SpartanNash, Grand Rapids, Mich., said Wednesday it plans to roll out pricing and promotional initiatives to stores acquired in the November merger between Spartan Stores and Nash Finch Co. and to leverage its distribution competencies and platform to increase business with existing customers and drive new business.
According to Dennis Eidson, president and CEO, “We are focused on enhancing efficiencies across all segments of the company and are beginning to realize significant synergies in sourcing, distribution and back-office functions, and we continue to be confident in our ability to achieve, and likely exceed, our $52 million synergy target.”
He said SpartanNash has made “significant progress” in its merger integration efforts.
Net income rose 116.7% to $17.3 million for the second quarter ended July 12 and 78.2% to $29.6 million for the half, while sales increased 178% for the quarter to $1.8 billion (including $1.2 billion from Nash Finch) and 189.5% for the half to $4.1 billion (including $2.7 billion from Nash Finch).
Earnings for the quarter reflected favorable synergies from the merger as well as strong results in the company’s retail segment, Eidson noted.
Sales in the retail segment increased 42.4% to $539.8 million in the quarter, including $184.9 million from Nash Finch and reflecting results from new and remodeled stores — as well as a drop of $17.1 million due to store closures — while comparable store sales, excluding fuel, were flat.
Sales in the food distribution segment increased 182.4% to $767.9 million, including $501.4 million from Nash Finch; and sales in the military segment were $502.4 million, all of which came from Nash Finch.
According to Eidson, “While the quarter started off slowly due to the later timing of Easter, sales trends improved as the quarter progressed and the retail division achieved positive comparable store sales over the back half of the quarter, despite some softening in the consumer environment.”
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