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SpartanNash to buy Martin’s Super Markets

Food wholesaler adds to retail store base in Midwest

Russell Redman

November 20, 2018

4 Min Read
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In an expansion of its retail grocery business, food distributor SpartanNash Co. plans to acquire Indiana chain Martin’s Super Markets Inc.

Financial terms of the deal, announced Tuesday, weren’t disclosed. A wholesale customer of SpartanNash, Martin’s operates 21 stores, including 18 in northern Indiana and three in southwestern Michigan. The South Bend, Ind.-based retailer totaled more than $450 million in sales for its fiscal year ended July 29.

SpartanNash said the addition of Martin’s enlarges the eight-state Midwestern footprint of its corporate-owned retail stores. The Grand Rapids, Mich.-based company currently operates 139 supermarkets, mainly under the Family Fare Supermarkets, VG’s Food and Pharmacy, D&W Fresh Markets, Sun Mart and Family Fresh Market banners. Those locations also include 83 pharmacies and 29 fuel centers.

“We are excited to welcome Martin’s Super Markets to the SpartanNash family. Martin’s has been a valued independent retail customer since 2005, and we have the greatest respect for the Martin’s management team and its commitment to their associates, customers and the communities they serve,” David Staples, president and chief executive officer of SpartanNash, said in a statement. “We look forward to working with members of the team to continue to deliver the quality shopping experience and high level of customer service to Martin’s customers.”

Related:SpartanNash reports mixed results for third quarter

The transaction is expected to close early in SpartanNash’s fiscal 2019 first quarter, pending customary closing conditions, the company said.

“Our long-standing relationship has built the foundation for our future success and will enable us to grow our corporate retail business in Indiana and Michigan consistent with our long-term strategic growth strategy,” Staples added. “We also believe this investment in our corporate retail business will help us take full advantage of our opportunities to generate value for all SpartanNash stakeholders.”

Founded in 1947, Martin’s has stores in the areas of South Bend, Mishawaka, Granger, Elkhart, Goshen, Plymouth, Nappanee, Logansport and Warsaw, Ind., and in Niles, Stevensville and St. Joseph, Mich. The company also operates 17 in-store pharmacies, a pharmacy at the St. Joseph Health System in Mishawaka, a Martin’s Express convenience store in South Bend and a Side Door Café at Elkhart General Hospital.

Martins_Super_Market_store_produce_dept_organic.pngMartin's organic produce selection fits SpartanNash's focus on natural foods.

“We were seeking a partner we could trust with the family’s legacy of exceptional customer service, quality products and value. We found that partner in SpartanNash,” said Martin’s President Rob Bartels, grandson of the chain’s founders. “SpartanNash has been a valued and capable partner, and our partnership has grown and strengthened over time. We share similar values, a passion for the business and cultures based on excellent customer service, stewardship of our brands, and commitment to our communities and teams. We look forward to a robust and dynamic future for the Martin’s family.”

Related:SpartanNash appoints new leader for retail business

SpartanNash has been working to re-energize its retail grocery stores, which are positioned as neighborhood markets to differentiate them from supercenters and limited-assortment supermarkets.

Remodels have focused on enhancing the shopper experience, such as through expanded fresh, prepared and natural/organic foods; fast checkout lanes; and specialty stations such as Fresh Divide (where produce can chopped, diced or sliced on request), Betty Kaye’s Smokehouse (offering smoked meat prepared by pit masters and paired with special-recipe rubs, sauces and hot sides) and Donut Dohjo (offering gourmet doughnuts made fresh daily). The company also continues to roll out its Fast Lane click-and-collect service across its stores and has launched online grocery delivery with Instacart at select locations.

Earlier this month, SpartanNash reported that retail segment sales fell 3.7% to $446.3 million for its third quarter ended Oct. 6. The company attributed the decrease primarily to $15.1 million in lost revenue from the closing and sale of stores and a 1.9% dip in same-store sales (excluding fuel). Under the retail repositioning program, SpartanNash completed three store remodels in the third quarter and two early in the fourth quarter.

“We remain excited about our brand positioning and the resulting improvement in sales and customer satisfaction and will continue to roll it out to additional markets,” Staples told analysts in a conference call on third-quarter results.

Looking ahead to the fourth quarter, Chief Financial Officer Mark Shamber said in the call, “Within our retail segment, we expect comparable sales to improve sequentially, benefiting from our targeted store remodels and our brand repositioning, although we expect to end the quarter with a negative same-store sales comparison.”

In reporting the quarterly results, SpartanNash said it had retained Harvest Earnings, a third-party advisory firm, to help “transform our culture” to engage employees at all levels and field ideas on how to operate more efficiently and better serve customers to boost sales and profits.

The quarter’s end also saw a leadership change for the retail grocery business as Ted Adornato, executive vice president and general manager of corporate retail, retired effective Oct. 6 and was succeeded by Tom Swanson, who holds the title of senior vice president and general manager of corporate retail. Adornato had overseen the retail unit since 2003.

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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