full year.

Disaggregated Revenues

The following table presents the Company's sales by product categories during each of the periods indicated:

	13 Weeks Ended
	October 28, 2023				October 29, 2022
	Amount		%		Amount		%
Center Store (1)	$	320,924	59.8	%	$	311,824	60.0	%
Fresh (2)	193,520		36.1		189,008		36.4
Pharmacy	20,211		3.8		17,169		3.3
Other (3)	1,699		0.3		1,688		0.3
Total Sales	$	536,354	100.0	%	$	519,689	100.0	%

(1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor.

(2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral.

(3) Consists primarily of sales related to other income streams, including service fees related to digital sales, gift card and lottery commissions and wholesale sales.

2. MERCHANDISE INVENTORIES

    At October 28, 2023 and July 29, 2023, approximately 63% and 64%, respectively, of merchandise inventories are valued by the LIFO method while the balance is valued by FIFO.  If the FIFO method had been used for the entire inventory, inventories would have been $21,704 and $21,238 higher than reported at October 28, 2023 and July 29, 2023, respectively.

3. NET INCOME PER SHARE

    The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

    The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

8

    Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The table below reconciles Net income to Net income available to Class A and Class B shareholders:

	13 Weeks Ended
	October 28, 2023		October 29, 2022
Net income	$	11,585	$	11,081
Distributed and allocated undistributed Net income to unvested restricted shareholders	440		304
Net income available to Class A and Class B shareholders	$	11,145	$	10,777

    The tables below reconcile the numerators and denominators of basic and diluted Net income per share for all periods presented.

	13 Weeks Ended
	October 28, 2023
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,782	$	2,363
Conversion of Class B to Class A shares	2,363		—
Net income allocated, diluted	$	11,145	$	2,363
Denominator:
Weighted average shares outstanding, basic	10,146		4,204
Conversion of Class B to Class A shares	4,204		—
Weighted average shares outstanding, diluted	14,350		4,204
	13 Weeks Ended
	October 29, 2022
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,402	$	2,376
Conversion of Class B to Class A shares	2,376		—
Net income allocated, diluted	$	10,778	$	2,376
Denominator:
Weighted average shares outstanding, basic	9,863		4,294
Conversion of Class B to Class A shares	4,294		—
Weighted average shares outstanding, diluted	14,157		4,294

    Outstanding stock options to purchase Class A shares of 86 and 93 were excluded from the calculation of diluted net income per share at October 28, 2023 and October 29, 2022, respectively, as a result of their anti-dilutive effect. In addition, 507 and 363 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at October 28, 2023 and October 29, 2022, respectively, due to their anti-dilutive effect.

9

4. RELATED PARTY INFORMATION

    A description of the Company’s transactions with Wakefern, its principal supplier, and with other related parties is included in the Company’s Annual Report on Form 10-K for the year ended July 29, 2023.  

    On August 15, 2022, notes receivable due from Wakefern of $28,850 that earned interest at the prime rate plus 1.25% matured. The Company invested all of the proceeds received in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on August 15, 2027. On September 28, 2022, the Company invested an additional $30,000 in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on September 28, 2027. At October 28, 2023, the Company held variable rate notes receivable due from Wakefern of $32,211 that earn interest at the prime rate plus .75% and mature on February 15, 2024, $31,559 that earn interest at the prime rate plus .50% and mature on August 15, 2027 and $32,578 that earn interest at the prime rate plus .50% and mature on September 28, 2027. Wakefern has the right to prepay these notes at any time. Under certain conditions, the Company can require Wakefern to prepay the notes, although interest earned since inception would be reduced as if it was earned based on overnight money market rates as paid by Wakefern on demand deposits.

    Included in cash and cash equivalents at October 28, 2023 and July 29, 2023 are $116,520 and $122,028, respectively, of demand deposits invested at Wakefern at overnight money market rates.

On April 28, 2022, the Company entered into a partnership agreement for 30% interest in the development of a retail center in Old Bridge, New Jersey, which includes a Village replacement store with an operating lease obligation of $4,304 as of October 28, 2023.Village will fund its share of project costs estimated to be $15,000 to $20,000 over the two to three year life of the project. As of October 28, 2023, Village has invested $12,688 into the real estate partnership, which is accounted for as an equity method investment included in Investments in Real Estate Partnerships on the Consolidated Balance Sheet.

    There have been no other significant changes in the Company’s relationships or nature of transactions with related parties during the 13 weeks ended October 28, 2023.

5. COMMITMENTS and CONTINGENCIES

    The Company is involved in litigation incidental to the normal course of business. Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company.

6. DEBT

Long-term debt consists of:

	October 28, 2023		July 29, 2023
Secured term loans	$	52,846	$	53,912
Unsecured term loan	21,443		22,702
New Market Tax Credit Financing	5,120		5,182
Total debt, excluding obligations under leases	79,409		81,796
Less current portion	9,370		9,370
Total long-term debt, excluding obligations under leases	$	70,039	$	72,426

Credit Facility

The Company has a credit facility (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”). The principal purpose of the Credit Facility is to finance general corporate and working capital requirements, Village’s fiscal 2020 acquisition of certain Fairway assets and certain capital expenditures. Among other things, the Credit Facility provides for:

10

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $75,000. Indebtedness under this agreement bears interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 1.10% and expires on May 6, 2025.

•An unsecured $25,500 term loan issued on May 12, 2020, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable SOFR plus 1.46%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .26% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.72% on the term loan.

•A secured $50,000 term loan issued on September 1, 2020 repayable in equal monthly installments based on a fifteen-year amortization schedule through September 1, 2035 and bearing interest at the applicable SOFR plus 1.61%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .57% per annum through September 1, 2035, resulting in a fixed effective interest rate of 2.18% on the term loan. The term loan is secured by real properties of Village Super Market, Inc. and its subsidiaries, including the sites of three Village stores.

•A secured $7,350 term loan issued on January 28, 2022 repayable in equal monthly installments based on a fifteen-year amortization schedule through January 28, 2037 and bearing interest at the applicable SOFR plus 1.50%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at 1.41% per annum through January 28, 2037, resulting in a fixed effective interest rate of 2.91% on the term loan. The term loan is secured by the Galloway store shopping center acquired in the first quarter of fiscal 2022.

On September 1, 2022, the Company amended the Credit Facility due to the execution of a seven year $10,000 unsecured term loan. The unsecured term loan is repayable in equal monthly installments based on a seven year amortization schedule through September 4, 2029 and bears interest at the applicable SOFR plus 1.35%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 2.95%, resulting in a fixed effective rate of 4.30%. This loan qualified for an interest rate subsidy program with Wakefern on financing related to certain capital expenditure projects. Net of the subsidy, the Company will pay interest at a fixed effective rate of 2.30%.

On January 27, 2023, the Company purchased the Vineland store shopping center for $9,500. As part of the purchase, the Company amended the Credit Facility due to the execution of a fifteen year $7,125 term loan secured by the Vineland store shopping center. The secured term loan is repayable in equal monthly installments based on a fifteen year amortization schedule through January 27, 2038 and bears interest at the applicable SOFR plus 1.75%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 3.59%, resulting in a fixed effective rate of 5.34%.

The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at October 28, 2023), which secure obligations for store leases and construction performance guarantees to municipalities. The Credit Facility contains covenants that, among other conditions, require a minimum tangible net worth, a minimum fixed charge coverage ratio and a maximum adjusted debt to EBITDAR ratio. The Company was in compliance with all covenants of the credit agreement at October 28, 2023. As of October 28, 2023, $67,664 remained available under the unsecured revolving line of credit.

New Markets Tax Credit Financing

On December 29, 2017, the Company entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (“Wells Fargo”) under a qualified New Markets Tax Credit (“NMTC”) program related to the construction of a new store in the Bronx, New York. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments.

In connection with the financing, the Company loaned $4,835 to VSM Investment Fund, LLC (the "Investment Fund") at an interest rate of  1.403% per year and with a maturity date of December 31, 2044.  Repayments on the loan commence in March 2025. Wells Fargo contributed $2,375 to the Investment Fund and, by virtue of such contribution, is entitled to substantially all of the tax benefits derived from the NMTC. The Investment Fund is a wholly owned subsidiary of Wells Fargo.  The loan to the Investment Fund is recorded in Other assets in the consolidated balance sheets.

The Investment Fund then contributed the proceeds to a CDE, which, in turn, loaned combined funds of $6,563, net of debt issuance costs, to Village Super Market of NY, LLC, a wholly-owned subsidiary of the Company, at an interest rate

11

of 1.000% per year with a maturity date of December 31, 2051. These loans are secured by the leasehold improvements and equipment related to the construction of the Bronx store. Repayment of the loans commences in March 2025. The proceeds of the loans from the CDE were used to partially fund the construction of the Bronx store. The Notes payable related to New Markets Tax Credit, net of debt issuance costs, are recorded in long-term debt in the consolidated balance sheets.

The NMTC is subject to 100% recapture for a period of seven years. The Company is required to be in compliance with various regulations and contractual provisions that apply to the New Markets Tax Credit arrangement. Noncompliance could result in Wells Fargo's projected tax benefits not being realized and, therefore, require the Company to indemnify Wells Fargo for any loss or recapture of NMTCs. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase Wells Fargo's interest in the Investment Fund. The value attributed to the put/call is de minimis. We believe that Wells Fargo will exercise the put option in December 2024, at the end of the recapture period, that will result in a net benefit to the Company of $1,728. The Company is recognizing the net benefit over the seven-year compliance period in operating and administrative expense.

7. DERIVATIVES AND HEDGING ACTIVITIES

The Company is exposed to interest rate risk arising from fluctuations in SOFR related to the Company’s Credit Facility. The Company manages exposure to this risk and the variability of related cash flows primarily by the use of derivative financial instruments, specifically, interest rate swaps.

The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

As of October 28, 2023, the Company had five interest rate swaps with an aggregate initial notional value of $99,975 to hedge the variable cash flows associated with variable-rate loans under the Company's Credit Facility. The interest rate swaps were executed for risk management and are not held for trading purposes. The objective of the interest rate swaps is to hedge the variability of cash flows resulting from fluctuations in the reference rate. The swaps replaced the applicable reference rate with fixed interest rates and payments are settled monthly when payments are made on the variable-rate loans. The Company's derivatives qualify and have been designated as cash flow hedges of interest rate risk. The gain or loss on the derivative is recorded in Accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $781 and $243 during the 13 weeks ended October 28, 2023 and October 29, 2022, respectively, from Accumulated other comprehensive income to Interest expense.

The notional value of the interest rate swaps were $74,570 as of October 28, 2023. The fair value of interest rate swaps recorded in Other assets in the consolidated balance sheets is $10,269 as of October 28, 2023.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(Dollars in Thousands)

OVERVIEW

    Village Super Market, Inc. (the “Company” or “Village”) was founded in 1937.  Village operates a chain of 34 supermarkets in New Jersey (26), New York (6), Maryland (1) and Pennsylvania (1) under the ShopRite and Fairway banners and three Gourmet Garage specialty markets in New York City. Village is the second largest member of Wakefern Food Corporation (“Wakefern”), the nation’s largest retailer-owned food cooperative and owner of the ShopRite, Fairway and Gourmet Garage names. As further described in the Company’s Form 10-K, this ownership interest in Wakefern provides Village with many of the economies of scale in purchasing, distribution, advanced retail technology, marketing and advertising associated with chains of greater size and geographic coverage.

The supermarket industry is highly competitive and characterized by narrow profit margins. The Company competes directly with multiple retail formats, both in-store and online, including national, regional and local supermarket chains as well as warehouse clubs, supercenters, drug stores, discount general merchandise stores, fast food chains, restaurants, dollar stores and convenience stores. The Company competes by providing a superior customer service experience, competitive pricing and a broad range of consistently available quality products. The ShopRite Price Plus and Fairway Insider customer loyalty programs enable Village to offer continuity programs, focus on target marketing initiatives and to offer discounts and attach digital coupons directly to a customer's loyalty card.

Online grocery ordering for in-store pick up or home delivery is available in all of our ShopRite stores through shoprite.com, the ShopRite app or through third party service providers. Additionally, the ShopRite Order Express app enables customers to pre-order deli, catering, specialty occasion cakes and other items. Online ordering for home delivery is available in all Fairway stores through fairwaymarket.com, the Fairway app or through third party service providers. Online ordering for home delivery is available in all Gourmet Garage stores through gourmetgarage.com, the Gourmet Garage app or through third party service providers.

To promote production efficiency, product quality and consistency, the Company operates a centralized commissary supplying certain products in deli, bakery, prepared foods and other perishable product categories to all stores. The Company also owns and operates an automated micro-fulfillment center to facilitate online order fulfillment for the south New Jersey stores.

The Company’s stores, eight of which are owned, average 54,000 total square feet. These larger store sizes enable the Company to offer a wide variety of national branded and locally sourced food products, including grocery, meat, produce, dairy, deli, seafood, prepared foods, bakery and frozen foods as well as non-food product offerings, including health and beauty care, general merchandise, liquor and 21 in-store pharmacies. Most product departments include high-quality, competitively priced own-brand offerings under the Wholesome Pantry, Bowl & Basket, Paperbird and Fairway brands. Our Fairway Markets offer a one-stop destination shopping experience with an emphasis on fresh, unique, and high quality offerings paired with an expansive variety of natural, organic, specialty and gourmet products. Our Gourmet Garage specialty markets offer organic produce, signature soups and prepared foods, high-quality meat and seafood, charcuterie and gourmet cheeses, artisan baked bread and pastries, chef-prepared meals to go and pantry staples.

The Company has an ongoing program to evaluate, upgrade and expand its supermarket chain.  This program has included store remodels as well as the opening or acquisition of additional stores.  When remodeling, Village has sought, whenever possible, to increase the amount of selling space in its stores. On August 14, 2022, we converted the Pelham, NY store from the Fairway banner to the ShopRite banner and a major remodel of the store was completed in late October 2022.

On November 1, 2023, Village closed an 8,400 sq. ft. Gourmet Garage store located in New York City. The impact associated with the closure and ongoing results of operating were not material to Village’s consolidated financial statements.

We consider a variety of indicators to evaluate our performance, such as same store sales; percentage of total sales by department (mix); shrink; departmental gross profit percentage; sales per labor hour; units per labor hour; and hourly labor rates.

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RESULTS OF OPERATIONS

    The following table sets forth the major components of the Consolidated Statements of Operations as a percentage of sales:

	13 Weeks Ended
	October 28, 2023		October 29, 2022
Sales	100.00	%	100.00	%
Cost of sales	71.48		71.27
Gross profit	28.52		28.73
Operating and administrative expense	24.29		24.16
Depreciation and amortization	1.59		1.65
Operating income	2.64		2.92
Interest expense	(0.20)		(0.21)
Interest income	0.71		0.38
Income before income taxes	3.15		3.09
Income taxes	0.99		0.96
Net income	2.16	%	2.13	%

    Sales.  Sales were $536,354 in the 13 weeks ended October 28, 2023, an increase of 3.2% compared to the 13 weeks ended October 29, 2022.  Sales increased due to an increase in same store sales of 2.0% and increased sales due to the remodel and conversion of the Pelham, NY Fairway to the ShopRite banner on August 15, 2022. Same store sales increased due primarily to retail price inflation. New stores, replacement stores and stores with banner changes are included in same store sales in the quarter after the store has been in operation for four full quarters. Store renovations and expansions are included in same store sales immediately.

    Gross Profit.  Gross profit as a percentage of sales decreased .21% in the 13 weeks ended October 28, 2023 compared to the 13 weeks ended October 29, 2022 due primarily to higher promotional spending (.22%), increased warehouse assessment charges from Wakefern (.20%) and an unfavorable change in product mix (.14%) partially offset by increased departmental gross margin percentages (.36%). Department gross margins increased due primarily to improvements in commissary operations.

Operating and Administrative Expense.  Operating and administrative expense as a percentage of sales increased .13% in the 13 weeks ended October 28, 2023 compared to the 13 weeks ended October 29, 2022 due primarily to increased facility repair and maintenance costs (.10%), security costs (.07%) and external fees associated with digital sales (.05%) partially offset by lower labor costs and fringe benefits (.10%).

Depreciation and Amortization.  Depreciation and amortization expense in the 13 weeks ended October 28, 2023 was flat compared to the 13 weeks ended October 29, 2022.

Interest Expense.  Interest expense in the 13 weeks ended October 28, 2023 was flat compared to the 13 weeks ended October 29, 2022.

Interest Income.  Interest income increased in the 13 weeks ended October 28, 2023 compared to the 13 weeks ended October 29, 2022 due primarily to higher interest rates and larger amounts invested in variable rate notes receivable from Wakefern and demand deposits at Wakefern.

Income Taxes.  The effective income tax rate was 31.5% in the 13 weeks ended October 28, 2023 compared to 31.0% in the 13 weeks ended October 29, 2022.

Net Income.  Net Income was $11,585 in the 13 weeks ended October 28, 2023 compared to $11,081 in the 13 weeks ended October 29, 2022. Net income increased 5% compared to the prior year due primarily to the increase in sales of 3.2% and higher interest income.

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CRITICAL ACCOUNTING POLICIES

    Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations.  These policies require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.  The Company’s critical accounting policies relating to the impairment of long-lived assets, goodwill and indefinite-lived intangible assets and accounting for patronage dividends earned as a stockholder of Wakefern, are described in the Company’s Annual Report on Form 10-K for the year ended July 29, 2023. As of October 28, 2023, there have been no changes to the critical accounting policies contained therein.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $18,379 in the 13 weeks ended October 28, 2023 compared to $22,019 in the corresponding period of the prior year.  The change in cash flows from operating activities in fiscal 2024 was primarily due to changes in working capital. Working capital changes, including Other assets and liabilities, decreased cash flows from operating activities by $3,317 in fiscal 2024 compared to an increase of $756 in fiscal 2023. The change in impact of working capital is due primarily to the timing of tax payments.

During the 13 weeks ended October 28, 2023, Village used cash to fund capital expenditures of $13,773, dividends of $3,350, principal payments of long-term debt of $2,698, share repurchases of $782, an investment in a real estate partnership for the development of a retail center in Old Bridge, New Jersey of $1,813 and additional net investments of $2,139 in notes receivable from Wakefern.  Capital expenditures primarily include costs associated with the construction of the Old Bridge replacement store scheduled to open in fiscal 2024, the minor remodel of the Millburn, NJ ShopRite and various technology, equipment and facility upgrades.

    We have budgeted $85,000 for capital expenditures in fiscal 2024.   Planned expenditures include costs for construction of the Old Bridge replacement store scheduled to open in fiscal 2024 and two other replacement stores scheduled to open in fiscal 2025, potential real estate purchases, several smaller store remodels and merchandising initiatives and various technology, equipment and facility upgrades. The Company’s primary sources of liquidity in fiscal 2024 are expected to be cash and cash equivalents on hand at October 28, 2023 and operating cash flow generated in fiscal 2024.

On April 28, 2022 the Company entered into a partnership agreement for a 30% interest in the development of a retail center in Old Bridge, New Jersey, which includes a Village replacement store with an operating lease obligation of $4,304 as of October 28, 2023. Village will fund its share of project costs estimated to be $15,000 to $20,000 over the two to three year life of the project. As of October 28, 2023, Village has invested $12,688 into the real estate partnership, which is accounted for as an equity method investment included in Investments in Real Estate Partnerships on the consolidated balance sheet.

On August 15, 2022, notes receivable due from Wakefern of $28,850 that earned interest at the prime rate plus 1.25% matured. The Company invested all of the proceeds received in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on August 15, 2027. On September 28, 2022, the Company invested an additional $30,000 in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on September 28, 2027.

At October 28, 2023, the Company held variable rate notes receivable due from Wakefern of $32,211 that earn interest at the prime rate plus .75% and mature on February 15, 2024, $31,559 that earn interest at the prime rate plus .50% and mature on August 15, 2027 and $32,578 that earn interest at the prime rate plus .50% and mature on September 28, 2027. Wakefern has the right to prepay these notes at any time. Under certain conditions, the Company can require Wakefern to prepay the notes, although interest earned since inception would be reduced as if it was earned based on overnight money market rates as paid by Wakefern on demand deposits.

    Working capital was $66,275 at October 28, 2023 compared to $67,714 at July 29, 2023. Working capital ratios at the same dates were 1.36 and 1.38 to one, respectively.  The Company’s working capital needs are reduced, since inventories are generally sold by the time payments to Wakefern and other suppliers are due.

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Credit Facility

The Company has a credit facility (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”). The principal purpose of the Credit Facility is to finance general corporate and working capital requirements, Village’s fiscal 2020 acquisition of certain Fairway assets and certain capital expenditures. Among other things, the Credit Facility provides for:

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $75,000. Indebtedness under this agreement bears interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 1.10% and expires on May 6, 2025.

•An unsecured $25,500 term loan issued on May 12, 2020, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable SOFR plus 1.46%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .26% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.72% on the term loan.

•A secured $50,000 term loan issued on September 1, 2020 repayable in equal monthly installments based on a fifteen-year amortization schedule through September 1, 2035 and bearing interest at the applicable SOFR plus 1.61%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .57% per annum through September 1, 2035, resulting in a fixed effective interest rate of 2.18% on the term loan. The term loan is secured by real properties of Village Super Market, Inc. and its subsidiaries, including the sites of three Village stores.

•A secured $7,350 term loan issued on January 28, 2022 repayable in equal monthly installments based on a fifteen-year amortization schedule through January 28, 2037 and bearing interest at the applicable SOFR plus 1.50%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at 1.41% per annum through January 28, 2037, resulting in a fixed effective interest rate of 2.91% on the term loan. The term loan is secured by the Galloway store shopping center acquired for $9,800 in the first quarter of fiscal 2022.

On September 1, 2022, the Company amended the Credit Facility due to the execution of a seven year $10,000 unsecured term loan. The unsecured term loan is repayable in equal monthly installments based on a seven year amortization schedule through September 4, 2029 and bears interest at the applicable SOFR plus 1.35%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 2.95%, resulting in a fixed effective rate of 4.30%. This loan qualified for an interest rate subsidy program with Wakefern on financing related to certain capital expenditure projects. Net of the subsidy, the Company will pay interest at a fixed effective rate of 2.30%.

On January 27, 2023, the Company purchased the Vineland store shopping center for $9,500. As part of the purchase, the Company amended the Credit Facility due to the execution of a fifteen year $7,125 term loan secured by the Vineland store shopping center. The secured term loan is repayable in equal monthly installments based on a fifteen year amortization schedule through January 27, 2038 and bears interest at the applicable SOFR plus 1.75%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 3.59%, resulting in a fixed effective rate of 5.34%.

Based on current trends, the Company believes cash and cash equivalents on hand at October 28, 2023, operating cash flow and availability under our Credit Facility are sufficient to meet our liquidity needs for the next twelve months and for the foreseeable future beyond the next twelve months.

    There have been no other substantial changes as of October 28, 2023 to the contractual obligations and commitments discussed in the Company’s Annual Report on Form 10-K for the year ended July 29, 2023.

OUTLOOK

    This Form 10-Q contains certain forward-looking statements about Village’s future performance. These statements are based on management’s assumptions and beliefs in light of information currently available.  Such statements relate to, for example:  same store sales; economic conditions; expected pension plan contributions; projected capital expenditures; cash flow requirements; inflation expectations; and legal matters; and are indicated by words such as “will,” “expect,”  “should,” “intend,” “anticipates,” “believes” and similar words or phrases.  The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from the results expressed, suggested or implied by such forward-

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looking statements.  The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof.

•We expect the increase in same store sales to range from 1.0% to 3.0% in fiscal 2024.

•We have budgeted $85,000 for capital expenditures in fiscal 2024. Planned expenditures include costs for construction of the Old Bridge replacement store scheduled to open in fiscal 2024 and two other replacement stores scheduled to open in fiscal 2025, potential real estate purchases, several smaller store remodels and merchandising initiatives and various technology, equipment and facility upgrades.

•The Board’s current intention is to continue to pay quarterly dividends in 2024 at the most recent rate of $.25 per Class A and $.1625 per Class B share.

•We believe cash and cash equivalents on hand, operating cash flow and the Company's Credit Facility will be adequate to meet anticipated requirements for working capital, capital expenditures and debt payments for the foreseeable future.

•We expect our effective income tax rate in fiscal 2024 to be in the range of 31.0% - 32.0%.

Various uncertainties and other factors could cause actual results to differ from the forward-looking statements contained in this report. These include:

•The supermarket business is highly competitive and characterized by narrow profit margins.  Results of operations may be materially adversely impacted by competitive pricing and promotional programs, industry consolidation and competitor store openings.  Village competes directly with multiple retail formats both in-store and online, including national, regional and local supermarket chains as well as warehouse clubs, supercenters, drug stores, discount general merchandise stores, fast food chains, restaurants, dollar stores and convenience stores. Some of these competitors have greater financial resources, lower merchandise acquisition costs and lower operating expenses than we do.  

•The Company’s stores are concentrated in New Jersey, New York, Pennsylvania and Maryland. We are vulnerable to economic downturns in these states in addition to those that may affect the country as a whole. Economic conditions such as inflation, deflation, interest rate fluctuations, movements in energy costs, social programs, minimum wage legislation, unemployment rates, disturbances due to social unrest and changing demographics may adversely affect our sales and profits.

•Village purchases substantially all of its merchandise from Wakefern. In addition, Wakefern provides the Company with support services in numerous areas including advertising, workers' compensation, liability and property insurance, supplies, certain equipment purchasing, coupon processing, certain financial accounting applications, retail technology support, and other store services. Further, Village receives patronage dividends and other product incentives from Wakefern and also has demand deposits and notes receivable due from Wakefern.

Any material change in Wakefern’s method of operation or a termination or material modification of Village’s relationship with Wakefern could have an adverse impact on the conduct of the Company’s business and could involve additional expense for Village.  The failure of any Wakefern member to fulfill its obligations to Wakefern or a member’s insolvency or withdrawal from Wakefern could result in increased costs to the Company.  Additionally, an adverse change in Wakefern’s results of operations could have an adverse effect on Village’s results of operations.

•Approximately 92% of our employees are covered by collective bargaining agreements. Any work stoppages could have an adverse impact on our financial results. If we are unable to control health care and pension costs provided for in the collective bargaining agreements, we may experience increased operating costs.

•The Company could be adversely affected if consumers lose confidence in the safety and quality of the food supply chain.  The real or perceived sale of contaminated food products by us could result in a loss of consumer confidence and product liability claims, which could have a material adverse effect on our sales and operations.

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•Certain of the multi-employer plans to which we contribute are underfunded. As a result, we expect that contributions to these plans may increase. Additionally, the benefit levels and related items will be issues in the negotiation of our collective bargaining agreements. Under current law, an employer that withdraws or partially withdraws from a multi-employer pension plan may incur a withdrawal liability to the plan, which represents the portion of the plan’s underfunding that is allocable to the withdrawing employer under very complex actuarial and allocation rules. The failure of a withdrawing employer to fund these obligations can impact remaining employers. The amount of any increase or decrease in our required contributions to these multi-employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations, withdrawals by other participating employers and the actual return on assets held in the plans, among other factors.

•The Company uses a combination of insurance and self-insurance to provide for potential liability for workers’ compensation, automobile, general liability, property, director and officers’ liability, and certain employee health care benefits. Any projection of losses is subject to a high degree of variability. Changes in legal claims, trends and interpretations, variability in inflation rates, changes in the nature and method of claims settlement, benefit level changes due to changes in applicable laws, and insolvency of insurance carriers could all affect our financial condition, results of operations, or cash flows.

•Our long-lived assets, primarily store property, equipment and fixtures, are subject to periodic testing for impairment. Failure of our asset groups to achieve sufficient levels of cash flow could result in impairment charges on long-lived assets.

•Our goodwill and indefinite-lived intangible assets are tested at the end of each fiscal year, or more frequently if circumstances dictate, for impairment. Failure of acquired businesses to achieve their forecasted expectations could result in impairment charges to goodwill and indefinite-lived intangible assets.

•Our effective tax rate may be impacted by the results of tax examinations and changes in tax laws.

•Wakefern provides all members of the cooperative with information system support that enables us to effectively manage our business data, customer transactions, ordering, communications and other business processes.  These information systems are subject to damage or interruption from power outages, computer or telecommunications failures, computer viruses and related malicious software, catastrophic weather events, or human error.  Any material interruption of our or Wakefern’s information systems could have a material adverse impact on our results of operations.

Due to the nature of our business, personal information about our customers, vendors and associates is received and stored in these information systems. In addition, confidential information is transmitted through our online business at shoprite.com and through the ShopRite app. Unauthorized parties may attempt to access information stored in or to sabotage or disrupt these systems. Wakefern and the Company maintain substantial security measures to prevent and detect unauthorized access to such information, including utilizing third-party service providers for monitoring our networks, security reviews, and other functions. It is possible that computer hackers, cyber terrorists and others may be able to defeat the security measures in place at the Company, Wakefern or those of third-party service providers.

Any breach of these security measures and loss of confidential information, which could be undetected for a period of time, could damage our reputation with customers, vendors and associates, cause Wakefern and Village to incur significant costs to protect any customers, vendors and associates whose personal data was compromised, cause us to make changes to our information systems and could result in government enforcement actions and litigation against Wakefern and/or Village from outside parties. Any such breach could have a material adverse impact on our operations, consolidated financial condition, results of operations, and liquidity if the related costs to Wakefern and Village are not covered or are in excess of carried insurance policies. In addition, a security breach could require Wakefern and Village to devote significant management resources to address problems created by the security breach and restore our reputation.

RELATED PARTY TRANSACTIONS

    See note 4 to the unaudited consolidated financial statements for information on related party transactions.

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.  CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Exchange Act, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures at the end of the period.  This evaluation was carried out under the supervision, and with the participation, of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer.  Based upon that evaluation, the Company’s Chief Executive Officer, along with the Company’s Chief Financial Officer, concluded that the Company’s disclosure controls and procedures are effective.

    Disclosure controls and procedures are designed to ensure that information required to be disclosed in Company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in Company reports filed under the Exchange Act is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in the Company’s internal control over financial reporting during the quarter ended October 28, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

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PART II - OTHER INFORMATION

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2C.   ISSUER PURCHASES OF EQUITY SECURITIES

    The number and average price of shares purchased in each fiscal month of the first quarter of fiscal 2024 are set forth in the table below:

Period(1)	Total Number of Shares Purchased	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
July 30, 2023 to August 26, 2023	—	$—	—	$3,202,713
August 27, 2023 to September 23, 2023	—	$—	—	$3,202,713
September 24, 2023 to October 28, 2023	32,174	$24.32	32,174	$2,420,089
Total	32,174	$24.32	32,174	$2,420,089

(1)      The reported periods conform to our fiscal calendar.

(2)  Includes amount remaining under the $5.0 million repurchase program of the Company's Class A Common Stock authorized by the Board of Directors and announced on September 13, 2019 . Repurchases may be made from time-to-time through a variety of methods, including open market purchases and other negotiated transactions, including through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934.

ITEM 6.  EXHIBITS
Exhibit 31.1	Certification
Exhibit 31.2	Certification
Exhibit 32.1	Certification (furnished, not filed)
Exhibit 32.2	Certification (furnished, not filed)
Exhibit 99.1	Press Release
101 INS	XBRL Instance
101 SCH	XBRL Schema
101 CAL	XBRL Calculation
101 DEF	XBRL Definition
101 LAB	XBRL Label
101 PRE	XBRL Presentation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Village Super Market, Inc.
	Registrant
Dated: December 6, 2023	/s/ Robert P. Sumas
	Robert P. Sumas
	(Chief Executive Officer)
Dated: December 6, 2023	/s/ John Van Orden
	John Van Orden
	(Chief Financial Officer)

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EX-31.1

 Exhibit 31.1

I, Robert P. Sumas, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Village Super Market, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial  information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 6, 2023	/s/ Robert P. Sumas
	Robert P. Sumas
	Chief Executive Officer

EX-31.2

Exhibit 31.2

I, John Van Orden, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Village Super Market, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.
4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
5.	The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial  information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: December 6, 2023
	/s/ John Van Orden
	John Van Orden
	Chief Financial Officer &
	Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Village Super Market, Inc. (the “Company”) on Form 10-Q for the period ended October 28, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert P. Sumas, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert P. Sumas

Robert P. Sumas

Chief Executive Officer

December 6, 2023

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Village Super Market, Inc. (the “Company”) on Form 10-Q for the period ended October 28, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Van Orden certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John Van Orden

John Van Orden

Chief Financial Officer &

Principal Financial Officer

December 6, 2023

EX-99.1

Exhibit 99.1

VILLAGE SUPER MARKET, INC.

REPORTS RESULTS FOR THE FIRST QUARTER ENDED

OCTOBER 28, 2023

Contact:	John Van Orden, CFO
	(973) 467-2200
	villageinvestorrelations@wakefern.com

Springfield, New Jersey – December 5, 2023 – Village Super Market, Inc. (NASDAQ:VLGEA) (the "Company" or "Village") today reported its results of operations for the first quarter ended October 28, 2023.

First Quarter Highlights

•Net income of $11.6 million, an increase of 5% compared to $11.1 million in the first quarter of the prior year

•Sales increased 3.2% and same store sales increased 2.0%

•Same store digital sales increased 13%

First Quarter of Fiscal 2024 Results

Sales were $536.4 million in the 13 weeks ended October 28, 2023 compared to $519.7 million in the 13 weeks ended October 29, 2022. Sales increased due to an increase in same store sales of 2.0% and increased sales due to the remodel and conversion of the Pelham, NY Fairway to the ShopRite banner on August 15, 2022. Same store sales increased due primarily to retail price inflation.New stores, replacement stores and stores with banner changes are included in same store sales in the quarter after the store has been in operation for four full quarters. Store renovations and expansions are included in same store sales immediately.

Gross profit as a percentage of sales decreased to 28.52% in the 13 weeks ended October 28, 2023 compared to 28.73% in the 13 weeks ended October 29, 2022 due primarily to higher promotional spending (.22%), increased warehouse assessment charges from Wakefern (.20%) and an unfavorable change in product mix (.14%) partially offset by increased departmental gross margin percentages (.36%). Department gross margins increased due primarily to improvements in commissary operations.

Operating and administrative expense as a percentage of sales increased to 24.29% in the 13 weeks ended October 28, 2023 compared to 24.16% in the 13 weeks ended October 29, 2022 due primarily to increased facility repair and maintenance costs (.10%), security costs (.07%) and external fees associated with digital sales (.05%) partially offset by lower labor costs and fringe benefits (.10%).

Depreciation and amortization expense in the 13 weeks ended October 28, 2023 was flat compared to the 13 weeks ended October 29, 2022.

Interest expense in the 13 weeks ended October 28, 2023 was flat compared to the 13 weeks ended October 29, 2022.

Interest income increased in the 13 weeks ended October 28, 2023 compared to the 13 weeks ended October 29, 2022 due primarily to higher interest rates and larger amounts invested in variable rate notes receivable from Wakefern and demand deposits at Wakefern.

The effective income tax rate was 31.5% in the 13 weeks ended October 28, 2023 compared to 31.0% in the 13 weeks ended October 29, 2022.

Village Super Market operates a chain of 34 supermarkets in New Jersey, New York, Maryland and Pennsylvania under the ShopRite and Fairway banners and three Gourmet Garage specialty markets in New York City.

Forward Looking Statements

All statements, other than statements of historical fact, included in this Press Release are or may be considered forward-looking statements within the meaning of federal securities law. The Company cautions the reader that there is no assurance that actual results or business conditions will not differ materially from future results, whether expressed, suggested or implied by such forward-looking statements. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. The following are among the principal factors that could cause actual results to differ from the forward-looking statements: general economic conditions; competitive pressures from the Company’s operating environment; the ability of the Company to maintain and improve its sales and margins; the ability to attract and retain qualified associates; the availability of new store locations; the availability of capital; the liquidity of the Company; the success of operating initiatives; consumer spending patterns; the impact of changing energy prices; increased cost of goods sold, including increased costs from the Company’s principal supplier, Wakefern; disruptions or changes in Wakefern's operations; the results of litigation; the results of tax examinations; the results of union contract negotiations;

Exhibit 99.1

competitive store openings and closings; the rate of return on pension assets; and other factors detailed herein and in the Company’s filings with the SEC.

Exhibit 99.1

VILLAGE SUPER MARKET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts) (Unaudited)

	13 Weeks Ended
	October 28, 2023			October 29, 2022
Sales	$	536,354		$	519,689
Cost of sales	383,406			370,404
Gross profit	152,948			149,285
Operating and administrative expense	130,292			125,562
Depreciation and amortization	8,506			8,547
Operating income	14,150			15,176
Interest expense	(1,064)			(1,087)
Interest income	3,825			1,968
Income before income taxes	16,911			16,057
Income taxes	5,326			4,976
Net income	$	11,585		$	11,081
Net income per share:
Class A common stock:
Basic	$	0.87		$	0.85
Diluted	$	0.78		$	0.76
Class B common stock:
Basic	$	0.56		$	0.55
Diluted	$	0.56		$	0.55
Gross profit as a % of sales	28.52		%	28.73		%
Operating and administrative expense as a % of sales	24.29		%	24.16		%

.

XML

COVER PAGE - shares	3 Months Ended
	Oct. 28, 2023	Dec. 05, 2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 28, 2023
Document Transition Report	false
Entity File Number	0-2633
Entity Registrant Name	VILLAGE SUPER MARKET, INC.
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-1576170
Entity Address, Address Line One	733 Mountain Avenue
Entity Address, City or Town	Springfield
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07081
City Area Code	973
Local Phone Number	467-2200
Title of 12(b) Security	Class A common stock, no par value
Trading Symbol	VLGEA
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000103595
Current Fiscal Year End Date	--07-27
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Class A
Entity Common Stock, Shares Outstanding		10,603,764
Common Class B
Entity Common Stock, Shares Outstanding		4,203,748

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 28, 2023	Jul. 29, 2023
Current assets
Cash and cash equivalents	$ 134,773	$ 140,910
Merchandise inventories	47,492	44,515
Patronage dividend receivable	17,315	12,466
Other current assets	17,683	17,313
Total current assets	249,474	246,687
Property, equipment and fixtures, net	281,611	277,310
Operating lease assets	268,790	274,100
Investment in Wakefern	33,145	33,107
Investments in Real Estate Partnerships	14,968	13,155
Goodwill	24,190	24,190
Other assets	40,408	36,431
Total assets	976,723	967,706
Current liabilities
Operating lease obligations	20,937	20,389
Finance lease obligations	686	667
Current portion of debt	9,370	9,370
Accounts payable and accrued expenses	34,960	31,441
Accrued wages and benefits	28,433	29,853
Income taxes payable	6,881	9,483
Total current liabilities	183,199	178,973
Long-term debt
Operating lease obligations	262,220	266,683
Finance lease obligations	20,390	20,623
Notes payable to Wakefern	1,566	1,686
Long-term debt	70,039	72,426
Total long-term debt	354,215	361,418
Pension liabilities	5,005	4,893
Other liabilities	15,059	12,256
Commitments and Contingencies
Shareholders' equity
Preferred stock, no par value: Authorized 10,000 shares, none issued	0	0
Retained earnings	351,732	343,497
Accumulated other comprehensive income	8,836	8,134
Total shareholders’ equity	419,245	410,166
Total liabilities and shareholders’ equity	976,723	967,706
Related Party
Current assets
Notes receivable from Wakefern	32,211	31,483
Notes receivable from Wakefern	64,137	62,726
Current liabilities
Notes payable to Wakefern	754	737
Accounts payable to Wakefern	81,178	77,033
Common Class A
Shareholders' equity
Common Stock	77,103	76,179
Less treasury stock, Class A, at cost: 944 shares at October 28, 2023 and 912 shares at July 29, 2023	(19,109)	(18,327)
Common Class B
Shareholders' equity
Common Stock	$ 683	$ 683

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Oct. 28, 2023	Jul. 29, 2023
Preferred stock shares authorized (in shares)	10,000,000	10,000,000
Preferred stock shares issued (in shares)	0	0
Common Class A
Common stock shares authorized (in shares)	20,000,000	20,000,000
Common stock shares issued (in shares)	11,568,000	11,563,000
Treasury shares (in shares)	944,000	912,000
Common Class B
Common stock shares authorized (in shares)	20,000,000	20,000,000
Common stock shares issued (in shares)	4,204,000	4,204,000
Common stock shares outstanding (in shares)	4,204,000	4,204,000

XML

CONSOLIDATED STATMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
Sales	$ 536,354	$ 519,689
Cost of sales	383,406	370,404
Gross profit	152,948	149,285
Operating and administrative expense	130,292	125,562
Depreciation and amortization	8,506	8,547
Operating income	14,150	15,176
Interest expense	(1,064)	(1,087)
Interest income	3,825	1,968
Income before income taxes	16,911	16,057
Income taxes	5,326	4,976
Net income	$ 11,585	$ 11,081
Common Class A
Net income per share:
Basic (in dollars per share)	$ 0.87	$ 0.85
Diluted (in dollars per share)	0.78	0.76
Common Class B
Net income per share:
Basic (in dollars per share)	0.56	0.55
Diluted (in dollars per share)	$ 0.56	$ 0.55

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		3 Months Ended
		Oct. 28, 2023	Oct. 29, 2022
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income		$ 11,585	$ 11,081
Other comprehensive income:
Unrealized gains on interest rate swaps, net of tax	[1]	777	2,765
Amortization of pension actuarial loss, net of tax	[2]	(75)	(96)
Comprehensive income		$ 12,287	$ 13,750

[1] Amount is net of tax of $357 and $1,242 for the 13 weeks ended October 28, 2023 and October 29, 2022, respectively.

[2] Amounts are net of tax of $34 and $43 for the 13 weeks ended October 28, 2023 and October 29, 2022, respectively. All amounts are reclassified from accumulated other comprehensive income to operating and administrative expense.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Tax expense (benefit) on unrealized losses on interest rate swaps	$ 357	$ 1,242
Tax of amortization of pension actuarial loss	$ 34	$ (43)

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock Common Class A	Common Stock Common Class B	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock, Common
Balance (in shares) at Jul. 30, 2022		10,971	4,294			752
Balance at Jul. 30, 2022	$ 372,109	$ 72,891	$ 697	$ 306,974	$ 6,135	$ (14,588)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,081			11,081
Other comprehensive income, net of tax	2,669				2,669
Dividends	(3,252)			(3,252)	0
Restricted shares forfeited (in shares)		0
Share-based compensation expense	608	$ 608
Balance (in shares) at Oct. 29, 2022		10,971	4,294			752
Balance at Oct. 29, 2022	383,215	$ 73,499	$ 697	314,803	8,804	$ (14,588)
Balance (in shares) at Jul. 29, 2023		11,563	4,204			912
Balance at Jul. 29, 2023	410,166	$ 76,179	$ 683	343,497	8,134	$ (18,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11,585			11,585
Other comprehensive income, net of tax	702				702
Dividends	(3,350)			(3,350)
Restricted shares forfeited	(28)	$ (28)
Treasury stock purchases (in shares)						32
Treasury stock purchases	(782)					$ (782)
Restricted shares forfeited (in shares)		(9)
Share-based compensation expense (in shares)		14
Share-based compensation expense	952	$ 952
Balance (in shares) at Oct. 28, 2023		11,568	4,204			944
Balance at Oct. 28, 2023	$ 419,245	$ 77,103	$ 683	$ 351,732	$ 8,836	$ (19,109)

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
Statement of Stockholders' Equity [Abstract]
Tax expense (benefit) associated with other comprehensive loss and income	$ 323	$ 1,199

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 11,585	$ 11,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	8,967	8,950
Non-cash share-based compensation	924	608
Deferred taxes	(207)	103
Provision to value inventories at LIFO	466	538
Gain on sale of property, equipment and fixtures	(39)	(17)
Changes in assets and liabilities:
Merchandise inventories	(3,443)	(4,893)
Patronage dividend receivable	(4,849)	(4,745)
Accounts payable to Wakefern	4,216	3,760
Accounts payable and accrued expenses	3,954	3,389
Accrued wages and benefits	(1,420)	(697)
Income taxes receivable / payable	(2,602)	4,492
Other assets and liabilities	827	(550)
Net cash provided by operating activities	18,379	22,019
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(13,773)	(9,813)
Proceeds from the sale of assets	39	17
Investment in notes receivable from Wakefern	(2,139)	(59,767)
Maturity of notes receivable from Wakefern	0	28,850
Investment in real estate partnership	(1,813)	(1,276)
Net cash used in investing activities	(17,686)	(41,989)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	0	10,000
Principal payments of long-term debt	(2,698)	(2,352)
Debt issuance costs	0	(11)
Dividends	(3,350)	(3,252)
Treasury stock purchases	(782)	0
Net cash (used in) provided by financing activities	(6,830)	4,385
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(6,137)	(15,585)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	140,910	134,832
CASH AND CASH EQUIVALENTS, END OF PERIOD	134,773	119,247
SUPPLEMENTAL DISCLOSURES OF CASH  PAYMENTS MADE FOR:
Interest	1,064	1,087
Income taxes	8,135	380
NONCASH SUPPLEMENTAL DISCLOSURES:
Investment in Wakefern and increase in notes payable to Wakefern	38	0
Capital expenditures included in accounts payable and accrued expenses	5,086	5,427
Lease obligations obtained in exchange for right-of-use assets	$ 908	$ 0

XML

BASIS OF PRESENTATION and ACCOUNTING POLICIES

3 Months Ended

Oct. 28, 2023

Accounting Policies [Abstract]

BASIS OF PRESENTATION and ACCOUNTING POLICIES

BASIS OF PRESENTATION and ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal and recurring accruals) necessary to present fairly the consolidated financial position as of October 28, 2023 and the consolidated statements of operations, comprehensive income and cash flows for the 13 weeks ended October 28, 2023 and October 29, 2022 of Village Super Market, Inc. (“Village” or the “Company”).

The significant accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements in the July 29, 2023 Village Super Market, Inc. Annual Report on Form 10-K, which should be read in conjunction with these financial statements.  The results of operations for the period ended October 28, 2023 are not necessarily indicative of the results to be expected for the full year.

Disaggregated Revenues

The following table presents the Company's sales by product categories during each of the periods indicated:

	13 Weeks Ended
	October 28, 2023				October 29, 2022
	Amount		%		Amount		%
Center Store (1)	$	320,924	59.8	%	$	311,824	60.0	%
Fresh (2)	193,520		36.1		189,008		36.4
Pharmacy	20,211		3.8		17,169		3.3
Other (3)	1,699		0.3		1,688		0.3
Total Sales	$	536,354	100.0	%	$	519,689	100.0	%

(1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor.

(2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral.

(3) Consists primarily of sales related to other income streams, including service fees related to digital sales, gift card and lottery commissions and wholesale sales.

XML

MERCHANDISE INVENTORIES

3 Months Ended

Oct. 28, 2023

Inventory Disclosure [Abstract]

MERCHANDISE INVENTORIES

MERCHANDISE INVENTORIES

    At October 28, 2023 and July 29, 2023, approximately 63% and 64%, respectively, of merchandise inventories are valued by the LIFO method while the balance is valued by FIFO.  If the FIFO method had been used for the entire inventory, inventories would have been $21,704 and $21,238 higher than reported at October 28, 2023 and July 29, 2023, respectively.

XML

NET INCOME PER SHARE

3 Months Ended

Oct. 28, 2023

Earnings Per Share [Abstract]

NET INCOME PER SHARE

NET INCOME PER SHARE

    The Company has two classes of common stock. Class A common stock is entitled to cash dividends as declared 54% greater than those paid on Class B common stock. Shares of Class B common stock are convertible on a share-for-share basis for Class A common stock at any time.

    The Company utilizes the two-class method of computing and presenting net income per share. The two-class method is an earnings allocation formula that calculates basic and diluted net income per share for each class of common stock separately based on dividends declared and participation rights in undistributed earnings. Under the two-class method, Class A common stock is assumed to receive a 54% greater participation in undistributed earnings than Class B common stock, in accordance with the classes' respective dividend rights. Unvested share-based payment awards that contain nonforfeitable rights to dividends are treated as participating securities and therefore included in computing net income per share using the two-class method.

    Diluted net income per share for Class A common stock is calculated utilizing the if-converted method, which assumes the conversion of all shares of Class B common stock to Class A common stock on a share-for-share basis, as this method is more dilutive than the two-class method. Diluted net income per share for Class B common stock does not assume conversion of Class B common stock to shares of Class A common stock.

The table below reconciles Net income to Net income available to Class A and Class B shareholders:

	13 Weeks Ended
	October 28, 2023		October 29, 2022
Net income	$	11,585	$	11,081
Distributed and allocated undistributed Net income to unvested restricted shareholders	440		304
Net income available to Class A and Class B shareholders	$	11,145	$	10,777

    The tables below reconcile the numerators and denominators of basic and diluted Net income per share for all periods presented.

	13 Weeks Ended
	October 28, 2023
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,782	$	2,363
Conversion of Class B to Class A shares	2,363		—
Net income allocated, diluted	$	11,145	$	2,363
Denominator:
Weighted average shares outstanding, basic	10,146		4,204
Conversion of Class B to Class A shares	4,204		—
Weighted average shares outstanding, diluted	14,350		4,204
	13 Weeks Ended
	October 29, 2022
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,402	$	2,376
Conversion of Class B to Class A shares	2,376		—
Net income allocated, diluted	$	10,778	$	2,376
Denominator:
Weighted average shares outstanding, basic	9,863		4,294
Conversion of Class B to Class A shares	4,294		—
Weighted average shares outstanding, diluted	14,157		4,294

    Outstanding stock options to purchase Class A shares of 86 and 93 were excluded from the calculation of diluted net income per share at October 28, 2023 and October 29, 2022, respectively, as a result of their anti-dilutive effect. In addition, 507 and 363 non-vested restricted Class A shares, which are considered participating securities, and their allocated net income were excluded from the diluted net income per share calculation at October 28, 2023 and October 29, 2022, respectively, due to their anti-dilutive effect.

XML

RELATED PARTY INFORMATION

3 Months Ended

Oct. 28, 2023

Related Party Transactions [Abstract]

RELATED PARTY INFORMATION

RELATED PARTY INFORMATION

    A description of the Company’s transactions with Wakefern, its principal supplier, and with other related parties is included in the Company’s Annual Report on Form 10-K for the year ended July 29, 2023.  

    On August 15, 2022, notes receivable due from Wakefern of $28,850 that earned interest at the prime rate plus 1.25% matured. The Company invested all of the proceeds received in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on August 15, 2027. On September 28, 2022, the Company invested an additional $30,000 in variable rate notes receivable from Wakefern that earn interest at the prime rate plus .50% and mature on September 28, 2027. At October 28, 2023, the Company held variable rate notes receivable due from Wakefern of $32,211 that earn interest at the prime rate plus .75% and mature on February 15, 2024, $31,559 that earn interest at the prime rate plus .50% and mature on August 15, 2027 and $32,578 that earn interest at the prime rate plus .50% and mature on September 28, 2027. Wakefern has the right to prepay these notes at any time. Under certain conditions, the Company can require Wakefern to prepay the notes, although interest earned since inception would be reduced as if it was earned based on overnight money market rates as paid by Wakefern on demand deposits.

    Included in cash and cash equivalents at October 28, 2023 and July 29, 2023 are $116,520 and $122,028, respectively, of demand deposits invested at Wakefern at overnight money market rates.

On April 28, 2022, the Company entered into a partnership agreement for 30% interest in the development of a retail center in Old Bridge, New Jersey, which includes a Village replacement store with an operating lease obligation of $4,304 as of October 28, 2023.Village will fund its share of project costs estimated to be $15,000 to $20,000 over the two to three year life of the project. As of October 28, 2023, Village has invested $12,688 into the real estate partnership, which is accounted for as an equity method investment included in Investments in Real Estate Partnerships on the Consolidated Balance Sheet.

    There have been no other significant changes in the Company’s relationships or nature of transactions with related parties during the 13 weeks ended October 28, 2023.

XML

COMMITMENTS and CONTINGENCIES

3 Months Ended

Oct. 28, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS and CONTINGENCIES

COMMITMENTS and CONTINGENCIES

    The Company is involved in litigation incidental to the normal course of business. Company management is of the opinion that the ultimate resolution of these legal proceedings should not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company.

XML

DEBT

3 Months Ended

Oct. 28, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

Long-term debt consists of:

	October 28, 2023		July 29, 2023
Secured term loans	$	52,846	$	53,912
Unsecured term loan	21,443		22,702
New Market Tax Credit Financing	5,120		5,182
Total debt, excluding obligations under leases	79,409		81,796
Less current portion	9,370		9,370
Total long-term debt, excluding obligations under leases	$	70,039	$	72,426

Credit Facility

The Company has a credit facility (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”). The principal purpose of the Credit Facility is to finance general corporate and working capital requirements, Village’s fiscal 2020 acquisition of certain Fairway assets and certain capital expenditures. Among other things, the Credit Facility provides for:

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $75,000. Indebtedness under this agreement bears interest at the applicable Secured Overnight Financing Rate ("SOFR") plus 1.10% and expires on May 6, 2025.

•An unsecured $25,500 term loan issued on May 12, 2020, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable SOFR plus 1.46%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .26% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.72% on the term loan.

•A secured $50,000 term loan issued on September 1, 2020 repayable in equal monthly installments based on a fifteen-year amortization schedule through September 1, 2035 and bearing interest at the applicable SOFR plus 1.61%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at .57% per annum through September 1, 2035, resulting in a fixed effective interest rate of 2.18% on the term loan. The term loan is secured by real properties of Village Super Market, Inc. and its subsidiaries, including the sites of three Village stores.

•A secured $7,350 term loan issued on January 28, 2022 repayable in equal monthly installments based on a fifteen-year amortization schedule through January 28, 2037 and bearing interest at the applicable SOFR plus 1.50%. An interest rate swap with notional amounts equal to the term loan fixes the base SOFR at 1.41% per annum through January 28, 2037, resulting in a fixed effective interest rate of 2.91% on the term loan. The term loan is secured by the Galloway store shopping center acquired in the first quarter of fiscal 2022.

On September 1, 2022, the Company amended the Credit Facility due to the execution of a seven year $10,000 unsecured term loan. The unsecured term loan is repayable in equal monthly installments based on a seven year amortization schedule through September 4, 2029 and bears interest at the applicable SOFR plus 1.35%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 2.95%, resulting in a fixed effective rate of 4.30%. This loan qualified for an interest rate subsidy program with Wakefern on financing related to certain capital expenditure projects. Net of the subsidy, the Company will pay interest at a fixed effective rate of 2.30%.

On January 27, 2023, the Company purchased the Vineland store shopping center for $9,500. As part of the purchase, the Company amended the Credit Facility due to the execution of a fifteen year $7,125 term loan secured by the Vineland store shopping center. The secured term loan is repayable in equal monthly installments based on a fifteen year amortization schedule through January 27, 2038 and bears interest at the applicable SOFR plus 1.75%. Village also executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base SOFR at 3.59%, resulting in a fixed effective rate of 5.34%.

The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at October 28, 2023), which secure obligations for store leases and construction performance guarantees to municipalities. The Credit Facility contains covenants that, among other conditions, require a minimum tangible net worth, a minimum fixed charge coverage ratio and a maximum adjusted debt to EBITDAR ratio. The Company was in compliance with all covenants of the credit agreement at October 28, 2023. As of October 28, 2023, $67,664 remained available under the unsecured revolving line of credit.

New Markets Tax Credit Financing

On December 29, 2017, the Company entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (“Wells Fargo”) under a qualified New Markets Tax Credit (“NMTC”) program related to the construction of a new store in the Bronx, New York. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their Federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments.

In connection with the financing, the Company loaned $4,835 to VSM Investment Fund, LLC (the "Investment Fund") at an interest rate of  1.403% per year and with a maturity date of December 31, 2044.  Repayments on the loan commence in March 2025. Wells Fargo contributed $2,375 to the Investment Fund and, by virtue of such contribution, is entitled to substantially all of the tax benefits derived from the NMTC. The Investment Fund is a wholly owned subsidiary of Wells Fargo.  The loan to the Investment Fund is recorded in Other assets in the consolidated balance sheets.

The Investment Fund then contributed the proceeds to a CDE, which, in turn, loaned combined funds of $6,563, net of debt issuance costs, to Village Super Market of NY, LLC, a wholly-owned subsidiary of the Company, at an interest rate

of 1.000% per year with a maturity date of December 31, 2051. These loans are secured by the leasehold improvements and equipment related to the construction of the Bronx store. Repayment of the loans commences in March 2025. The proceeds of the loans from the CDE were used to partially fund the construction of the Bronx store. The Notes payable related to New Markets Tax Credit, net of debt issuance costs, are recorded in long-term debt in the consolidated balance sheets.

The NMTC is subject to 100% recapture for a period of seven years. The Company is required to be in compliance with various regulations and contractual provisions that apply to the New Markets Tax Credit arrangement. Noncompliance could result in Wells Fargo's projected tax benefits not being realized and, therefore, require the Company to indemnify Wells Fargo for any loss or recapture of NMTCs. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase Wells Fargo's interest in the Investment Fund. The value attributed to the put/call is de minimis. We believe that Wells Fargo will exercise the put option in December 2024, at the end of the recapture period, that will result in a net benefit to the Company of $1,728. The Company is recognizing the net benefit over the seven-year compliance period in operating and administrative expense.

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DERIVATIVES AND HEDGING ACTIVITIES

3 Months Ended

Oct. 28, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

DERIVATIVES AND HEDGING ACTIVITIES

The Company is exposed to interest rate risk arising from fluctuations in SOFR related to the Company’s Credit Facility. The Company manages exposure to this risk and the variability of related cash flows primarily by the use of derivative financial instruments, specifically, interest rate swaps.

The Company’s objectives in using interest rate swaps are to add stability to interest expense and to manage its exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

As of October 28, 2023, the Company had five interest rate swaps with an aggregate initial notional value of $99,975 to hedge the variable cash flows associated with variable-rate loans under the Company's Credit Facility. The interest rate swaps were executed for risk management and are not held for trading purposes. The objective of the interest rate swaps is to hedge the variability of cash flows resulting from fluctuations in the reference rate. The swaps replaced the applicable reference rate with fixed interest rates and payments are settled monthly when payments are made on the variable-rate loans. The Company's derivatives qualify and have been designated as cash flow hedges of interest rate risk. The gain or loss on the derivative is recorded in Accumulated other comprehensive income and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $781 and $243 during the 13 weeks ended October 28, 2023 and October 29, 2022, respectively, from Accumulated other comprehensive income to Interest expense.

The notional value of the interest rate swaps were $74,570 as of October 28, 2023. The fair value of interest rate swaps recorded in Other assets in the consolidated balance sheets is $10,269 as of October 28, 2023.

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BASIS OF PRESENTATION and ACCOUNTING POLICIES (Tables)

3 Months Ended

Oct. 28, 2023

Accounting Policies [Abstract]

Disaggregation of Revenue

The following table presents the Company's sales by product categories during each of the periods indicated:

	13 Weeks Ended
	October 28, 2023				October 29, 2022
	Amount		%		Amount		%
Center Store (1)	$	320,924	59.8	%	$	311,824	60.0	%
Fresh (2)	193,520		36.1		189,008		36.4
Pharmacy	20,211		3.8		17,169		3.3
Other (3)	1,699		0.3		1,688		0.3
Total Sales	$	536,354	100.0	%	$	519,689	100.0	%

(1) Consists primarily of grocery, dairy, frozen, health and beauty care, general merchandise and liquor.

(2) Consists primarily of produce, meat, deli, seafood, bakery, prepared foods and floral.

(3) Consists primarily of sales related to other income streams, including service fees related to digital sales, gift card and lottery commissions and wholesale sales.

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NET INCOME PER SHARE (Tables)

3 Months Ended

Oct. 28, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The table below reconciles Net income to Net income available to Class A and Class B shareholders:

	13 Weeks Ended
	October 28, 2023		October 29, 2022
Net income	$	11,585	$	11,081
Distributed and allocated undistributed Net income to unvested restricted shareholders	440		304
Net income available to Class A and Class B shareholders	$	11,145	$	10,777

    The tables below reconcile the numerators and denominators of basic and diluted Net income per share for all periods presented.

	13 Weeks Ended
	October 28, 2023
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,782	$	2,363
Conversion of Class B to Class A shares	2,363		—
Net income allocated, diluted	$	11,145	$	2,363
Denominator:
Weighted average shares outstanding, basic	10,146		4,204
Conversion of Class B to Class A shares	4,204		—
Weighted average shares outstanding, diluted	14,350		4,204
	13 Weeks Ended
	October 29, 2022
	Class A		Class B
Numerator:
Net income allocated, basic	$	8,402	$	2,376
Conversion of Class B to Class A shares	2,376		—
Net income allocated, diluted	$	10,778	$	2,376
Denominator:
Weighted average shares outstanding, basic	9,863		4,294
Conversion of Class B to Class A shares	4,294		—
Weighted average shares outstanding, diluted	14,157		4,294

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Debt (Tables)

3 Months Ended

Oct. 28, 2023

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of:

	October 28, 2023		July 29, 2023
Secured term loans	$	52,846	$	53,912
Unsecured term loan	21,443		22,702
New Market Tax Credit Financing	5,120		5,182
Total debt, excluding obligations under leases	79,409		81,796
Less current portion	9,370		9,370
Total long-term debt, excluding obligations under leases	$	70,039	$	72,426

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BASIS OF PRESENTATION and ACCOUNTING POLICIES - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
Revenue from External Customer [Line Items]
Sales	$ 536,354	$ 519,689
Percentage of total sales	100.00%	100.00%
Center Store
Revenue from External Customer [Line Items]
Sales	$ 320,924	$ 311,824
Percentage of total sales	59.80%	60.00%
Fresh
Revenue from External Customer [Line Items]
Sales	$ 193,520	$ 189,008
Percentage of total sales	36.10%	36.40%
Pharmacy
Revenue from External Customer [Line Items]
Sales	$ 20,211	$ 17,169
Percentage of total sales	3.80%	3.30%
Other
Revenue from External Customer [Line Items]
Sales	$ 1,699	$ 1,688
Percentage of total sales	0.30%	0.30%

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MERCHANDISE INVENTORIES (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Jul. 29, 2023
Inventory Disclosure [Abstract]
Percentage of LIFO inventory	63.00%	64.00%
Inventory, LIFO reserve	$ 21,704	$ 21,238

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NET INCOME PER SHARE - Additional Information (Details) shares in Thousands	3 Months Ended
	Oct. 28, 2023 class shares	Oct. 29, 2022 shares
Earnings Per Share [Abstract]
Number of common stock classes | class	2
Common stock cash dividends, percent Class A is entitled greater than Class B	54.00%
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class A shares excluded from computation of earnings per share (shares)	507	363
Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class A shares excluded from computation of earnings per share (shares)	86	93

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NET INCOME PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Oct. 28, 2023	Oct. 29, 2022
Class of Stock [Line Items]
Net income	$ 11,585	$ 11,081
Distributed and allocated undistributed Net income to unvested restricted shareholders	440	304
Net income available to Class A and Class B shareholders	11,145	10,777
Numerator:
Net income allocated, basic	11,145	10,777
Common Class A
Class of Stock [Line Items]
Net income available to Class A and Class B shareholders	8,782	8,402
Numerator:
Net income allocated, basic	8,782	8,402
Conversion of Class B to Class A shares	2,363	2,376
Net income allocated, diluted	$ 11,145	$ 10,778
Denominator:
Weighted average shares outstanding, basic (in shares)	10,146	9,863
Conversion of Class B to Class A shares (in shares)	4,204	4,294
Weighted average shares outstanding, diluted (in shares)	14,350	14,157
Common Class B
Class of Stock [Line Items]
Net income available to Class A and Class B shareholders	$ 2,363	$ 2,376
Numerator:
Net income allocated, basic	2,363	2,376
Conversion of Class B to Class A shares	0	0
Net income allocated, diluted	$ 2,363	$ 2,376
Denominator:
Weighted average shares outstanding, basic (in shares)	4,204	4,294
Conversion of Class B to Class A shares (in shares)	0	0
Weighted average shares outstanding, diluted (in shares)	4,204	4,294

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RELATED PARTY INFORMATION (Details) $ in Thousands				3 Months Ended
	Sep. 28, 2022 USD ($)	Aug. 15, 2022 USD ($)	Apr. 28, 2022 USD ($)	Oct. 28, 2023 USD ($)	Oct. 29, 2022 USD ($)	Jul. 29, 2023 USD ($)
Related Party Transaction [Line Items]
Maturity of notes receivable from Wakefern				$ 0	$ 28,850
Wakefern
Related Party Transaction [Line Items]
Demand deposits at Wakefern				116,520		$ 122,028
Wakefern | Related Party Note Receivable Maturing September 2027
Related Party Transaction [Line Items]
Notes receivable maturity		$ 28,850
Investment in notes receivable related to New Markets Tax Credit financing	$ 30,000
Wakefern | Related Party Note Receivable Maturing August 2027
Related Party Transaction [Line Items]
Related party basis spread	0.50%
Due to related parties				$ 32,578
Wakefern | Related Party Note Receivable Maturing February 2024
Related Party Transaction [Line Items]
Related party basis spread				0.75%
Due to related parties	$ 32,211
Wakefern | Related Party Note Receivable Maturing August 2022
Related Party Transaction [Line Items]
Related party basis spread		1.25%		0.50%
Due to related parties				$ 31,559
Partnership Agreement
Related Party Transaction [Line Items]
Percent interest within party agreement			0.30
Amount invested in partnership				12,688
Operating lease obligation				$ 4,304
Partnership Agreement | Minimum [Member]
Related Party Transaction [Line Items]
Estimated project costs			$ 15,000
Partnership Agreement | Maximum [Member]
Related Party Transaction [Line Items]
Estimated project costs			$ 20,000

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DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Oct. 28, 2023	Jul. 29, 2023
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	$ 79,409	$ 81,796
Less current portion	9,370	9,370
Total long-term debt, excluding obligations under leases	70,039	72,426
Line of Credit | Secured Debt
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	52,846	53,912
Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	21,443	22,702
Notes Payable to Banks
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	$ 5,120	$ 5,182

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DEBT - Additional Information (Details)							63 Months Ended	84 Months Ended	163 Months Ended	180 Months Ended
	Jan. 27, 2023 USD ($)	Sep. 01, 2022 USD ($)	Jan. 28, 2022 USD ($)	Sep. 01, 2020 USD ($) store	May 12, 2020 USD ($)	Dec. 29, 2017 USD ($)	May 04, 2027	Dec. 29, 2024 USD ($)	Sep. 01, 2035	Jan. 28, 2037	Oct. 28, 2023 USD ($)	Jul. 29, 2023 USD ($)	Feb. 28, 2022	May 06, 2020 USD ($)
Debt Instrument [Line Items]
Loans receivable						$ 4,835,000
Interest on unrelated party note receivable percentage						1.403%
Third party contribution to investment fund						$ 2,375,000
Notes payable related to New Markets Tax Credit						$ 6,563,000					$ 70,039,000	$ 72,426,000
Interest rate, stated percentage						1.00%
Total debt, excluding obligations under leases											79,409,000	81,796,000
Debt Instrument, Collateral, Number of Stores | store				3
Scenario, Forecast
Debt Instrument [Line Items]
Benefit over recapture period								$ 1,728,000
Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Total debt, excluding obligations under leases											21,443,000	$ 22,702,000
Secured Debt
Debt Instrument [Line Items]
Debt term	15 years
Payments to acquire shopping center	$ 9,500,000
Effective interest rate	0.0534%
Total debt, excluding obligations under leases	$ 7,125,000
Unsecured Debt
Debt Instrument [Line Items]
Derivative, fixed rate		0.043%
Long-term Debt, Term		7 years
Total debt, excluding obligations under leases		$ 10,000,000
Interest rate after subsidy program		2.30%
Amended and Restated Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 75,000,000
Term loan				$ 50,000,000
Amended and Restated Credit Agreement | Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Debt term					7 years
Term loan					$ 25,500,000
Effective interest rate													1.72%
Amended and Restated Credit Agreement | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity														$ 25,000,000
Debt outstanding											7,336,000
Remaining borrowing capacity											$ 67,664,000
Amended and Restated Credit Agreement | Secured Debt
Debt Instrument [Line Items]
Debt term			15 years	15 years
Term loan			$ 7,350,000
Effective interest rate			2.91%										2.18%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt
Debt Instrument [Line Items]
Debt, basis spread on variable rate	1.75%
Derivative, fixed rate	0.0359%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Unsecured Debt
Debt Instrument [Line Items]
Debt, basis spread on variable rate		1.35%
Derivative Instrument, Fixed Base Rate		0.0295%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Amended and Restated Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Debt, basis spread on variable rate			1.10%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Amended and Restated Credit Agreement | Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Derivative, fixed rate													0.26%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Amended and Restated Credit Agreement | Line of Credit | Medium-term Notes | Scenario, Forecast
Debt Instrument [Line Items]
Debt, basis spread on variable rate							1.46%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Amended and Restated Credit Agreement | Secured Debt | Scenario, Forecast
Debt Instrument [Line Items]
Debt, basis spread on variable rate									1.61%	1.50%
Interest Rate Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Amended and Restated Credit Agreement | Secured Debt
Debt Instrument [Line Items]
Derivative, fixed rate			0.0141%										0.57%

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DERIVATIVES AND HEDGING ACTIVITIES - Additional Information (Details) $ in Thousands	3 Months Ended
	Oct. 28, 2023 USD ($) swap	Oct. 29, 2022 USD ($)	Jul. 30, 2022 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of derivative instruments held | swap	5
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative notional amount	$ 74,570		$ 99,975
Fair of interest rate swaps recorded in other assets	10,269
Interest Rate Swap | Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification of accumulated other comprehensive loss to interest expense	$ 781	$ 243