The second quarter of the financial year closed on September 24, 2016. Our combined year-to-date sales are 4% better than our projected budget and both stores are showing growth compared to last year. For Q2, the Arcata store is seeing an increase in sales, year over year, of $129,570 or 2.5% better than last year, and the Eureka store is up $101.506 or 3.0% over last year—all this while keeping purchases and expenses in line. We have had good customer counts and strong basket sizes in each store so far this year and the sales are showing it.
The year-end audit for fiscal year 2016 has been completed. At their November 29 meeting, the board of directors accepted the audit findings. The audit was clean, with a few suggestions for improved systems and accountability.
We have started working on our budget for fiscal year 2018. Using the principles of Open Book Management, the process involves each department preparing their own budget to add to the overall budget. While this can be time consuming for all involved, we end up with a much more accurate budget. We will continue working toward a final document to present to the board of directors for approval in February of 2017.
Even with new competition in McKinleyville—Eureka Natural Foods opened in August—the first two quarters have been good for the Co-op. We look forward to exceeding expectations in the next quarter as well!