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SpartanNash to open its first micro-fulfillment center

Freestanding facility to fill Fast Lane online orders for West Michigan stores

Russell Redman

July 14, 2021

4 Min Read
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A grand opening for the SpartanNash Micro-Fulfillment Center, located in Caledonia, Mich., is slated for July 26.SpartanNash

Later this month, SpartanNash plans to launch its first micro-fulfillment center to fill orders for its Fast Lane online grocery service.

The grocery distributor said Wednesday that it plans to hold a grand opening for the 55,000-square-foot SpartanNash Micro-Fulfillment Center, located at 5199 68th St. SE in Caledonia, Mich., on July 26. Personal shoppers at the stand-alone facility will process Fast Lane pickup and delivery orders for 24 Ada Fresh Market, D&W Fresh Market, Family Fare and Forest Hills Foods stores across West Michigan, mainly in the Grand Rapids and Holland area.

Fast Lane has been a tremendous value-add for our store guests as the pandemic heightened the importance of safe, efficient grocery shopping, pickup and delivery,” SpartanNash President and CEO Tony Sarsam said in a statement. “The micro-fulfillment center is an exciting investment designed to further elevate the Fast Lane shopping experience as we strive to continuously improve our fulfillment speed and product availability.”

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The 55,000-square-foot, freestanding facility will process Fast Lane pickup and delivery orders for 24 SpartanNash corporate-run supermarkets in West Michigan.

The micro-fulfillment center (MFC) will carry 16,000 products and pick and pack over 1,000 Fast Lane orders daily when fully operational, more than doubling Fast Lane’s current order volume capacity, according to SpartanNash. Though employing manual rather than automated picking, the new facility stands to boost Fast Lane’s efficiency, expand the product assortment for Fast Lane customers, and free up space and stock in stores, the Grand Rapids-based company said.

Related:SpartanNash sweetens perks for Fast Lane subscribers

Once Fast Lane personal shoppers at the SpartanNash MFC pick and pack an order, it’s delivered directly to a store for curbside pickup or to the customer’s home. SpartanNash noted that its personal shoppers can communicate directly with customers via text messaging to accommodate their preferences in product selection, such as the ripeness of fruit or thickness of steak.

“We look forward to delivering an even higher level of quality and convenience to our store guests than they already enjoy with Fast Lane,” commented Tom Swanson, executive vice president and general manager of corporate retail at SpartanNash. “The technology and design of the MFC will allow us to be three to four times more efficient than fulfilling orders in-store. The new process increases our already great service effectiveness and gives our Fast Lane customers even more variety and assortment, all benefits we’re excited to introduce as a result of the MFC.”

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SpartanNash said the micro-fulfillment center will carry 16,000 products and pick and pack over 1,000 Fast Lane orders daily.

SpartanNash noted that the MFC’s grand opening date marks the four-year anniversary of Fast Lane’s debut. Since launching in 2017, the service has processed nearly 1 million orders.

Related:SpartanNash adds telehealth to pharmacy services menu

"There are no other MFCs currently being planned, but we are continuously evaluating our operations and footprint to optimize service to our customers," Adrienne Chance, vice president of communications at SpartanNash, said in an email.

Currently, Fast Lane service is available at 68 SpartanNash-owned and -operated supermarkets in Michigan, Minnesota, Nebraska, North Dakota, South Dakota and Wisconsin under the Family Fare, D&W Fresh Market, Family Fresh Market, VG’s Grocery, Dan’s Supermarket, Forest Hills Foods and Ada Fresh Market banners.

In reporting fiscal 2021 first-quarter results last month, Sarsam noted that online grocery service is part of the “stickiness” of the food-at-home trend that has continued as the COVID-19 pandemic has receded.

“We’re seeing people are still buying more online. So our e-commerce business is still doing very well and continues to grow, even in this period of time when the pandemic is waning,” Sarsam told analysts in a conference call on SpartanNash’s Q1 performance. “So some of the things we did to strengthen our business — the own brands, the improved offering in the fresh part of our business and some other elements like e-commerce — I think all those work together to help keep some of those habits I mentioned a little stickier than we might have forecasted.”

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Fast Lane service is available at 68 stores in six states under seven retail banners.

Also in June, SpartanNash expanded benefits for Fast Lane subscribers to incentivize online grocery shopping via its corporate-run supermarkets. SpartanNash stores previously provided Fast Lane subscriptions at $49 per year for free, unlimited curbside pickup, saving users a $4.95-per-order fee. Now under the program, subscribers will receive half-off the delivery fee, an extra $4.95-per-order savings. Other new perks include an exclusive “monthly bonus savings” that provides discounts across store departments.

Since Fast Lane’s launch in July 2017, which started with click-and-collect at selected Family Fare stores, SpartanNash has added a range of features to the online grocery service, including home delivery, same-day order fulfillment, GPS location technology and instant “clipping” of digital coupons.

*EDITOR'S NOTE: Article updated with more information about the SpartanNash Micro-Fulfillment Center's operations.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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