SpartanNash lowers prices on 6,000 products leading up to poor Q2 results

SpartanNash is changing the shopping experience as it looks to future growth following a disappointing second-quarter earnings call on Thursday.

Net sales for the Byron Center, Mich.-based grocer dropped 3.5% year over year to $2.23 billion, driven by lower volumes in both the wholesale and retail segments.

In the wholesale segment, sales were down 4.8% year over year at $1.55 billion, and on the retail side, net sales fell 0.4%, and comparable sales were 2.5% lower when compared to Q2 2023.

Gross profit was up slightly year over year — just over $353 million compared to $352.3 million a year ago.

“We are pleased with the progression of our investments in margin-enhancing programs and expect benefits by the end of the year,” said SpartanNash President and CEO Tony Sarsam. “Building on this progress, we are 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, we are lowering prices on 6,000 products to bring more value to our shoppers today.”

SpartanNash celebrated the grand reopening of its Family Fare store in Holland, Mich., on Aug. 6. The grocer is calling it a modernized shopping destination that features an enhanced array of fresh meal solutions and convenience-focused food selections.

Related:SpartanNash awards independent grocers

SpartanNash is holding firm on its fiscal year 2024 outlook that has total net sales falling in the $9.5 billion to $9.7 billion range and Adjusted EBITDA between $255 million and $270 million.

Halfway through the fiscal year, SpartanNash is showing year-over-year losses at both the wholesale segment ($1.5 billion in net sales vs. $1.6 billion) and the retail segment (just over $676 million vs. about $679 million).

Total net sales after 28 weeks came in at just over $5 billion. In 2023, net sales were just over $5.2 billion.