| Grand Rapids based Spartan Stores, Inc., has just announced that their Net Earnings for the first quarter of their fiscal year have reached a 6 year high. Spartan is currently operating in FY 2008. The first quarter ended June 23, 2007.
Spartan reports that compared to Q1 of FY 2007, consolidated net sales increased 5.4%, as a result of incremental fuel sales, increased customer count, and increased sales to existing customers. Operating earnings increased 87.4%, and net earnings increased 142.3%.
Despite the increases, profit margins declined from 19.6% to 19.3%. This was due primarily to lower margins on fuel and pharmacy sales.
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Spartan Stores owns and operates 88 supermarkets and 19 drugstores in Michigan and Ohio. Spartan stores include Felpausch Food Centers, Family Fare Supermarkets, D&W Fresh Markets, Glen's Markets, and The Pharm. As a leading food distributor, Spartan supplies more than 40,000 private label and national brand products to nearly 400 independent grocery stores. Spartan brands include Spartan, Full Care, Top Care, Aroma Street, ValuTime, and President's Choice.
Under the direction of corporate leadership and a Board of Directors, Spartan Stores will continue to foster innovation and support and promote growth of the company to ensure its success. (emphasis mine)
Spartan Stores began in 1917, as the Grand Rapids Wholesale Grocery Company. By 1918 they were operating as a cooperative, purchasing items in bulk so they could reduce prices and pass savings on to customers. This was the only way to protect the independent grocers from the large national chains that were moving in.
There's an interesting history of the company here, which gives the Spartan Stores history by the decade.
Spartan Stores have demonstrated a strong community interest, and have poured millions of dollars into organizations such as the United Way and Salvation Army, and programs such as Special Olympics and Food For Families. Spartan also offers fund-raising opportunities for non-profit organizations.
Spartan is expecting to continue its strong growth, partially due to the departure of Farmer Jacks: "As a result of the market exit of certain Farmer Jack stores, a number of our distribution customers recently expanded their store bases in the Detroit area, and we expect to begin ramping-up incremental distribution business to these customers during the second and third quarters of our fiscal year.
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" In the distribution segment, we expect the additional business from our expanded Martin's Super Market relationship and from incremental sales due to the closure of the Farmer Jack locations to exceed $120 million in this fiscal year. We should begin to see the sales benefits from the Farmer Jack closures in the second quarter, and the full impact midway through the third quarter.
The reason I like this success story is that the company is headquartered in Michigan, and it operates multiple retail locations within the state. It started here 90 years ago, and it's going strong. A true Michigan success story.
And I admit, I like being able to say that Spartan Stores have nearly 40 locations in the Detroit area, and collectively, they're doing well. |
