By Joel M. Albrizio, President
"Acquisitions Aside....Will Retailers And Wholesalers Grow?"
When you look at the once Nash Finch and further into the newly renamed SpartanNash we find an interesting setting. Nash Finch was and remains a grocery wholesaler with a solid group of retail supermarket customers.
While solid in its offerings,
Nash Finch lacked the retail abilities and the "Sizzle"....
required in todays rapidly changing wholesale grocery environment.
Spartan Stores on the other hand were all about the "Sizzle"!
With six or more well respected banners and branded "proprietary retail brands" of its own Spartan stores appeared to lack one item, lower cost of goods.
That said, with a transition beginning in 2013 and into 2014 the supermarket landscape witnessed the morphed hybrid company renamed SpartanNash.
With a quick first glance it appears not much may have been accomplished. Two entities known not as dominant but survivors came together to create what?
Perhaps a little more critical mass? Perhaps some lower pricing for Spartan Stores and obvious increased sales to Nash Finch?
A deeper more informed look would seem to reveal more than the typical coming together of two companies for little or no reason. Today in the retail supermarket world companies just don't grow retail sales with any consistantcy.
When was the last time we have seen real, year over year same store sales growth from any supermarket retailer across anything but a limited landscape?
Now the dust is settling. This almost "set to go" new version of "retailer/wholesaler" SpartanNash appears to have the new found abilities of organic sales growth for its supermarkets.
"Year over year same store sales growth Potential?"
Further SpartanNash appears poised to pass on this expertise across its verticles to the once Nash Finch wholesale grocery customers.
Imagine the private label brands available to almost any SpartanNash retailer.
VALU TIME is a quality label at the lowest possible retail price point.
World Classics is a line of premium affordable indulgent products.
Top Care is an alternative to health and beauty care national brands at more affordable price points.
Spartan Fresh promotes a private label approach "Branding" fresh with proprietary packaging expanding greater points of retailer differentiation.
Described as Shop Smart Buy Spartan this is the broader private label program, covering an across the board offering.
PAWS, SpartanNash's private label pet product program.
Our Family is "Branded" as the companies premier product line produced to define private label excellence.
Nash Brothers Trading Company brand is for the natural or organic consumer concerned with a reasonable price point.
me too! A branded intended toward a different retail twist to offer an engaging brand to a broader group of consumers.
Full Circle is the companies Eat Smart live Naturally brand. This is promoted as the all natural 100% organic alternative food choice.
b~leve is SpartanNash private label hair, skin and body care products.
So now we look closer and no longer wonder what or why this merger of these two respected companies took place.
With the ability to lower the cost of goods for their own retail locations SpartanNash became a low cost provider.
However with the Spartan Stores retail experience and expanded private label brand dominance SpartanNash seemingly will have the ability to grow retail sales organically and not solely through expensive retailer acquisitions.
Grocery Wholesalers for many years have leaned on retailer acquisitions along with the acquisitions of weaker grocery wholesaler competitors to grow.
SpartanNash, while the potential to acquire remains, now has the ability to offer proven programs and products to the retailer making any future investment or wholesale customer successful.
IDEAS, The Birthplace Of Retail Sales Growth....
Does SpartanNash Have What It Takes To Really Grow?
This new company, SpartanNash is at the intersection of skill, critical mass and opportunity. Who they are is evident, what they become remains up to them. The ingredients are all there to form sustained retail sales success.
This will be one company to keep an eye on if you enjoy retail sales and a company you must keep an eye on if you consider SpartanNash competition.
Thank-you for all of your support.