Spartan Stores Plans Private Label Expansion

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October 19, 2010

Spartan Stores plans to introduce more than 200 new private label products under its new Fresh Selection brand before the end of the year.

'We plan to further enhance our consumer value offering by introducing more than 200 new private brand products during the second half of the fiscal year with approximately one half in center store and one half in fresh product categories…,” said CEO Dennis Eidson while reporting second quarter results. He noted that the chain “will work even more aggressively to improve our overall retail sales performance.”

Despite a revenue slip, Spartan Stores’ second quarter profits rose 7.7 percent to $11.2 million, for the quarter ending Sept. 11, compared with $10.4 million last year. Revenue declined 1.3 percent to $602 million, from last year's $610 million. Meanwhile, same-store sales are down nearly 5 percent over the same period last year.

“During the remainder of the fiscal year, we expect retail comparable store sales (excluding fuel centers) to improve relative to the second -quarter results, with a modest improvement in the third quarter,” Eidson said, adding that third quarter profits and fiscal 2011's full-year performance is expected to "approximate or slightly exceed fiscal 2010’s."

Grand Rapids, Mich.-based Spartan Stores, owns and operates 96 supermarkets and drugstores in Michigan and Ohio under the D&W Fresh Markets, Family Fare Supermarkets, Felpausch Food Centers, Glen’s Markets and VG's Food and Pharmacy banners.

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