SpartanNash's Q4 2024 report shows 0.7% net sales growth to $2.26B, driven by store acquisitions and private brand expansion (27%). With c-store remodeling and 2025 sales projections of $9.8B-$10.0B, the company is poised for further growth.

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Q4 2024 Performance Key Highlights Future Outlook

SpartanNash demonstrated resilience and strategic growth during the fourth quarter of 2024, recording a 0.7% increase in net sales to $2.26 billion. The Retail segment saw a robust 7.7% growth in net sales, reaching $697.1 million, while the Wholesale segment faced a 2.1% decline to $1.56 billion due to lower case volumes.

 

Q4 2024 Performance

Net Sales

  • Total Q4 net sales: $2.26 billion, a 0.7% increase year-over-year.
  • Retail segment growth: Driven by acquisitions, despite a 0.7% dip in comparable store sales.
  • Wholesale segment decline: Affected by reduced volumes in independent retailers and national accounts.

Brand Assortment

  • SpartanNash expanded its brand assortment through acquisitions, notably Metcalfe’s Market, Fresh Encounter, and Markham Enterprises.
  • The company is enhancing its private label offerings, which now represent over 27% of total sales, aligning with the industry shift toward private brands.

Strategic Partnerships and Acquisitions

  • The acquisition of Metcalfe’s Market, Fresh Encounter, and Markham Enterprises strengthened SpartanNash’s retail footprint.
  • SpartanNash is focusing on expanding its convenience store (c-store) operations, following the successful acquisition of Markham Enterprises.
  • CEO Tony Sarsam confirmed that further acquisitions are expected in 2025 as part of the company’s long-term strategy.

Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) Performance

  • Compared to Q4 2023, overall net sales showed marginal growth of 0.7%.
  • The Retail segment’s YoY increase of 7.7% was driven by newly acquired stores, counterbalancing declining consumer demand.

Store Traffic

  • Positive store traffic trends in Michigan, the company’s largest market, with comparable store sales growth in the last two quarters.
  • Stronger gross margins and operational efficiencies contributed to overall financial improvement.

Community Insight

The company is focusing on remodeling select stores to appeal to diverse shopper demographics, including the growing Hispanic grocery sector.

 

Key Highlights 

Private Brand Performance

  • SpartanNash’s private brand penetration reached over 27% in Q4, reinforcing its commitment to growing proprietary offerings.
  • According to Grocery Doppio, consumer preference for private brands has grown due to healthier options, with 70% of shoppers trying private labels and 50% planning to continue in 2024.
  • Pricing (85%) and promotions (48%) are the primary factors driving private label adoption, making them a key component in customer loyalty and store branding.
  • SpartanNash’s private brands align with these trends by offering affordable, high-quality alternatives to national brands, strengthening the company’s competitive position.

Same-Store Sales

SpartanNash reported positive store traffic trends in Michigan, its largest market, with comparable store sales growth for the past two quarters. Improved merchandising strategies and private brand expansion contributed to stronger margins and sustained customer retention.

Remodeling Stores to Expand C-Store Operations

SpartanNash is remodeling select stores to transition into modernized convenience store formats, aligning with the increasing demand for one-stop shopping convenience. This strategy enhances consumer accessibility while catering to shifting shopping behaviors that favor quick and efficient retail experiences. CEO Tony Sarsam emphasized the importance of c-store expansion, stating: “The base idea around convenience and being able to offer the one-stop for fuel and picking up snacks or whatever — that’s a trend that we think is going to continue.” The Markham Enterprises acquisition provides SpartanNash with a strong foundation to accelerate its c-store transformation in 2025, ensuring alignment with evolving consumer preferences.

 

Future Outlook for 2025

Looking ahead, SpartanNash anticipates net sales growth in fiscal 2025 to range between $9.8 billion and $10.0 billion. The company’s strategy includes further acquisitions in the grocery and c-store sectors, expanding private label penetration to strengthen customer retention, and store remodeling initiatives to enhance operational efficiency and customer experience.