10-Q

UNITED 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 April 24, 2021
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:
		June 3, 2021
	Class A Common Stock, No Par Value	10,259,088 Shares
	Class B Common Stock, No Par Value	4,293,748 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	14
Item 3.  Quantitative & Qualitative Disclosures about Market Risk	23
Item 4.  Controls and Procedures	23
PART II
OTHER INFORMATION
Item 6.  Exhibits	24
Signatures	25

2

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	April 24, 2021		July 25, 2020
ASSETS
Current assets
Cash and cash equivalents	$	112,677	$	111,681
Merchandise inventories	44,972		42,135
Patronage dividend receivable	7,740		11,204
Income taxes receivable	8,190		12,801
Other current assets	19,803		19,499
Total current assets	193,382		197,320
Property, equipment and fixtures, net	255,648		269,741
Operating lease assets	297,256		309,756
Notes receivable from Wakefern	54,716		53,008
Investment in Wakefern	30,483		29,462
Goodwill	24,190		24,190
Other assets	34,403		32,069
Total assets	$	890,078	$	915,546
LIABILITIES and SHAREHOLDERS' EQUITY
Current liabilities
Operating lease obligations	$	21,199	$	19,121
Finance lease obligations	515		466
Notes payable to Wakefern	521		303
Current portion of debt	6,976		6,421
Accounts payable to Wakefern	75,626		83,045
Accounts payable and accrued expenses	24,705		29,793
Accrued wages and benefits	23,147		23,649
Total current liabilities	152,689		162,798
Long-term debt
Operating lease obligations	285,883		298,027
Finance lease obligations	22,518		23,078
Notes payable to Wakefern	413		882
Long-term debt	68,614		74,194
Total long-term debt	377,428		396,181
Pension liabilities	6,146		6,166
Other liabilities	16,547		18,081
Commitments and contingencies
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 10,985 shares at April 24, 2021 and July 25, 2020	69,964		68,072
Class B common stock, no par value: Authorized 20,000 shares; issued and outstanding 4,294 shares at April 24, 2021 and July 25, 2020	697		697
Retained earnings	286,946		286,241
Accumulated other comprehensive loss	(6,400)		(8,751)
Less treasury stock, Class A, at cost: 726 shares at April 24, 2021 and July 25, 2020	(13,939)		(13,939)
Total shareholders’ equity	337,268		332,320
Total liabilities and shareholders’ equity	$	890,078	$	915,546

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				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Sales	$	481,093	$	458,292	$	1,494,047	$	1,303,116
Cost of sales	347,671		328,391		1,080,817		941,722
Gross profit	133,422		129,901		413,230		361,394
Operating and administrative expense	121,156		106,987		371,968		317,861
Depreciation and amortization	8,418		7,678		25,925		22,914
Operating income	3,848		15,236		15,337		20,619
Interest expense	(994)		(563)		(2,963)		(1,698)
Interest income	904		910		2,670		3,199
Income before income taxes	3,758		15,583		15,044		22,120
Income taxes	1,184		4,431		4,554		6,396
Net income	$	2,574	$	11,152	$	10,490	$	15,724
Net income per share:
Class A common stock:
Basic	$	0.20	$	0.86	$	0.80	$	1.22
Diluted	$	0.18	$	0.77	$	0.72	$	1.09
Class B common stock:
Basic	$	0.13	$	0.56	$	0.52	$	0.79
Diluted	$	0.13	$	0.56	$	0.52	$	0.79

See notes to consolidated financial statements.

4

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited)
	13 Weeks Ended				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Net income	$	2,574	$	11,152	$	10,490	$	15,724
Other comprehensive income:
Unrealized gains on interest rate swaps, net of tax (1)	953		—		2,047		—
Amortization of pension actuarial loss, net of tax (2)	101		100		304		303
Pension settlement loss, net of tax (3)	—		83		—		954
Pension remeasurement, net of tax (4)	—		323		—		(381)
Comprehensive income	$	3,628	$	11,658	$	12,841	$	16,600

(1)Amount is net of tax of $417 and $896 for the 13 and 39 weeks ended April 24, 2021, respectively.

(2)Amounts are net of tax of $46 and $44 for the 13 weeks April 24, 2021 and April 25, 2020, respectively, and $137 and $132 for the 39 weeks ended April 24, 2021 and April 25, 2020, respectively. All amounts are reclassified from accumulated other comprehensive loss to operating and administrative expense.

(3)Amounts are net of tax of $33 and $408 for the 13 and 39 weeks ended April 25, 2020. All amounts are reclassified from accumulated other comprehensive loss to operating and administrative expense.

(4)Amounts are net of tax of $139 and $164 for the 13 and 39 weeks ended April 25, 2020.

See notes to consolidated financial statements.

5

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (In thousands) (Unaudited)
	13 Weeks Ended April 24, 2021 and April 25, 2020
	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, January 23, 2021	10,985	$	69,324	4,294	$	697	$	287,634	$	(7,454)	726	$	(13,939)	$	336,262
Net income	—	—		—	—		2,574		—		—	—		2,574
Other comprehensive income, net of tax of $463	—	—		—	—		—		1,054		—	—		1,054
Dividends	—	—		—	—		(3,262)		—		—	—		(3,262)
Share-based compensation expense	—	640		—	—		—		—		—	—		640
Balance, April 24, 2021	10,985	$	69,964	4,294	$	697	$	286,946	$	(6,400)	726	$	(13,939)	$	337,268
Balance, January 25, 2020	10,586	$	66,655	4,294	$	697	$	272,401	$	(7,972)	513	$	(9,799)	$	321,982
Net income	—	—		—	—		11,152		—		—	—		11,152
Other comprehensive income, net of tax of $216	—	—		—	—		—		506		—	—		506
Dividends	—	—		—	—		(3,259)		—		—	—		(3,259)
Treasury stock purchases	—	—		—	—		—		—		213	(4,140)		(4,140)
Restricted shares forfeited	(1)	(19)		—	—		—		—		—	—		(19)
Share-based compensation expense	385	786		—	—		—		—		—	—		786
Balance, April 25, 2020	10,970	$	67,422	4,294	$	697	$	280,294	$	(7,466)	726	$	(13,939)	$	327,008
	39 Weeks Ended April 24, 2021 and April 25, 2020
	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 25, 2020	10,985	$	68,072	4,294	$	697	$	286,241	$	(8,751)	726	$	(13,939)	$	332,320
Net income	—	—		—	—		10,490		—		—	—		10,490
Other comprehensive income, net of tax of $1,033	—	—		—	—		—		2,351		—	—		2,351
Dividends	—	—		—	—		(9,785)		—		—	—		(9,785)
Restricted shares forfeited	(8)	(24)		—	—		—		—		—	—		(24)
Share-based compensation expense	8	1,916		—	—		—		—		—	—		1,916
Balance, April 24, 2021	10,985	$	69,964	4,294	$	697	$	286,946	$	(6,400)	726	$	(13,939)	$	337,268
Balance, July 27, 2019	10,593	$	65,114	4,294	$	697	$	270,753	$	(8,342)	502	$	(9,550)	$	318,672
Net income	—	—		—	—		15,724		—		—	—		15,724
Other comprehensive income, net of tax of $376	—	—		—	—		—		876		—	—		876
Dividends	—	—		—	—		(9,697)		—		—	—		(9,697)
Treasury stock purchases	—	—		—	—		—		—		224	(4,389)		(4,389)
Restricted shares forfeited	(10)	(199)		—	—		—		—		—	—		(199)
Share-based compensation expense	387	2,507		—	—		—		—		—	—		2,507
Adjustment due to the adoption of ASU 2016-02, net of tax of $1,385	—	—		—	—		3,514		—		—	—		3,514
Balance, April 25, 2020	10,970	$	67,422	4,294	$	697	$	280,294	$	(7,466)	726	$	(13,939)	$	327,008

See notes to consolidated financial statements.

6

VILLAGE SUPER MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	39 Weeks Ended
	April 24, 2021		April 25, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	10,490	$	15,724
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,003		22,914
Non-cash share-based compensation	1,892		2,308
Loss on pension settlements	—		1,362
Deferred taxes	(1,539)		983
Provision to value inventories at LIFO	—		400
Gain on sale of property, equipment and fixtures	(1,031)		(1,252)
Changes in assets and liabilities:
Merchandise inventories	(2,837)		5,490
Patronage dividend receivable	3,464		4,408
Accounts payable to Wakefern	(6,485)		9,962
Accounts payable and accrued expenses	(4,076)		(3,153)
Accrued wages and benefits	(502)		(982)
Income taxes receivable / payable	4,611		1,278
Other assets and liabilities	2,005		(38)
Net cash provided by operating activities	32,995		59,404
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(14,901)		(47,812)
Proceeds from the sale of assets	1,076		1,261
Investment in notes receivable from Wakefern	(1,708)		(2,243)
Acquisition deposit in escrow	—		(7,600)
Acquisition of Gourmet Garage, net of cash acquired	—		64
Net cash used in investing activities	(15,533)		(56,330)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	50,000		—
Principal payments of long-term debt	(6,459)		(507)
Payments on revolving line of credit	(50,000)		—
Debt issuance costs	(222)		—
Dividends	(9,785)		(9,697)
Treasury stock purchases	—		(4,389)
Net cash used in financing activities	(16,466)		(14,593)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	996		(11,519)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	111,681		101,121
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	112,677	$	89,602
SUPPLEMENTAL DISCLOSURES OF CASH  PAYMENTS MADE FOR:
Interest	$	2,963	$	1,698
Income taxes	$	1,475	$	4,132
NONCASH SUPPLEMENTAL DISCLOSURES:
Investment in Wakefern and increase in notes payable to Wakefern	$	351	$	93
Capital expenditures included in accounts payable and accrued expenses	$	3,779	$	5,221

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 April 24, 2021 and the consolidated statements of operations, comprehensive income and cash flows for the 13 and 39 weeks ended April 24, 2021 and April 25, 2020 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 25, 2020 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 24, 2021 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								39 Weeks Ended
	April 24, 2021				April 25, 2020				April 24, 2021				April 25, 2020
	Amount		%		Amount		%		Amount		%		Amount		%
Center Store (1)	$	286,882	59.6	%	$	291,257	63.5	%	$	904,651	60.6	%	$	812,089	62.3	%
Fresh (2)	176,013		36.6		148,489		32.4		533,622		35.7		434,669		33.4
Pharmacy	16,303		3.4		17,252		3.8		49,406		3.3		52,486		4.0
Other (3)	1,895		0.4		1,294		0.3		6,368		0.4		3,872		0.3
Total Sales	$	481,093	100.0	%	$	458,292	100.0	%	$	1,494,047	100.0	%	$	1,303,116	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, gift card and lottery commissions and wholesale sales.

2. MERCHANDISE INVENTORIES

    At both April 24, 2021 and July 25, 2020, approximately 63% 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 $15,101 higher than reported at both April 24, 2021 and July 25, 2020.

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

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021				April 24, 2021
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	1,943	$	551	$	7,914	$	2,242
Conversion of Class B to Class A shares	551		—		2,242		—
Net income allocated, diluted	$	2,494	$	551	$	10,156	$	2,242
Denominator:
Weighted average shares outstanding, basic	9,850		4,294		9,850		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,144		4,294		14,144		4,294
	13 Weeks Ended				39 Weeks Ended
	April 25, 2020				April 25, 2020
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	8,431	$	2,398	$	11,892	$	3,390
Conversion of Class B to Class A shares	2,398		—		3,390		—
Net income allocated, diluted	$	10,829	$	2,398	$	15,282	$	3,390
Denominator:
Weighted average shares outstanding, basic	9,789		4,294		9,775		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,083		4,294		14,069		4,294

    Outstanding stock options to purchase Class A shares of 156 and 159 were excluded from the calculation of diluted net income per share at April 24, 2021 and April 25, 2020, respectively, as a result of their anti-dilutive effect. In addition, 398 and 397 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 April 24, 2021 and April 25, 2020, respectively, due to their anti-dilutive effect.

9

4. PENSION PLANS

Net periodic pension cost for the three defined benefit pension plans sponsored in fiscal 2021 and the four defined benefit pension plans sponsored in fiscal 2020 includes the following components:

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Service cost	$	54	$	51	$	162	$	152
Interest cost on projected benefit obligations	422		512		1,266		1,643
Expected return on plan assets	(483)		(733)		(1,449)		(2,061)
Loss on settlement	—		116		—		1,362
Amortization of net losses	147		144		441		435
Net periodic pension cost	$	140	$	90	$	420	$	1,531

On December 23, 2019, the Company terminated the Village Super Market, Inc. Retail Clerks Employees’ Retirement Plan. All participants of the plan were former employees of a store previously closed in 1994. An annuity contract totaling $1,302 was purchased with an insurance company for all participants who did not elect a lump sum distribution. Additionally, lump sum distributions related to the termination totaled $451. The plan had sufficient assets to satisfy all termination transaction obligations, and no benefit obligation or plan assets related to the Village Super Market, Inc. Retail Clerks Employees’ Retirement Plan remained as of the termination date. As a result of this termination, the Company recognized a non-cash pre-tax settlement charge totaling $669 during the 13 weeks ended January 25, 2020. This settlement charge represents the plan’s remaining unrecognized losses within accumulated other comprehensive loss as of the termination date.

Additionally, the Company recognized a settlement loss of $116 and $693 in the 13 and 39 weeks ended April 25, 2020, respectively, for a plan where benefits paid exceeded the sum of the service cost and interest cost components of net periodic pension cost. Assumptions used in the related remeasurement include a discount rate of 2.85% and long term expected rate of return on plan assets of 5.00%.

    As of April 24, 2021, the Company has not made any contributions to its pension plans in fiscal 2021.  The Company expects contributions to its defined benefit pension plans to be immaterial in fiscal 2021.

5. 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 25, 2020.  

    Included in cash and cash equivalents at April 24, 2021 and July 25, 2020 are $82,651 and $76,259, respectively, of demand deposits invested at Wakefern at overnight money market rates.

    There have been no other significant changes in the Company’s relationships or nature of transactions with related parties during the 39 weeks ended April 24, 2021.

6. COMMITMENTS and CONTINGENCIES

    The Company is involved in other 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.

10

7. DEBT

Long-term debt consists of:

	April 24, 2021		July 25, 2020
Unsecured revolving line of credit	$	—	$	50,000
Secured term loan	47,852		—
Unsecured term loan	22,003		24,694
New Market Tax Credit Financing	5,735		5,921
Total debt, excluding obligations under leases	75,590		80,615
Less current portion	6,976		6,421
Total long-term debt, excluding obligations under leases	$	68,614	$	74,194

Credit Facility

On May 6, 2020, Village entered into a credit agreement (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”) that supersedes in its entirety the prior credit agreement with Wells Fargo dated November 9, 2017. The principal purpose of the Credit Facility is to finance general corporate and working capital requirements and Village’s acquisition of certain Fairway assets. Among other things, the Credit Facility provides for a maximum loan amount of $150,500 as further set forth below:

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $125,000. Indebtedness under this agreement bears interest at the applicable LIBOR rate plus 1.10% and expires on May 6, 2025.

•An unsecured term loan with a maximum loan amount of $25,500. On May 12, 2020, Village executed a $25,500 term note, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable LIBOR rate plus 1.35%. Additionally, Village executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .41% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.76% on the term note.

•On September 1, 2020, Village converted $50,000 of its revolving line of credit to a secured converted term loan. The conversion reduced the maximum amount available for borrowing under the revolving line of credit from $125,000 to $75,000. The term loan bears interest at the applicable LIBOR rate plus 1.50% and is repayable in equal monthly installments based on a fifteen-year amortization schedule beginning on the conversion date. Additionally, Village previously executed a forward interest rate swap, effective on the conversion date, for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .69% per annum for 15 years, resulting in a fixed effective interest rate of 2.19% on the converted 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.

The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at April 24, 2021), 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 April 24, 2021.

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.

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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.

8. DERIVATIVES AND HEDGING ACTIVITIES

The Company is exposed to interest rate risk arising from fluctuations in LIBOR 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.

In 2020, the Company executed two interest rate swaps with an aggregate notional value of $75,500 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 LIBOR. The swaps replaced the applicable LIBOR 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 loss and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $86 and $234 during the 13 and 39 weeks ended April 24, 2021, respectively, from Accumulated other comprehensive loss to Interest expense.

The notional value of the interest rate swaps were $70,216 as of April 24, 2021. The fair value of interest rate swaps recorded in other assets is $2,022 as of April 24, 2021.

9. BUSINESS ACQUISITION

On May 14, 2020, Village completed its acquisition of certain assets, including five supermarkets averaging 52,000 sq. ft. (30,000 selling sq. ft.), a production distribution center (the “PDC”) and the intellectual property of Fairway Group Holdings Corp. and certain of its subsidiaries (“Fairway”), including the names “Fairway” and “Fairway Markets.” Four of the supermarkets are in Manhattan, specifically the Upper West Side, Upper East Side, Kips Bay and Chelsea locations, and a fifth store is located in Pelham, NY. The acquisition was effectuated pursuant to the Asset Purchase Agreement (the "APA"), entered into on January 20, 2020, revised on March 25, 2020 and approved by the United States Bankruptcy Court for the Southern District of New York through a Sale Order entered on April 20, 2020. Village paid $73,622 for the Fairway assets, net

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of cash acquired, and assumed certain liabilities, consisting primarily of those arising from acquired leases. Additionally, at the time of closing Village received a $2,035 credit arising from the breakup of Village’s initial “stalking horse” bid under the January 20, 2020 Asset Purchase Agreement. The credit was recognized as a reduction in operating and administrative expense in the fourth quarter of fiscal 2020. The Fairway acquisition expands our presence in New York City under an iconic city brand and provides Village the ability to expand centralized food production to support stores under all of our banners.

Village accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. In connection with this acquisition, the Company recorded $11,540 of goodwill attributable to the assembled workforce and cost synergies. The goodwill related to this acquisition is deductible for tax purposes. Additionally, the Company recorded a $14,200 indefinite-lived intangible asset related to the trade name. The fair value of the intangible asset was determined based on the discounted cash flow model using the relief from royalty method. The fair value of the property, equipment and fixtures were determined based on the indirect cost approach in which current costs that were not new were adjusted for all forms of depreciation. The Company also evaluated the fair value of the leases assumed in the acquisition, which evaluated comparable rents in the areas of the locations. Leases were determined to be at market apart from one location. For this location, the Company recorded a favorable lease of $4,360 within operating lease assets. The favorable lease is being amortized over the remaining duration of the lease. Transaction costs were expensed as incurred. The final allocation of the purchase price consideration to the assets acquired and the liabilities assumed has been completed.

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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”) operates a chain of twenty-nine ShopRite supermarkets, five Fairway Markets and three Gourmet Garage specialty markets located in New Jersey, New York, Pennsylvania and Maryland. 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.

    On May 14, 2020, Village completed its acquisition of certain assets, including five supermarkets averaging 52,000 sq. ft. (30,000 selling sq. ft.), a production distribution center (the “PDC”) and the intellectual property of Fairway Group Holdings Corp. and certain of its subsidiaries (“Fairway”), including the names “Fairway” and “Fairway Markets” for $73,622, net of cash acquired. Four of the supermarkets are in Manhattan, specifically the Upper West Side, Upper East Side, Kips Bay and Chelsea locations, and a fifth store is located in Pelham, NY. Like Village, Fairway traces its roots back to a neighborhood market over 80 years ago. 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. The PDC is a centralized commissary that promotes production efficiency, product quality and consistency in the bakery, prepared foods, meals to go and other perishable product categories. Production costs at the PDC, including materials, labor and overhead, are included in Cost of sales. The Fairway acquisition expands our presence in New York City under an iconic city brand and provides Village the ability to expand centralized food production to support stores under all of our banners.

On February 22, 2021, Village closed the ShopRite store located in Silver Spring, Maryland. Despite continued investment in marketing and promotional programs, the store was unable to generate sales at a level sufficient to maintain profitability, resulting in its closure. The impacts associated with this closure were not material to the consolidated financial statements.

On November 1, 2019, Village opened an 82,000 sq. ft. (52,000 selling sq. ft.) ShopRite in Stroudsburg, Pennsylvania and replaced our existing 53,000 sq. ft. store.

    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. Village competes by using low pricing, providing a superior customer service experience and a broad range of consistently available quality products, including our own brands portfolio. In October 2019, ShopRite introduced the Right Price Promise pricing strategy, a commitment to everyday low prices on the items customers purchase most frequently. The ShopRite Price Plus preferred customer program enables Village to offer continuity programs, focus on target marketing initiatives and to offer discounts and attach digital coupons directly to a customer's Price Plus card.

In November 2019, ShopRite launched the Bowl & Basket and Paperbird own brands. Bowl & Basket foods pair thoughtfully selected ingredients at a budget friendly price and Paperbird offers a line of newly designed household products. ShopRite expects to add nearly 3,500 Bowl & Basket foods and Paperbird household products from their launch in November 2019 through fiscal 2021. The introduction of Bowl & Basket and Paperbird follows the 2016 launch of ShopRite’s Wholesome Pantry brands, which include the Wholesome Pantry Organic line as well as a range of products free from 110 ingredients and artificial additives and preservatives.

The Company’s stores, six of which are owned, average 55,000 total square feet. These larger store sizes enable the Company’s stores to provide a “one-stop” shopping experience and to feature expanded higher margin specialty departments such as an onsite bakery, an expanded delicatessen, a variety of natural and organic foods, ethnic and international foods, prepared foods and pharmacies. Many of our stores emphasize a Power Alley, which features high margin, fresh, convenience offerings in an area within the store that provides quick customer entry and exit for those customers shopping for today's lunch or dinner. Certain of our stores include the Village Food Garden concept featuring a restaurant style kitchen, and several kiosks offering a wide variety of store prepared specialty foods for both take-home and in-store dining.

    Online grocery ordering for in-store pick up or home delivery through ShopRite from Home is available in all of our ShopRite stores. Customers can browse our circular, create and edit shopping lists and use ShopRite from Home through

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shoprite.com or the ShopRite app. Additionally, the ShopRite Order Express app enables customers to pre-order deli, catering, specialty occasion cakes and other items. Online ordering for home delivery through third party services is available in all Fairway and Gourmet Garage stores. In April 2020 we also added online ordering for home delivery through third party services in all ShopRite stores.

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.

COVID-19

The Company was significantly impacted by the COVID-19 outbreak as it operates in and around one of the early U.S. epicenters of the health crisis. The Company is classified as an essential business and has remained open to serve our customers and the communities in which we operate. We continue to experience changes in customer shopping habits, shifts in product mix and increased demand through digital channels as a result of the COVID-19 pandemic. Demand remains high in most stores, however sales at Fairway and Gourmet Garage locations in Manhattan have been negatively impacted by localized residential population migration out of the city and less commuter and tourist traffic. We expect continued uncertainty in our business as well as the local and regional economies in which we operate depending on the duration and intensity of the COVID-19 pandemic (see the "Outlook" section below for further discussion of risks and uncertainties).

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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				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Sales	100.00	%	100.00	%	100.00	%	100.00	%
Cost of sales	72.27		71.66		72.34		72.27
Gross profit	27.73		28.34		27.66		27.73
Operating and administrative expense	25.18		23.34		24.90		24.39
Depreciation and amortization	1.74		1.68		1.74		1.76
Operating income	0.81		3.32		1.02		1.58
Interest expense	(0.21)		(0.12)		(0.20)		(0.13)
Interest income	0.19		0.20		0.18		0.25
Income before taxes	0.79		3.40		1.00		1.70
Income taxes	0.25		0.97		0.30		0.49
Net income	0.54	%	2.43	%	0.70	%	1.21	%

    Sales.  Sales were $481,093 in the 13 weeks ended April 24, 2021, an increase of 5.0% compared to the 13 weeks ended April 25, 2020.  Sales increased in the 13 weeks ended April 24, 2021 due to the Fairway acquisition on May 14, 2020 partially offset by a same store sales decrease of 5.5%.

Sales were $1,494,047 in the 39 weeks ended April 24, 2021, an increase of 14.7% compared to the 39 weeks ended April 25, 2020. Sales increased in the 39 weeks ended April 24, 2021 due to the Fairway acquisition on May 14, 2020, the opening of the Stroudsburg replacement store on November 1, 2019 and a same store sales increase of 2.3%.

Same store sales decreased in the 13 weeks ended April 24, 2021 due primarily to the unprecedented sales levels at the beginning of the COVID-19 outbreak in our trade area in March 2020. Since the beginning of the COVID-19 pandemic, we have experienced higher average basket sizes and decreased transaction counts as customers have consolidated shopping trips. Additionally, digital sales growth accelerated through both ShopRite from Home and partnerships with online grocery picking and delivery services, increasing 127% and 155% in the 13 and 39 weeks ended April 24, 2021, respectively, compared to the 13 and 39 weeks ended April 25, 2020. During the COVID-19 pandemic, sales at Fairway and Gourmet Garage locations in Manhattan during the 13 and 39 weeks ended April 24, 2021 have been significantly negatively impacted due primarily to residential population migration out of the city and less commuter and tourist traffic.

On a two-year stacked basis, same store sales increased 7.7% and 7.4% in the 13 and 39 weeks ended April 24, 2021, respectively, compared to the 13 and 39 weeks ended April 27, 2019.

The Company expects same store sales in fiscal 2021 to range from an increase of 1.0% to 2.0% compared to fiscal 2020. New stores and replacement stores 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 .61% in the 13 weeks ended April 24, 2021 compared to the 13 weeks ended April 25, 2020. Higher margins associated with Fairway increased gross profit (.70%) despite higher costs as we transition and integrate commissary operations into our business. Excluding the impact of Fairway, gross profit as a percentage of sales decreased 1.31% due primarily to decreased departmental gross margin percentages (1.00%), increased warehouse assessment charges from Wakefern (.59%) and higher promotional spending (.21%) partially offset by favorable change in product mix (.46%), and increased patronage dividends and rebates received from Wakefern (.03%). These trends are due primarily to the disproportionately high sales levels at the beginning of the pandemic during the 13 weeks ended April 25, 2020 which favorably impacted departmental gross profit margins through reduced shrink costs, reduced promotional spending due to decreased sale item penetration, increased sales leverage on fixed warehouse assessment charges from Wakefern and resulted in a lesser mix of higher margin perishable items. Additionally, departmental gross profits decreased due partly to continued price investments as part of ShopRite's Right Price Promise pricing strategy.

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Gross profit as a percentage of sales decreased .07% in the 39 weeks ended April 24, 2021 compared to the 39 weeks ended April 25, 2020. Higher margins associated with Fairway increased gross profit (.62%) despite higher costs as we transition and integrate commissary operations into our business. Excluding the impact of Fairway, gross profit as a percentage of sales decreased .70% due primarily to decreased departmental gross margin percentages (.73%), increased warehouse assessment charges from Wakefern (.26%) partially offset by a favorable change in product mix (.14%), lower promotional spending (.12%) and increased patronage dividends and rebates received from Wakefern (.03%). Departmental gross profits decreased due partly to continued price investments as part of from ShopRite's Right Price Promise pricing strategy.

    Operating and Administrative Expense.  Operating and administrative expense as a percentage of sales increased 1.84% in the 13 weeks ended April 24, 2021 compared to the 13 weeks ended April 25, 2020. The 13 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, (.08%) and the 13 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 (.27%) and a pension settlement charge of (.03%). Excluding these items, operating and administrative expense as a percentage of sales increased 1.68% in the 13 weeks ended April 24, 2021 compared to the 13 weeks ended April 25, 2020 due primarily to increased occupancy costs as a result of the Fairway acquisition (0.99%), increased external fees and transportation costs associated with digital sales (.54%), increased payroll (.83%) and increased facility costs, including utilities, repairs and maintenance (.36%), partially offset by decreased costs related to COVID-19, including enhanced wages and benefits, security and outside sanitation services (1.13%). Payroll and facilities costs increased primarily due to reduced sales leverage, increasing wage rates and the addition of Fairway.

Operating and administrative expense as a percentage of sales increased .51% in the 39 weeks ended April 24, 2021 compared to the 39 weeks ended April 25, 2020. The 39 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, (.03%) and the 39 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 (.09%), a non-cash pension charge related to the termination of a company-sponsored pension plan and other pension settlement charges (.10%) (see note 4 to the consolidated financial statements), pre-opening costs of the Stroudsburg, Pennsylvania replacement store (.10%) and store closure costs and charges to write off the lease asset and related obligations for the old Stroudsburg store (.06%). Excluding these items, operating and administrative expense as a percentage of sales increased .71% in the 39 weeks ended April 24, 2021 compared to the 39 weeks ended April 25, 2020 due primarily to increased occupancy costs due primarily to the Fairway acquisition (.85%) and increased external fees and transportation costs associated with digital sales (.49%), partially offset by decreased costs related to COVID-19, including enhanced wages and benefits, security and outside sanitation services (.30%) and lower payroll and fringe benefit costs (.30%). Payroll and fringe benefits decreased primarily due to leverage from higher sales and reductions in service department offerings partially offset by the addition of Fairway and growth of ShopRite from Home.

    Depreciation and Amortization.  Depreciation and amortization expense increased in the 13 and 39 weeks ended April 24, 2021 compared to the 13 and 39 weeks ended April 25, 2020 due primarily to depreciation related to the Fairway acquisition.

Interest Expense.  Interest expense increased in the 13 and 39 weeks ended April 24, 2021 compared to the 13 and 39 weeks ended April 25, 2020 due primarily to interest expense related to the credit agreement entered into on May 6, 2020 (see note 7 to the consolidated financial statements).

Interest Income.  Interest income decreased in the 13 and 39 weeks ended April 24, 2021 compared to the 13 and 39 weeks ended April 25, 2020 due primarily to lower interest rates for amounts invested in variable rate notes receivable from Wakefern and demand deposits invested at Wakefern.

Income Taxes.  The effective income tax rate was 31.5% and 30.3% in the 13 and 39 weeks ended April 24, 2021, compared to 28.4% and 28.9% in the 13 and 39 weeks ended April 25, 2020, respectively. The increase in the effective income tax rate is due primarily to favorable return to provision adjustments in the 13 and 39 weeks ended April 25, 2020.

Net Income.  Net income was $2,574 in the 13 weeks ended April 24, 2021 compared to $11,152 in the 13 weeks ended April 25, 2020. The 13 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, of $278 (net of tax) and the 13 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 of $854 (net of tax) and pension settlement charges of $83 (net of tax). Excluding these items, net income decreased 78% in the 13 weeks ended April 24, 2021 compared to the prior year. Net income decreased compared to the prior year period due primarily to the sharp rise in sales volumes at the beginning of the COVID-19 pandemic in March 2020 that resulted in higher gross profit margins and sales leverage on operating expenses during the 13 weeks ended April 25, 2020. Additionally, the 13 weeks ended April 24, 2021

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were negatively impacted by lower sales volumes in Manhattan and higher costs as we transition and integrate commissary operations into our business.

Net income was $10,490 in the 39 weeks ended April 24, 2021 compared to $15,724 in the 39 weeks ended April 25, 2020. The 39 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, of $278 (net of tax). The 39 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 of $854 (net of tax), a non-cash pension charge related to the termination of a company-sponsored pension plan and other pension settlement charges of $954 (net of tax), pre-opening costs related to the Stroudsburg, Pennsylvania replacement store of $891 (net of tax) and store closure costs and charges to write off the lease asset and related obligations for the old Stroudsburg store of $557 (net of tax). Excluding these items, net income decreased 40% in the 39 weeks ended April 24, 2021 compared to the prior year. Net income decreased due primarily to lower sales volumes in Manhattan and higher costs as we transition and integrate commissary operations into our business.

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 and goodwill, accounting for patronage dividends earned as a stockholder of Wakefern and accounting for pension plans, are described in the Company’s Annual Report on Form 10-K for the year ended July 25, 2020. As of April 24, 2021, 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 $32,995 in the 39 weeks ended April 24, 2021 compared to $59,404 in the corresponding period of the prior year.  The change in cash flows from operating activities in fiscal 2021 was primarily due to changes in working capital and lower net income. Working capital changes, including Other assets and liabilities, decreased cash flows from operating activities by $3,820 in fiscal 2021 compared to an increase of $16,965 in fiscal 2020. The change in impact of working capital is due primarily to the significant increase in inventory turnover in March and April 2020 at the beginning of the COVID-19 outbreak that lowered stock levels and increased accounts payable to Wakefern.

During the 39 weeks ended April 24, 2021, Village used cash to fund capital expenditures of $14,901, dividends of $9,785, principal payment of long-term debt of $6,459 and additional investments of $1,708 in notes receivable from Wakefern.  Capital expenditures primarily include costs associated with the integration of Fairway stores, completion of one major remodel, continued expansion of ShopRite from Home and self-checkout.

    Village has budgeted capital expenditures of $25,000 in fiscal 2021. Planned expenditures include several smaller remodels, continued expansion of ShopRite from Home and self-checkout, and various merchandising, technology, equipment and facility upgrades. The Company’s primary sources of liquidity in fiscal 2021 are expected to be cash and cash equivalents on hand at April 24, 2021 and operating cash flow generated in fiscal 2021.

    At April 24, 2021, the Company held variable rate notes receivable due from Wakefern of $27,022 that earn interest at the prime rate plus 1.25% and mature on August 15, 2022 and $27,694 that earn interest at the prime rate plus .75% and mature on February 15, 2024. 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.

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    Working capital was $40,693 at April 24, 2021 compared to $34,522 at July 25, 2020. Working capital ratios at the same dates were 1.27 and 1.21 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.

Credit Facility

On May 6, 2020, Village entered into a credit agreement (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”) that supersedes in its entirety the prior credit agreement with Wells Fargo dated November 9, 2017. The principal purpose of the Credit Facility is to finance general corporate and working capital requirements and Village’s acquisition of certain Fairway assets. Among other things, the Credit Facility provides for a maximum loan amount of $150,500 as further set forth below:

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $125,000. Indebtedness under this agreement bears interest at the applicable LIBOR rate plus 1.10% and expires on May 6, 2025.

•An unsecured term loan with a maximum loan amount of $25,500. On May 12, 2020, Village executed a $25,500 term note, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable LIBOR rate plus 1.35%. Additionally, Village executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .41% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.76% on the term note.

•On September 1, 2020, Village converted $50,000 of its revolving line of credit to a secured converted term loan. The conversion reduced the maximum amount available for borrowing under the revolving line of credit from $125,000 to $75,000. The term loan bears interest at the applicable LIBOR rate plus 1.50% and is repayable in equal monthly installments based on a fifteen-year amortization schedule beginning on the conversion date. Additionally, Village previously executed a forward interest rate swap, effective on the conversion date, for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .69% per annum for 15 years, resulting in a fixed effective interest rate of 2.19% on the converted 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.

The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at April 24, 2021), 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 April 24, 2021.

    There have been no other substantial changes as of April 24, 2021 to the contractual obligations and commitments discussed in the Company’s Annual Report on Form 10-K for the year ended July 25, 2020.

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

•The Company expects same store sales in fiscal 2021 to range from an increase of 1.0% to 2.0%.

•Excluding the impact of acquired stores, we expect decreased gross profit margins due to continued investments in retail pricing through the Right Price Promise commitment to everyday low pricing on the items customers purchase most frequently that was introduced in October 2019.

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•We have budgeted capital expenditures of $25,000 in fiscal 2021. Planned expenditures include several smaller remodels, continued expansion of ShopRite from Home and self-checkout, and various merchandising, technology, equipment and facility upgrades.

•The Board’s current intention is to continue to pay quarterly dividends in 2021 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 2021 to be in the range of 30.0% - 31.0%.

•We expect approximately $1,400 of net periodic pension costs in fiscal 2021 related to the three Company sponsored defined benefit pension plans. The Company expects contributions to its defined benefit pension plans to be immaterial in fiscal 2021.

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

•The Company operates in and around one of the epicenters of the COVID-19 health crisis. The Company is classified as an essential business and has remained open to serve our customers and the communities in which we operate. The continuing impact on our business, including the length and impact of stay-at-home orders and/or regional quarantines, labor shortages and employment trends, disruptions to supply chains, higher operating costs, the form and impact of economic stimulus and general overall economic instability, is uncertain at this time and could have a material adverse effect on our business, results of operations, financial condition and cash flows. Furthermore, the impact of the COVID-19 health crisis may exacerbate other risks and uncertainties included herein, which could have a material effect on the Company.

•The Fairway acquisition involves a number of risks, uncertainties and challenges, including under-performance relative to our expectations, additional capital requirements, unforeseen expenses or delays, imprecise assumptions or our inability to achieve projected cost savings or other synergies, competitive factors in the marketplace and difficulties integrating the business, including merging company cultures, cultivating brand strategy, expansion of food production and conforming the acquired company's technology, standards, processes, procedures and controls. Sales and operating profits have underperformed compared to initial expectations due primarily to residential population migration out of Manhattan and less commuter and tourist traffic during the COVID-19 pandemic. Many of these potential circumstances are outside of our control and any of them could result in an adverse impact on our results of operations, financial condition and cash flows and the diversion of management time and resources.

•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, 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.

20

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 or solvency could have an adverse effect on Village’s results of operations.

•Approximately 90% 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.

•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 and 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 ShopRite from Home 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.

21

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.

22

RELATED PARTY TRANSACTIONS

    See note 5 to the unaudited consolidated financial statements for information on related party transactions.

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 April 24, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.

23

PART II - OTHER INFORMATION

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

24

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: June 3, 2021	/s/ Robert P. Sumas
	Robert P. Sumas
	(Chief Executive Officer)
Dated: June 3, 2021	/s/ John Van Orden
	John Van Orden
	(Chief Financial Officer)

25

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: June 3, 2021	/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: June 3, 2021
	/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 April 24, 2021 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

June 3, 2021

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 April 24, 2021 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

June 3, 2021

EX-99.1

Exhibit 99.1

VILLAGE SUPER MARKET, INC.

REPORTS RESULTS FOR THE THIRD QUARTER ENDED

APRIL 24, 2021

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

Springfield, New Jersey – June 3, 2021 – Village Super Market, Inc. (NASDAQ:VLGEA) (the "Company" or "Village") today reported its results of operations for the third quarter ended April 24, 2021.

Net income was $2,574,000 in the 13 weeks ended April 24, 2021 compared to $11,152,000 in the 13 weeks ended April 25, 2020. The 13 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, of $278,000 (net of tax) and the 13 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 of $854,000 (net of tax) and pension settlement charges of $83,000 (net of tax). Excluding these items, net income decreased 78% in the 13 weeks ended April 24, 2021 compared to the prior year. Net income decreased compared to the prior year period due primarily to the sharp rise in sales volumes at the beginning of the COVID-19 pandemic in March 2020 that resulted in higher gross profit margins and sales leverage on operating expenses during the 13 weeks ended April 25, 2020. Additionally, the 13 weeks ended April 24, 2021 were negatively impacted by lower sales volumes in Manhattan and higher costs as we transition and integrate commissary operations into our business.

Sales were $481,093,000 in the 13 weeks ended April 24, 2021, an increase of 5.0% compared to the 13 weeks ended April 25, 2020. Sales increased in the 13 weeks ended April 24, 2021 due to the Fairway acquisition on May 14, 2020 partially offset by a same store sales decrease of 5.5%. Same store sales decreased in the 13 weeks ended April 24, 2021 due primarily to the unprecedented sales levels at the beginning of the COVID-19 outbreak in our trade area in March 2020. On a two-year stacked basis, same store sales increased 7.7% in the 13 weeks ended April 24, 2021 compared to the 13 weeks ended April 27, 2019.

The Company expects same store sales in fiscal 2021 to range from an increase of 1.0% to 2.0% compared to fiscal 2020. New stores and replacement stores 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 27.73% in the 13 weeks ended April 24, 2021 compared to 28.34% in the 13 weeks ended April 25, 2020. Higher margins associated with Fairway increased gross profit (.70%) despite higher costs as we transition and integrate commissary operations into our business. Excluding the impact of Fairway, gross profit as a percentage of sales decreased 1.31% due primarily to decreased departmental gross margin percentages (1.00%), increased warehouse assessment charges from Wakefern (.59%) and higher promotional spending (.21%) partially offset by favorable changes in product mix (.46%), and increased patronage dividends and rebates received from Wakefern (.03%). These trends are due primarily to the disproportionately high sales levels at the beginning of the pandemic during the 13 weeks ended April 25, 2020 which favorably impacted departmental gross profit margins through reduced shrink costs, reduced promotional spending due to decreased sale item penetration, increased sales leverage on fixed warehouse assessment charges from Wakefern and resulted in a lesser mix of higher margin perishable items. Additionally, departmental gross profits decreased due partly to continued price investments as part of ShopRite's Right Price Promise pricing strategy.

Operating and administrative expense as a percentage of sales increased to 25.18% in the 13 weeks ended April 24, 2021 compared to 23.34% in the 13 weeks ended April 25, 2020. The 13 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the Silver Spring store, net of store closing costs, (.08%) and the 13 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 (.27%) and a pension settlement charge of (.03%). Excluding these items, operating and administrative expense as a percentage of sales increased 1.68% in the 13 weeks ended April 24, 2021 compared to the 13 weeks ended April 25, 2020 due primarily to increased occupancy costs as a result of the Fairway acquisition (0.99%), increased external fees and transportation costs associated with digital sales (.54%), increased payroll (.83%) and increased facility costs, including utilities, repairs and maintenance (.36%), partially offset by decreased costs related to COVID-19, including enhanced wages and benefits, security and outside sanitation services (1.13%). Payroll and facilities costs increased primarily due to reduced sales leverage, increasing wage rates and the addition of Fairway.

Net income was $10,490,000 in the 39 weeks ended April 24, 2021 compared to $15,724,000 in the 39 weeks ended April 25, 2020. The 39 weeks ended April 24, 2021 includes a gain on the sale of a pharmacy prescription list related to the

Exhibit 99.1

Silver Spring store, net of store closing costs, of $278,000 (net of tax). The 39 weeks ended April 25, 2020 includes a gain on the sale of pharmacy prescription lists related to three store pharmacies closed in March 2020 of $854,000 (net of tax), a non-cash pension charge related to the termination of a company-sponsored pension plan and other pension settlement charges of $954,000 (net of tax), pre-opening costs related to the Stroudsburg, Pennsylvania replacement store of $891,000 (net of tax) and store closure costs and charges to write off the lease asset and related obligations for the old Stroudsburg store of $557,000 (net of tax). Excluding these items, net income decreased 40% in the 39 weeks ended April 24, 2021 compared to the prior year. Net income decreased due primarily to lower sales volumes in Manhattan and higher costs as we transition and integrate commissary operations into our business.

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: risks and uncertainties related to the COVID-19 pandemic, including among others, the duration and severity of the pandemic, shifts in customers buying patterns, disruptions to supply chains, inability of the workforce to work due to illness, quarantine or government mandates, including travel restrictions and stay at home orders, the effectiveness and duration of COVID-19 stimulus packages; 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; risks, uncertainties and challenges associated with the Fairway acquisition, including under-performance relative to our expectations, additional capital requirements, unforeseen expenses or delays, imprecise assumptions or our inability to achieve projected cost savings or other synergies, competitive factors in the marketplace and difficulties integrating the business, including merging company cultures, cultivating brand strategy, expansion of food production and conforming the acquired company's technology, standards, processes, procedures and controls; 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; 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						39 Weeks Ended
	April 24, 2021			April 25, 2020			April 24, 2021			April 25, 2020
Sales	$	481,093		$	458,292		$	1,494,047		$	1,303,116
Cost of sales	347,671			328,391			1,080,817			941,722
Gross profit	133,422			129,901			413,230			361,394
Operating and administrative expense	121,156			106,987			371,968			317,861
Depreciation and amortization	8,418			7,678			25,925			22,914
Operating income	3,848			15,236			15,337			20,619
Interest expense	(994)			(563)			(2,963)			(1,698)
Interest income	904			910			2,670			3,199
Income before income taxes	3,758			15,583			15,044			22,120
Income taxes	1,184			4,431			4,554			6,396
Net income	$	2,574		$	11,152		$	10,490		$	15,724
Net income per share:
Class A common stock:
Basic	$	0.20		$	0.86		$	0.80		$	1.22
Diluted	$	0.18		$	0.77		$	0.72		$	1.09
Class B common stock:
Basic	$	0.13		$	0.56		$	0.52		$	0.79
Diluted	$	0.13		$	0.56		$	0.52		$	0.79
Gross profit as a % of sales	27.73		%	28.34		%	27.66		%	27.73		%
Operating and administrative expense as a % of sales	25.18		%	23.34		%	24.90		%	24.39		%

XML

COVER PAGE - shares	9 Months Ended
	Apr. 24, 2021	Jun. 03, 2021
Document Type	10-Q
Document Period End Date	Apr. 24, 2021
Document Quarterly Report	true
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	--07-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q3
Amendment Flag	false
Common Class A
Entity Common Stock, Shares Outstanding		10,259,088
Common Class B
Entity Common Stock, Shares Outstanding		4,293,748

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 24, 2021	Jul. 25, 2020
Current assets
Cash and cash equivalents	$ 112,677	$ 111,681
Merchandise inventories	44,972	42,135
Patronage dividend receivable	7,740	11,204
Income Taxes Receivable, Current	8,190	12,801
Other current assets	19,803	19,499
Total current assets	193,382	197,320
Property, equipment and fixtures, net	255,648	269,741
Operating lease assets	297,256	309,756
Notes receivable from Wakefern	54,716	53,008
Investment in Wakefern	30,483	29,462
Goodwill	24,190	24,190
Other assets	34,403	32,069
Total assets	890,078	915,546
Current liabilities
Operating lease obligations	21,199	19,121
Capital and financing lease obligations	515	466
Notes payable to Wakefern	521	303
Current portion of debt	6,976	6,421
Accounts payable to Wakefern	75,626	83,045
Accounts payable and accrued expenses	24,705	29,793
Accrued wages and benefits	23,147	23,649
Total current liabilities	152,689	162,798
Long-term debt
Operating lease obligations	285,883	298,027
Finance lease obligations	22,518	23,078
Notes payable to Wakefern	413	882
Long-term debt	68,614	74,194
Total long-term debt	377,428	396,181
Pension liabilities	6,146	6,166
Other liabilities	16,547	18,081
Commitments and contingencies
Shareholders' equity
Preferred stock, no par value: Authorized 10,000 shares, none issued	0	0
Retained earnings	286,946	286,241
Accumulated other comprehensive loss	(6,400)	(8,751)
Total shareholders’ equity	337,268	332,320
Total liabilities and shareholders’ equity	890,078	915,546
Common Class A
Shareholders' equity
Common Stock	69,964	68,072
Less treasury stock, Class A, at cost: 496 shares at July 28, 2018 and 477 shares at July 29, 2017	(13,939)	(13,939)
Common Class B
Shareholders' equity
Common Stock	$ 697	$ 697

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Apr. 24, 2021	Jul. 25, 2020
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)	10,985,000	10,985,000
Treasury shares	726,000	726,000
Common Class B
Common stock shares authorized (in shares)	20,000,000	20,000,000
Common stock shares issued (in shares)	4,294,000	4,294,000
Common stock shares outstanding (in shares)	4,294,000	4,294,000

XML

CONSOLIDATED STATMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Sales	$ 481,093	$ 458,292	$ 1,494,047	$ 1,303,116
Cost of sales	347,671	328,391	1,080,817	941,722
Gross profit	133,422	129,901	413,230	361,394
Operating and administrative expense	121,156	106,987	371,968	317,861
Depreciation and amortization	8,418	7,678	25,925	22,914
Operating income	3,848	15,236	15,337	20,619
Interest expense	(994)	(563)	(2,963)	(1,698)
Interest income	904	910	2,670	3,199
Income before income taxes	3,758	15,583	15,044	22,120
Income taxes	1,184	4,431	4,554	6,396
Net income	$ 2,574	$ 11,152	$ 10,490	$ 15,724
Common Class A
Net income per share:
Basic (in dollars per share)	$ 0.20	$ 0.86	$ 0.80	$ 1.22
Diluted (in dollars per share)	0.18	0.77	0.72	1.09
Common Class B
Net income per share:
Basic (in dollars per share)	0.13	0.56	0.52	0.79
Diluted (in dollars per share)	$ 0.13	$ 0.56	$ 0.52	$ 0.79

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net income	$ 2,574	$ 11,152	$ 10,490	$ 15,724
Other comprehensive income:
Unrealized gains on interest rate swaps, net of tax	953	0	2,047	0
Amortization of pension actuarial loss, net of tax	101	100	304	303
Pension settlement loss, net of tax	0	83	0	954
Pension remeasurement, net of tax	0	323	0	(381)
Comprehensive income	$ 3,628	$ 11,658	$ 12,841	$ 16,600

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Tax expense (benefit) on unrealized losses on interest rate swaps	$ 417		$ 896
Tax of amortization of pension actuarial loss	$ 46	$ 44	$ 137	$ 132
Tax on pension settlement loss		33		408
Tax (expense) benefit on pension remeasurement		$ (139)		$ 164

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member] Common Class A	Common Stock [Member] Common Class B	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]
Balance (in shares) at Jul. 27, 2019			10,593	4,294				502
Balance at Jul. 27, 2019	$ 318,672	$ 3,514	$ 65,114	$ 697	$ 270,753	$ 3,514	$ (8,342)	$ (9,550)
Net income	15,724				15,724
Other comprehensive income, net of tax	876						876
Dividends	(9,697)				(9,697)
Treasury stock purchases (in shares)								224
Restricted shares forfeited	(4,389)							$ (4,389)
Restricted shares forfeited (in shares)			(10)
Restricted shares forfeited	(199)		$ (199)
Share-based compensation expense (in shares)			387
Share-based compensation expense	2,507		$ 2,507
Balance (in shares) at Apr. 25, 2020			10,970	4,294				726
Balance at Apr. 25, 2020	327,008		$ 67,422	$ 697	280,294		(7,466)	$ (13,939)
Balance (in shares) at Jan. 25, 2020			10,586	4,294				513
Balance at Jan. 25, 2020	321,982		$ 66,655	$ 697	272,401		(7,972)	$ (9,799)
Net income	11,152				11,152
Other comprehensive income, net of tax	506						506
Dividends	(3,259)				(3,259)
Treasury stock purchases (in shares)								213
Restricted shares forfeited	(4,140)							$ (4,140)
Restricted shares forfeited (in shares)			(1)
Restricted shares forfeited	(19)		$ (19)
Share-based compensation expense (in shares)			385
Share-based compensation expense	786		$ 786
Balance (in shares) at Apr. 25, 2020			10,970	4,294				726
Balance at Apr. 25, 2020	327,008		$ 67,422	$ 697	280,294		(7,466)	$ (13,939)
Balance (in shares) at Jul. 25, 2020			10,985	4,294				726
Balance at Jul. 25, 2020	332,320		$ 68,072	$ 697	286,241		(8,751)	$ (13,939)
Net income	10,490				10,490
Other comprehensive income, net of tax	2,351						2,351
Dividends	(9,785)				(9,785)
Restricted shares forfeited (in shares)			(8)
Restricted shares forfeited	(24)		$ (24)
Share-based compensation expense (in shares)			8
Share-based compensation expense	1,916		$ 1,916
Balance (in shares) at Apr. 24, 2021			10,985	4,294				726
Balance at Apr. 24, 2021	337,268		$ 69,964	$ 697	286,946		(6,400)	$ (13,939)
Balance (in shares) at Jan. 23, 2021			10,985	4,294				726
Balance at Jan. 23, 2021	336,262		$ 69,324	$ 697	287,634		(7,454)	$ (13,939)
Net income	2,574				2,574
Other comprehensive income, net of tax	1,054						1,054
Dividends	(3,262)				(3,262)
Share-based compensation expense	640		$ 640
Balance (in shares) at Apr. 24, 2021			10,985	4,294				726
Balance at Apr. 24, 2021	$ 337,268		$ 69,964	$ 697	$ 286,946		$ (6,400)	$ (13,939)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Statement of Stockholders' Equity [Abstract]
Tax expense (benefit) associated with other comprehensive loss and income	$ 463	$ 216	$ 1,033	$ 376
Tax expense for adjustment due to the adoption of ASU 2016-02				$ 1,385

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,490	$ 15,724
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,003	22,914
Non-cash share-based compensation	1,892	2,308
Loss on pension settlements	0	1,362
Deferred taxes	(1,539)	983
Provision to value inventories at LIFO	0	400
Gain on sale of property, equipment and fixtures	(1,031)	(1,252)
Changes in assets and liabilities:
Merchandise inventories	(2,837)	5,490
Patronage dividend receivable	3,464	4,408
Accounts payable to Wakefern	(6,485)	9,962
Accounts payable and accrued expenses	(4,076)	(3,153)
Accrued wages and benefits	(502)	(982)
Income taxes receivable / payable	4,611	1,278
Other assets and liabilities	2,005	(38)
Net cash provided by operating activities	32,995	59,404
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(14,901)	(47,812)
Proceeds from the sale of assets	1,076	1,261
Investment in notes receivable from Wakefern	(1,708)	(2,243)
Acquisition deposit in escrow	0	(7,600)
Acquisition of Gourmet Garage, net of cash acquired	0	64
Net cash used in investing activities	(15,533)	(56,330)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of long-term debt	50,000	0
Principal payments of long-term debt	(6,459)	(507)
Payments on revolving line of credit	(50,000)	0
Debt issuance costs	(222)	0
Dividends	(9,785)	(9,697)
Treasury stock purchases	0	(4,389)
Net cash used in financing activities	(16,466)	(14,593)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	996	(11,519)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	111,681	101,121
CASH AND CASH EQUIVALENTS, END OF PERIOD	112,677	89,602
SUPPLEMENTAL DISCLOSURES OF CASH PAYMENTS MADE FOR:
Interest	2,963	1,698
Income taxes	1,475	4,132
NONCASH SUPPLEMENTAL DISCLOSURES:
Investment in Wakefern and increase in notes payable to Wakefern	351	93
Capital expenditures included in accounts payable and accrued expenses	$ 3,779	$ 5,221

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BASIS OF PRESENTATION and ACCOUNTING POLICIES

9 Months Ended

Apr. 24, 2021

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 April 24, 2021 and the consolidated statements of operations, comprehensive income and cash flows for the 13 and 39 weeks ended April 24, 2021 and April 25, 2020 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 25, 2020 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 24, 2021 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								39 Weeks Ended
	April 24, 2021				April 25, 2020				April 24, 2021				April 25, 2020
	Amount		%		Amount		%		Amount		%		Amount		%
Center Store (1)	$	286,882	59.6	%	$	291,257	63.5	%	$	904,651	60.6	%	$	812,089	62.3	%
Fresh (2)	176,013		36.6		148,489		32.4		533,622		35.7		434,669		33.4
Pharmacy	16,303		3.4		17,252		3.8		49,406		3.3		52,486		4.0
Other (3)	1,895		0.4		1,294		0.3		6,368		0.4		3,872		0.3
Total Sales	$	481,093	100.0	%	$	458,292	100.0	%	$	1,494,047	100.0	%	$	1,303,116	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, gift card and lottery commissions and wholesale sales.

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MERCHANDISE INVENTORIES

9 Months Ended

Apr. 24, 2021

Inventory Disclosure [Abstract]

MERCHANDISE INVENTORIES

MERCHANDISE INVENTORIES

    At both April 24, 2021 and July 25, 2020, approximately 63% 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 $15,101 higher than reported at both April 24, 2021 and July 25, 2020.

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NET INCOME PER SHARE

9 Months Ended

Apr. 24, 2021

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

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021				April 24, 2021
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	1,943	$	551	$	7,914	$	2,242
Conversion of Class B to Class A shares	551		—		2,242		—
Net income allocated, diluted	$	2,494	$	551	$	10,156	$	2,242
Denominator:
Weighted average shares outstanding, basic	9,850		4,294		9,850		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,144		4,294		14,144		4,294
	13 Weeks Ended				39 Weeks Ended
	April 25, 2020				April 25, 2020
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	8,431	$	2,398	$	11,892	$	3,390
Conversion of Class B to Class A shares	2,398		—		3,390		—
Net income allocated, diluted	$	10,829	$	2,398	$	15,282	$	3,390
Denominator:
Weighted average shares outstanding, basic	9,789		4,294		9,775		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,083		4,294		14,069		4,294

    Outstanding stock options to purchase Class A shares of 156 and 159 were excluded from the calculation of diluted net income per share at April 24, 2021 and April 25, 2020, respectively, as a result of their anti-dilutive effect. In addition, 398 and 397 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 April 24, 2021 and April 25, 2020, respectively, due to their anti-dilutive effect.

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PENSION PLANS

9 Months Ended

Apr. 24, 2021

Compensation Related Costs [Abstract]

PENSION PLANS

PENSION PLANS

Net periodic pension cost for the three defined benefit pension plans sponsored in fiscal 2021 and the four defined benefit pension plans sponsored in fiscal 2020 includes the following components:

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Service cost	$	54	$	51	$	162	$	152
Interest cost on projected benefit obligations	422		512		1,266		1,643
Expected return on plan assets	(483)		(733)		(1,449)		(2,061)
Loss on settlement	—		116		—		1,362
Amortization of net losses	147		144		441		435
Net periodic pension cost	$	140	$	90	$	420	$	1,531

On December 23, 2019, the Company terminated the Village Super Market, Inc. Retail Clerks Employees’ Retirement Plan. All participants of the plan were former employees of a store previously closed in 1994. An annuity contract totaling $1,302 was purchased with an insurance company for all participants who did not elect a lump sum distribution. Additionally, lump sum distributions related to the termination totaled $451. The plan had sufficient assets to satisfy all termination transaction obligations, and no benefit obligation or plan assets related to the Village Super Market, Inc. Retail Clerks Employees’ Retirement Plan remained as of the termination date. As a result of this termination, the Company recognized a non-cash pre-tax settlement charge totaling $669 during the 13 weeks ended January 25, 2020. This settlement charge represents the plan’s remaining unrecognized losses within accumulated other comprehensive loss as of the termination date.

Additionally, the Company recognized a settlement loss of $116 and $693 in the 13 and 39 weeks ended April 25, 2020, respectively, for a plan where benefits paid exceeded the sum of the service cost and interest cost components of net periodic pension cost. Assumptions used in the related remeasurement include a discount rate of 2.85% and long term expected rate of return on plan assets of 5.00%.

    As of April 24, 2021, the Company has not made any contributions to its pension plans in fiscal 2021.  The Company expects contributions to its defined benefit pension plans to be immaterial in fiscal 2021.

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RELATED PARTY INFORMATION

9 Months Ended

Apr. 24, 2021

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 25, 2020.  

    Included in cash and cash equivalents at April 24, 2021 and July 25, 2020 are $82,651 and $76,259, respectively, of demand deposits invested at Wakefern at overnight money market rates.

    There have been no other significant changes in the Company’s relationships or nature of transactions with related parties during the 39 weeks ended April 24, 2021.

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COMMITMENTS and CONTINGENCIES	9 Months Ended
	Apr. 24, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS and CONTINGENCIES	COMMITMENTS and CONTINGENCIES    The Company is involved in other 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.

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DEBT

9 Months Ended

Apr. 24, 2021

Debt Disclosure [Abstract]

DEBT

DEBT

Long-term debt consists of:

	April 24, 2021		July 25, 2020
Unsecured revolving line of credit	$	—	$	50,000
Secured term loan	47,852		—
Unsecured term loan	22,003		24,694
New Market Tax Credit Financing	5,735		5,921
Total debt, excluding obligations under leases	75,590		80,615
Less current portion	6,976		6,421
Total long-term debt, excluding obligations under leases	$	68,614	$	74,194

Credit Facility

On May 6, 2020, Village entered into a credit agreement (the “Credit Facility”) with Wells Fargo National Bank, National Association (“Wells Fargo”) that supersedes in its entirety the prior credit agreement with Wells Fargo dated November 9, 2017. The principal purpose of the Credit Facility is to finance general corporate and working capital requirements and Village’s acquisition of certain Fairway assets. Among other things, the Credit Facility provides for a maximum loan amount of $150,500 as further set forth below:

•An unsecured revolving line of credit providing a maximum amount available for borrowing of $125,000. Indebtedness under this agreement bears interest at the applicable LIBOR rate plus 1.10% and expires on May 6, 2025.

•An unsecured term loan with a maximum loan amount of $25,500. On May 12, 2020, Village executed a $25,500 term note, repayable in equal monthly installments based on a seven-year amortization schedule through May 4, 2027 and bearing interest at the applicable LIBOR rate plus 1.35%. Additionally, Village executed an interest rate swap for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .41% per annum through May 4, 2027, resulting in a fixed effective interest rate of 1.76% on the term note.

•On September 1, 2020, Village converted $50,000 of its revolving line of credit to a secured converted term loan. The conversion reduced the maximum amount available for borrowing under the revolving line of credit from $125,000 to $75,000. The term loan bears interest at the applicable LIBOR rate plus 1.50% and is repayable in equal monthly installments based on a fifteen-year amortization schedule beginning on the conversion date. Additionally, Village previously executed a forward interest rate swap, effective on the conversion date, for a notional amount equal to the term loan amount that fixes the base LIBOR rate at .69% per annum for 15 years, resulting in a fixed effective interest rate of 2.19% on the converted 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.

The Credit Facility also provides for up to $25,000 of letters of credit ($7,336 outstanding at April 24, 2021), 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 April 24, 2021.

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

9 Months Ended

Apr. 24, 2021

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 LIBOR 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.

In 2020, the Company executed two interest rate swaps with an aggregate notional value of $75,500 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 LIBOR. The swaps replaced the applicable LIBOR 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 loss and subsequently reclassified into interest expense in the same period during which the hedged transaction affects earnings. Amounts reported in Accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the variable-rate loans. The Company reclassified $86 and $234 during the 13 and 39 weeks ended April 24, 2021, respectively, from Accumulated other comprehensive loss to Interest expense.

The notional value of the interest rate swaps were $70,216 as of April 24, 2021. The fair value of interest rate swaps recorded in other assets is $2,022 as of April 24, 2021.

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BUSINESS ACQUISITION

9 Months Ended

Apr. 24, 2021

Business Combinations [Abstract]

BUSINESS ACQUISITION

BUSINESS ACQUISITIONOn May 14, 2020, Village completed its acquisition of certain assets, including five supermarkets averaging 52,000 sq. ft. (30,000 selling sq. ft.), a production distribution center (the “PDC”) and the intellectual property of Fairway Group Holdings Corp. and certain of its subsidiaries (“Fairway”), including the names “Fairway” and “Fairway Markets.” Four of the supermarkets are in Manhattan, specifically the Upper West Side, Upper East Side, Kips Bay and Chelsea locations, and a fifth store is located in Pelham, NY. The acquisition was effectuated pursuant to the Asset Purchase Agreement (the "APA"), entered into on January 20, 2020, revised on March 25, 2020 and approved by the United States Bankruptcy Court for the Southern District of New York through a Sale Order entered on April 20, 2020. Village paid $73,622 for the Fairway assets, net

of cash acquired, and assumed certain liabilities, consisting primarily of those arising from acquired leases. Additionally, at the time of closing Village received a $2,035 credit arising from the breakup of Village’s initial “stalking horse” bid under the January 20, 2020 Asset Purchase Agreement. The credit was recognized as a reduction in operating and administrative expense in the fourth quarter of fiscal 2020. The Fairway acquisition expands our presence in New York City under an iconic city brand and provides Village the ability to expand centralized food production to support stores under all of our banners.

Village accounted for this transaction as a business combination in accordance with the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. In connection with this acquisition, the Company recorded $11,540 of goodwill attributable to the assembled workforce and cost synergies. The goodwill related to this acquisition is deductible for tax purposes. Additionally, the Company recorded a $14,200 indefinite-lived intangible asset related to the trade name. The fair value of the intangible asset was determined based on the discounted cash flow model using the relief from royalty method. The fair value of the property, equipment and fixtures were determined based on the indirect cost approach in which current costs that were not new were adjusted for all forms of depreciation. The Company also evaluated the fair value of the leases assumed in the acquisition, which evaluated comparable rents in the areas of the locations. Leases were determined to be at market apart from one location. For this location, the Company recorded a favorable lease of $4,360 within operating lease assets. The favorable lease is being amortized over the remaining duration of the lease. Transaction costs were expensed as incurred. The final allocation of the purchase price consideration to the assets acquired and the liabilities assumed has been completed.

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BASIS OF PRESENTATION and ACCOUNTING POLICIES (Tables)

9 Months Ended

Apr. 24, 2021

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								39 Weeks Ended
	April 24, 2021				April 25, 2020				April 24, 2021				April 25, 2020
	Amount		%		Amount		%		Amount		%		Amount		%
Center Store (1)	$	286,882	59.6	%	$	291,257	63.5	%	$	904,651	60.6	%	$	812,089	62.3	%
Fresh (2)	176,013		36.6		148,489		32.4		533,622		35.7		434,669		33.4
Pharmacy	16,303		3.4		17,252		3.8		49,406		3.3		52,486		4.0
Other (3)	1,895		0.4		1,294		0.3		6,368		0.4		3,872		0.3
Total Sales	$	481,093	100.0	%	$	458,292	100.0	%	$	1,494,047	100.0	%	$	1,303,116	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, gift card and lottery commissions and wholesale sales.

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NET INCOME PER SHARE (Tables)

9 Months Ended

Apr. 24, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021				April 24, 2021
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	1,943	$	551	$	7,914	$	2,242
Conversion of Class B to Class A shares	551		—		2,242		—
Net income allocated, diluted	$	2,494	$	551	$	10,156	$	2,242
Denominator:
Weighted average shares outstanding, basic	9,850		4,294		9,850		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,144		4,294		14,144		4,294
	13 Weeks Ended				39 Weeks Ended
	April 25, 2020				April 25, 2020
	Class A		Class B		Class A		Class B
Numerator:
Net income allocated, basic	$	8,431	$	2,398	$	11,892	$	3,390
Conversion of Class B to Class A shares	2,398		—		3,390		—
Net income allocated, diluted	$	10,829	$	2,398	$	15,282	$	3,390
Denominator:
Weighted average shares outstanding, basic	9,789		4,294		9,775		4,294
Conversion of Class B to Class A shares	4,294		—		4,294		—
Weighted average shares outstanding, diluted	14,083		4,294		14,069		4,294

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PENSION PLANS (Tables)

9 Months Ended

Apr. 24, 2021

Compensation Related Costs [Abstract]

Schedule of Net Benefit Costs

Net periodic pension cost for the three defined benefit pension plans sponsored in fiscal 2021 and the four defined benefit pension plans sponsored in fiscal 2020 includes the following components:

	13 Weeks Ended				39 Weeks Ended
	April 24, 2021		April 25, 2020		April 24, 2021		April 25, 2020
Service cost	$	54	$	51	$	162	$	152
Interest cost on projected benefit obligations	422		512		1,266		1,643
Expected return on plan assets	(483)		(733)		(1,449)		(2,061)
Loss on settlement	—		116		—		1,362
Amortization of net losses	147		144		441		435
Net periodic pension cost	$	140	$	90	$	420	$	1,531

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Debt (Tables)

9 Months Ended

Apr. 24, 2021

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of:

	April 24, 2021		July 25, 2020
Unsecured revolving line of credit	$	—	$	50,000
Secured term loan	47,852		—
Unsecured term loan	22,003		24,694
New Market Tax Credit Financing	5,735		5,921
Total debt, excluding obligations under leases	75,590		80,615
Less current portion	6,976		6,421
Total long-term debt, excluding obligations under leases	$	68,614	$	74,194

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BASIS OF PRESENTATION and ACCOUNTING POLICIES - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Revenue from External Customer [Line Items]
Sales	$ 481,093	$ 458,292	$ 1,494,047	$ 1,303,116
Percentage of total sales	100.00%	100.00%	100.00%	100.00%
Center Store
Revenue from External Customer [Line Items]
Sales	$ 286,882	$ 291,257	$ 904,651	$ 812,089
Percentage of total sales	59.60%	63.50%	60.60%	62.30%
Fresh
Revenue from External Customer [Line Items]
Sales	$ 176,013	$ 148,489	$ 533,622	$ 434,669
Percentage of total sales	36.60%	32.40%	35.70%	33.40%
Pharmacy
Revenue from External Customer [Line Items]
Sales	$ 16,303	$ 17,252	$ 49,406	$ 52,486
Percentage of total sales	3.40%	3.80%	3.30%	4.00%
Other
Revenue from External Customer [Line Items]
Sales	$ 1,895	$ 1,294	$ 6,368	$ 3,872
Percentage of total sales	0.40%	0.30%	0.40%	0.30%

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MERCHANDISE INVENTORIES (Details) - USD ($) $ in Thousands	Apr. 24, 2021	Jul. 25, 2020
Inventory Disclosure [Abstract]
Percentage of LIFO inventory	63.00%	63.00%
Inventory, LIFO reserve	$ 15,101	$ 15,101

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NET INCOME PER SHARE - Additional Information (Details) shares in Thousands	9 Months Ended
	Apr. 24, 2021 class_common_stock shares	Apr. 25, 2020 shares
Earnings Per Share [Abstract]
Number of common stock classes | class_common_stock	2
Common stock cash dividends, percent Class A is entitled greater than Class B	54.00%
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class A shares excluded from computation of earnings per share	398	397
Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Class A shares excluded from computation of earnings per share	156	159

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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		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Common Class A
Numerator:
Net income allocated, basic	$ 1,943	$ 8,431	$ 7,914	$ 11,892
Conversion of Class B to Class A shares	551	2,398	2,242	3,390
Net income allocated, diluted	$ 2,494	$ 10,829	$ 10,156	$ 15,282
Denominator:
Weighted average shares outstanding, basic (in shares)	9,850	9,789	9,850	9,775
Conversion of Class B to Class A shares (in shares)	4,294	4,294	4,294	4,294
Weighted average shares outstanding, diluted (in shares)	14,144	14,083	14,144	14,069
Common Class B
Numerator:
Net income allocated, basic	$ 551	$ 2,398	$ 2,242	$ 3,390
Conversion of Class B to Class A shares	0	0	0	0
Net income allocated, diluted	$ 551	$ 2,398	$ 2,242	$ 3,390
Denominator:
Weighted average shares outstanding, basic (in shares)	4,294	4,294	4,294	4,294
Conversion of Class B to Class A shares (in shares)	0	0	0	0
Weighted average shares outstanding, diluted (in shares)	4,294	4,294	4,294	4,294

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PENSION PLANS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 24, 2021	Apr. 25, 2020	Apr. 24, 2021	Apr. 25, 2020
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 54	$ 51	$ 162	$ 152
Interest cost on projected benefit obligations	422	512	1,266	1,643
Expected return on plan assets	(483)	(733)	(1,449)	(2,061)
Loss on settlement	0	116	0	1,362
Amortization of net losses	147	144	441	435
Net periodic pension cost	$ 140	$ 90	$ 420	$ 1,531

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PENSION PLANS - Additional Information (Details)		3 Months Ended			9 Months Ended
	Dec. 23, 2019 USD ($)	Apr. 24, 2021 USD ($)	Apr. 25, 2020 USD ($)	Jan. 25, 2020 USD ($)	Apr. 24, 2021 USD ($) defined_benefit_pension_plan	Apr. 25, 2020 USD ($) defined_benefit_pension_plan
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit pension plans | defined_benefit_pension_plan					3	4
Loss on settlement		$ 0	$ 116,000		$ 0	$ 1,362,000
Discount rate			2.85%
Long term expected rate of return on plan assets			5.00%
Employer contributions in current fiscal year					$ 0
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Loss on settlement			$ 116,000			$ 693,000
Village Super Market, Inc. Retail Clerks Employees’ Retirement Plan | Supplemental Employee Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Annuity contract	$ 1,302,000
Lump sum distributions related to the termination of retirement plan	451,000
Benefit obligation	$ 0
Non-cash pre-tax settlement charge				$ 669,000

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RELATED PARTY INFORMATION (Details) - USD ($) $ in Thousands	Apr. 24, 2021	Jul. 25, 2020
Investee
Related Party Transaction [Line Items]
Demand deposits at Wakefern	$ 82,651	$ 76,259

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DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Apr. 24, 2021	Jul. 25, 2020
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	$ 75,590	$ 80,615
Less current portion	6,976	6,421
Total long-term debt, excluding obligations under leases	68,614	74,194
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	0	50,000
Line of Credit | Secured Debt
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	47,852	0
Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	22,003	24,694
Notes Payable to Banks
Debt Instrument [Line Items]
Total debt, excluding obligations under leases	$ 5,735	$ 5,921

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DEBT - Additional Information (Details)					84 Months Ended
	Sep. 01, 2020 USD ($) store	May 12, 2020	May 06, 2020 USD ($)	Dec. 29, 2017 USD ($)	Dec. 29, 2024 USD ($)	Apr. 24, 2021 USD ($)	Jul. 25, 2020 USD ($)
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		$ 68,614,000	$ 74,194,000
Interest rate, stated percentage				1.00%
Scenario, Forecast
Debt Instrument [Line Items]
Benefit over recapture period					$ 1,728,000
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 150,500,000
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000,000		125,000,000
Revolving credit conversion to secured term loan	$ 50,000,000
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Maximum borrowing capacity			25,500,000
Debt term		7 years
Effective interest rate		1.76%
Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 25,000,000
Debt outstanding						$ 7,336,000
Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt
Debt Instrument [Line Items]
Debt term	15 years
Effective interest rate	2.19%
Number of stores used as collateral for debt | store	3
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Debt, basis spread on variable rate			1.10%
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Line of Credit | Medium-term Notes
Debt Instrument [Line Items]
Debt, basis spread on variable rate		1.35%
Derivative, fixed rate		0.41%
London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt
Debt Instrument [Line Items]
Debt, basis spread on variable rate	1.50%
Interest Rate Swap | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt
Debt Instrument [Line Items]
Derivative term	15 years
Interest Rate Swap | London Interbank Offered Rate (LIBOR) | Credit Agreement with Wells Fargo National Bank, National Association | Secured Debt
Debt Instrument [Line Items]
Derivative, fixed rate	0.69%

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DERIVATIVES AND HEDGING ACTIVITIES - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 24, 2021 USD ($)	Apr. 24, 2021 USD ($)	Jul. 25, 2020 USD ($) derivative_instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair of interest rate swaps recorded in other liabilities	$ 2,022	$ 2,022
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of derivative instruments held | derivative_instrument			2
Derivative notional amount	70,216	70,216	$ 75,500
Interest Rate Swap | Interest Expense [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Reclassification of accumulated other comprehensive loss to interest expense	$ 86	$ 234

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BUSINESS ACQUISITION (Details) $ in Thousands	May 14, 2020 USD ($) ft² store	Apr. 24, 2021 USD ($)	Jul. 25, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill acquired in acquisition		$ 24,190	$ 24,190
Fairway Markets
Business Acquisition [Line Items]
Number of stores acquired | store	5
Average area of each supermarket acquired (in sq ft) | ft²	52,000
Average selling area of each supermarket acquired (in sq ft) | ft²	30,000
Payment for acquisition, net of cash acquired	$ 73,622
Acquisition credit	2,035
Goodwill acquired in acquisition	11,540
Trade name intangible asset	14,200
Fairway Markets | Off-Market Favorable Lease
Business Acquisition [Line Items]
Finite-lived intangible asset acquired	$ 4,360

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Label	Element	Value
Accounting Standards Update [Extensible List]	us-gaap_AccountingStandardsUpdateExtensibleList	us-gaap:AccountingStandardsUpdate201602Member