SpartanNash cuts prices for 6,000 products after poor second quarter

SpartanNash is transforming the shopping experience and betting on future growth after a disappointing second-quarter earnings call on Thursday.

Net sales at the Byron Center, Michigan-based grocer fell 3.5% year-over-year to $2.23 billion, reflecting lower sales at both wholesale and retail stores.

Related: SpartanNash honors independent grocers

In the Wholesale segment, revenues decreased 4.8% year-over-year to $1.55 billion, and in the Retail segment, net sales decreased 0.4% and comparable sales were 2.5% lower compared to the second quarter of 2023.

Gross profit increased slightly year-over-year, coming in at just over $353 million compared to $352.3 million a year earlier.

Related: SpartanNash prepares to close a distribution center in Maryland

“We are pleased with the progress of our investments in margin-enhancing programs and expect to be profitable by year-end,” said Tony Sarsam, president and CEO of SpartanNash. “Building on this progress, we are piloting a customer value proposition initiative based on extensive customer data and insights aimed at improving freshness, value and convenience.”

“As part of this store modernization program, we are reducing prices on 6,000 products to provide added value to our current customers.”

SpartanNash celebrated the grand reopening of its Family Fare store in Holland, Michigan, on August 6. The grocer describes it as a modernized shopping destination that offers a larger selection of fresh meals and convenience-focused grocery selections.

SpartanNash maintains its fiscal year 2024 guidance of total net sales in the range of $9.5 billion to $9.7 billion and adjusted EBITDA in the range of $255 million to $270 million.

Halfway through the fiscal year, SpartanNash is reporting year-over-year losses in both the wholesale segment (net sales of $1.5 billion versus $1.6 billion) and the retail segment (just over $676 million versus approximately $679 million).

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