SpartanNash Sales Increase 200 Percent
New stores and remodels are on the way for SpartanNash as the retailer saw a massive jump in its consolidated net sales for Q1 2014, its third consecutive quarter of positive comps. Sales increased to $2.3 billion from $780.3 million last year, a 199.1% increase. This huge jump is mostly due to the $1.5 billion in sales that were generated as a result of the November 2013 merger with Nash Finch Company, as well as a 2.5% increase in comparable store sales.
“We are pleased to deliver a quarter of very strong earnings growth,” said Dennis Eidson, SpartanNash’s President and CEO. “While we are early in the integration process, we are highly encouraged by our progress to-date on the integration plan and ability to achieve our $52 million synergy target. We look forward to continuing to leverage our combined retail, food distribution, and military operations to realize our long term growth opportunities.”
Net sales for the food distribution segment increased to $971.0 million from $336.7 million from the same period last year, a 188.4% increase, while net sales for retail increased to $678.6 million from $443.6 million, a 53% increase.
SpartanNash will continue investing in its three segments to remain competitive in a difficult retail environment. Plans for the second quarter include three major remodels and re-banners, along with four more major store remodels. Two additional stores are planned, with one scheduled to open in the third quarter, and the other to open in early 2015.
Looking ahead, store sales are expected to remain positive, but at a lower rate. SpartanNash anticipates seeing consolidated net sales around $7.9 billion to $8.04 billion.
It seems like it’s going to be a tough road ahead for many retailers. With SpartanNash’s recent success, I anticipate seeing how well this newly merged retailer will continue its performance in future quarters.
SpartanNash
