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This story was originally published on Supermarketnews.
The fourth quarter allowed SpartanNash to realize the financial benefits of its two acquisitions in late 2024, and the multi-channel company said it has its eye on further growth.
The biggest news for grocers?
The Byron Center, Mich.-based grocer announced two acquisitions about two weeks apart in October. SpartanNash first acquired 49-unit supermarket chain Fresh Encounter, then purchased the three stores that form Markham Enterprises' convenience-store network.
During the earnings call on Wednesday, SpartanNash CEO Tony Sarsam mentioned that fourth-quarter traffic was soft for the grocer, but stronger-than-expected performance from the acquisitions led to a 7.7% year-over-year increase in retail net sales. Overall, net sales rose by 0.7%.
It seems SpartanNash isn't finished with mergers and acquisitions. Sarsam stated that the goal is to capture growth in the retail sector through both organic and inorganic initiatives, using a three-pronged approach: expanding SpartanNash's capital deployment for store remodels into select conventional and upmarket stores; focusing on the attractive convenience-store sector; and leveraging the retailer’s expertise in Hispanic food markets by growing its ethnic store footprint in 2025.
Sarsam is also focused on capturing more market share through its wholesale and retail segments.
Fourth quarter by the numbers
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Comparable sales dropped 0.7% versus a year ago
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SpartanNash’s private-label brands reached 27% penetration
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For the wholesale segment, net sales for the fourth quarter decreased 2.1% year over year to $1.56 billion
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Adjusted EBITDA rose 9%: $58.6 million compared to $53.6 million in Q4 2023
Full fiscal year by the numbers
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Comparable sales dropped 1.7%
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Adjusted EBITDA grew year over year—$258.5 million compared to $257.4 million—and it was the third consecutive year of record adjusted EBITDA.
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Net sales decreased 1.9% to $9.55 billion
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Retail segment net sales increased 1.1% year over year to $2.84 billion
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Wholesale segment net sales decreased 3% to $6.71 billion
Proud to serve
SpartanNash’s wholesale business might have been down for the fiscal year but the grocer continues to do well serving the military, where sales have grown for 12 consecutive quarters. Sarsam sees the military as an area of additional organic growth.
Adding spice to ethnic growth
SpartanNash has good reason to believe it can grow in the ethnic grocery segment. The company has operated three stores in Nebraska catering to Hispanic consumers, and according to Sarsam, they have terrific margins. SpartanNash is looking at other cities where it can expand its ethnic footprint, whether it be through acquisitions or new store construction.