GRAND RAPIDS, Mich. — Spartan Stores’ new Valu Land discount concept will add three to five new stores this fiscal year, and officials see the potential for the banner as an organic growth vehicle outside of Michigan.
As reported in SN in March, Spartan began been testing the limited-assortment concept late last year at converted Glen’s Markets and Family Fare sites. It opened its first ground-up Valu Land site earlier this month in Lansing, Mich.
“While we are still very early in the development and testing of this format, we are excited about the potential organic growth opportunity it could provide in certain existing markets and locations outside the state of Michigan,” Dennis Eidson, Spartan’s chief executive officer, said Wednesday. "Additionally, we hope to leverage our learnings from this format to benefit our distribution customers.”
Eidson’s remarks came as Spartan reviewed financial results for the fourth quarter and fiscal year that ended March 31. Quarterly consolidated sales of $614.8 million increased 7.6% due mainly to a 13th week in the quarter and higher gasoline prices. Comparable store sales fell by 3%. Net earnings of $10.5 million increased 37%; when adjusted for a tax charge and an extra week, earnings would have increased by 16.7% to $9.1 million, due mainly to cost controls.