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 April 27, 2019 and the consolidated statements of operations, comprehensive income and cash flows for the 13 and 39 weeks ended April 27, 2019 and April 28, 2018 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 28, 2018 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 periods ended April 27, 2019 are not necessarily indicative of the results to be expected for the full year.

Revenue recognition

Revenue is recognized at the point of sale to the customer, including Pharmacy sales. ShopRite From Home sales are recognized either upon pickup in-store or upon delivery to the customer, including any related service fees. Sales tax is excluded from revenue.

Discounts provided to customers through ShopRite coupons and loyalty programs are recognized as a reduction of sales as products are sold. Discounts provided by vendors are not recognized as a reduction in sales. Rather, the Company records a receivable from the vendor for the difference in sales price and payment received from the customer.

The Company does not recognize revenue when it sells ShopRite gift cards. Payment collected from customers for gift card sales is passed on to Wakefern as they can be redeemed at any ShopRite location, including those operated by Wakefern or other Wakefern members. Revenue is recognized and a receivable from Wakefern is recorded when a customer redeems a ShopRite gift card to purchase products or services.

The Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” using the full retrospective approach in fiscal 2019. As a result of the adoption of the standard, $952 and $3,044 of certain other income streams, including commissions for gift card and lottery sales and service fees for ShopRite From Home, that were previously presented as a reduction in Operating expenses were reclassified to sales for the 13 and 39 weeks ended April 28, 2018, respectively. Additionally, $123 and $463 of pharmacy fees previously recorded as Cost of sales were reclassified as a reduction of sales for the 13 and 39 weeks ended April 28, 2018, respectively.

Disaggregated Revenues

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



	13 Weeks Ended								39 Weeks Ended
	April 27, 2019				April 28, 2018				April 27, 2019				April 28, 2018
	Amount		%		Amount		%		Amount		%		Amount		%
Center Store (1)	$	242,958	61.4	%	$	245,576	62.1	%	$	760,080	62.1	%	$	749,546	62.4	%
Fresh (2)	134,005		33.9		131,587		33.3		409,685		33.4	%	395,794		33.0	%
Pharmacy	17,287		4.4		17,398		4.4		51,983		4.2	%	52,859		4.4	%
Other (3)	1,208		0.3		876		0.2		3,389		0.3	%	2,846		0.2	%

Total Sales	$	395,458	100.0	%	$	395,437	100.0	%	$	1,225,137	100.0	%	$	1,201,045	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 ShopRite from Home service fees and gift card and lottery commissions.