Wholesale Division Softness A Drag On SpartanNash Q2 Results
Second quarter sales at SpartanNash were down 3.5% as the company pinned the decrease on reduced volume from national accounts.
For the 12 weeks ended July 13, net sales were $2.23 billion, down from net sales of $2.31 billion in the comparable quarter the previous year. Wholesale segment net sales decreased 4.8% to $1.55 billion and retail segment net sales decreased 0.4% to $676.1 million, with comparable store sales down 2.5%. Net earnings in the quarter were $11.5 million, down from net earnings of $19.5 million in the previous year's second quarter.
Company officials said lower consumer demand trends in the retail segment offset incremental sales from the newly acquired Metcalfe's Market stores.
"The team's execution of our transformational initiatives has created a foundation for future growth while contributing to our margin gains year-to-date," said Tony Sarsam, president and CEO of SpartanNash. "We are pleased with the progression of our investments in margin-enhancing programs and expect benefits by the end of the year.”
To build on the progress mentioned by Sarsam, SpartanNash is piloting a Customer Value Proposition initiative that is informed by extensive shopper data and insights, aimed at enhancing freshness, value, and convenience. As part of this store modernization program, the company is lowering prices on 6,000 products to bring more value to its shoppers.
SpartanNash operates a food wholesale business that serves independent and chain grocers, national retail brands, e-commerce platforms, and U.S. military commissaries and exchanges. The company distributes products for every aisle in the grocery store, from fresh produce to household goods to its OwnBrands, which includes the Our Family portfolio of products.
On the retail side, SpartanNash operates 147 brick-and-mortar grocery stores, primarily under the banners of Family Fare, Martin's Super Markets, and D&W Fresh Market, in addition to dozens of pharmacies and fuel centers.
