Spartan announces plans for acquired Felpausch stores
GRAND RAPIDS, Mich. Spartan Stores is focusing on integrating its newly acquired Felpausch grocery stores into its network during the second half of its 2008 fiscal year.
Spartan expects the Hastings-based, 20-store Felpausch acquisition in June to add about $85 million in sales during the fiscal year. About $4 million to $5 million will be spent, with five store remodelings during the next two quarters.
During last week’s conference call, which discussed the company’s second quarter earnings, officials told analysts that they plan to spend $1.5 million to $2 million for merchandise changes, store remodeling and employee training in its third and fourth quarters.
Spartan, known as the country’s 10th-largest grocery distributor, with close to 400 independent grocery stores as customers in Michigan, Indiana and Ohio, also owns 88 grocery stores in Michigan and 14 drug stores in Ohio, including Family Fare Supermarkets, D&W Fresh Markets, Glen’s Markets, Felpausch Food Centers and The Pharm.
Spartan plans to renovate the stores and rename them either Family Fare or D&W, depending on market demographics.
Spartan reported that its net sales for the quarter reached a six-year high, with $627.1 million, or a 13.5 percent increase over the $552.6 million for the same time period last year.
Net earnings for the second quarter reached $9.1 million, or 42 cents per share, compared to $9.3 million, or 44 cents per share last year.