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SpartanNash (SPTN) Unveils Acquisition of Metcalfe's Market
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In a significant move within the grocery retail sector, SpartanNash Co. (SPTN - Free Report) has officially announced its acquisition of Metcalfe's Market, a cherished three-store grocery chain in Wisconsin. This strategic acquisition is set to enhance SpartanNash's presence in the region, increasing its total number of stores in Wisconsin to seven.
Founded in 1917 by Henry and Teresa Hess, Metcalfe's Market has been a key player in the Wisconsin grocery scene, managed by successive generations of the founding family. The store is known for its commitment to premium quality food, sustainability and a focus on local products, exemplified by initiatives like Metcalfe’s Food Miles program.
With the acquisition, the family legacy will continue as the former owners, great-grandsons of the founders, join the SpartanNash team, integrating their family-oriented business ethos with SpartanNash’s broader operations.
The acquisition is characterized by a mutual commitment to maintaining core values such as quality and community service. SpartanNash has committed to preserving Metcalfe’s distinctive branding and core shopper experience, thus ensuring continuity for existing customers. Importantly, all current employees of Metcalfe’s Market will retain their jobs and can look forward to enhanced benefits and career opportunities within the expanding SpartanNash network.
Image Source: Zacks Investment Research
Enhancing Customer Experience
Customers of Metcalfe’s Market can expect the retention of the high-quality products they have grown accustomed to, along with an expanded selection including SpartanNash’s private label offerings, such as the Our Family portfolio of products. Additionally, an enhanced loyalty and rewards program featuring digital coupons and weekly grocery savings will also be introduced to enrich the shopping experience.
The co-owner of Metcalfe's Market expressed gratitude for more than a century of community support and shared excitement about joining SpartanNash. They highlighted the shared values between the companies, particularly their commitment to quality and community engagement. They mentioned that joining the SpartanNash family is a thrilling development and emphasized that both SpartanNash and Metcalfe’s uphold a longstanding dedication to quality and community, a tradition maintained over four generations.
The transaction is expected to be completed in spring 2024, subject to customary closing conditions, though the specific terms of the deal were not disclosed. This move is anticipated to leverage synergies between Metcalfe’s and SpartanNash, fostering growth and sustainability.
Securing Legacy and Driving Innovation
This acquisition not only marks a strategic expansion for SpartanNash but also ensures the continuation of Metcalfe's Market's storied legacy, aiming to uphold its foundational principles while steering it toward new horizons under the larger corporate umbrella of SpartanNash. This is seen as a positive step toward reinforcing the commitment to providing exceptional service and products to the communities in Wisconsin, thus furthering a legacy of local engagement and quality that both companies share.
Other Growth Endeavors
SpartanNash has been diligently working on several strategic initiatives and fundamental growth factors aimed at enhancing its operational excellence and community engagement, thereby solidifying its market position and growth trajectory.
The company is expanding the use of Simbe's autonomous inventory robot, Tally, to 60 additional stores across the Midwest after a successful pilot in 15 stores. Tally provides real-time inventory insights, helping associates save time and ensuring that products are fresh, stocked and competitively priced. This move is part of SpartanNash's investment in technology to improve the shopping experience.
However, in the fourth quarter, the company faced challenges in both its wholesale and retail segments. Wholesale net sales dropped 2% year over year to $1.598 billion, mainly due to decreased volume in the national accounts channel. Retail net sales also fell 4.5% to $647 million, with comparable store sales declining 2.8%, largely due to reduced food assistance benefits and lower fuel sales.
Shares of this Zacks Rank #5 (Strong Sell) company have declined 17.2% in the past six months against the industry’s 26.6% growth.
Better-Ranked Staple Bets
Here, we have highlighted three better-ranked stocks, namely, Sprouts Farmers Market, Inc. (SFM - Free Report) , Performance Food Group Company (PFGC - Free Report) and Celsius Holdings (CELH - Free Report) .
The Zacks Consensus Estimate for Sprouts Farmers Market’s current financial-year sales and earnings suggests growth of 6.7% and 3.9%, respectively, from the year-ago reported figures. SFM has a trailing four-quarter earnings surprise of 10%, on average.
Performance Food Group Company markets and distributes food and food-related products. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Performance Food Group Company’s current fiscal-year sales and earnings suggests growth of 3.2% and 9.8%, respectively, from the year-ago reported numbers. PFGC has a trailing four-quarter earnings surprise of 4.8%, on average.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank of 2. CELH has a trailing four-quarter earnings surprise of 67.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 41.6% each from the year-ago reported numbers.
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SpartanNash (SPTN) Unveils Acquisition of Metcalfe's Market
In a significant move within the grocery retail sector, SpartanNash Co. (SPTN - Free Report) has officially announced its acquisition of Metcalfe's Market, a cherished three-store grocery chain in Wisconsin. This strategic acquisition is set to enhance SpartanNash's presence in the region, increasing its total number of stores in Wisconsin to seven.
Founded in 1917 by Henry and Teresa Hess, Metcalfe's Market has been a key player in the Wisconsin grocery scene, managed by successive generations of the founding family. The store is known for its commitment to premium quality food, sustainability and a focus on local products, exemplified by initiatives like Metcalfe’s Food Miles program.
With the acquisition, the family legacy will continue as the former owners, great-grandsons of the founders, join the SpartanNash team, integrating their family-oriented business ethos with SpartanNash’s broader operations.
The acquisition is characterized by a mutual commitment to maintaining core values such as quality and community service. SpartanNash has committed to preserving Metcalfe’s distinctive branding and core shopper experience, thus ensuring continuity for existing customers. Importantly, all current employees of Metcalfe’s Market will retain their jobs and can look forward to enhanced benefits and career opportunities within the expanding SpartanNash network.
Image Source: Zacks Investment Research
Enhancing Customer Experience
Customers of Metcalfe’s Market can expect the retention of the high-quality products they have grown accustomed to, along with an expanded selection including SpartanNash’s private label offerings, such as the Our Family portfolio of products. Additionally, an enhanced loyalty and rewards program featuring digital coupons and weekly grocery savings will also be introduced to enrich the shopping experience.
The co-owner of Metcalfe's Market expressed gratitude for more than a century of community support and shared excitement about joining SpartanNash. They highlighted the shared values between the companies, particularly their commitment to quality and community engagement. They mentioned that joining the SpartanNash family is a thrilling development and emphasized that both SpartanNash and Metcalfe’s uphold a longstanding dedication to quality and community, a tradition maintained over four generations.
The transaction is expected to be completed in spring 2024, subject to customary closing conditions, though the specific terms of the deal were not disclosed. This move is anticipated to leverage synergies between Metcalfe’s and SpartanNash, fostering growth and sustainability.
Securing Legacy and Driving Innovation
This acquisition not only marks a strategic expansion for SpartanNash but also ensures the continuation of Metcalfe's Market's storied legacy, aiming to uphold its foundational principles while steering it toward new horizons under the larger corporate umbrella of SpartanNash. This is seen as a positive step toward reinforcing the commitment to providing exceptional service and products to the communities in Wisconsin, thus furthering a legacy of local engagement and quality that both companies share.
Other Growth Endeavors
SpartanNash has been diligently working on several strategic initiatives and fundamental growth factors aimed at enhancing its operational excellence and community engagement, thereby solidifying its market position and growth trajectory.
The company is expanding the use of Simbe's autonomous inventory robot, Tally, to 60 additional stores across the Midwest after a successful pilot in 15 stores. Tally provides real-time inventory insights, helping associates save time and ensuring that products are fresh, stocked and competitively priced. This move is part of SpartanNash's investment in technology to improve the shopping experience.
However, in the fourth quarter, the company faced challenges in both its wholesale and retail segments. Wholesale net sales dropped 2% year over year to $1.598 billion, mainly due to decreased volume in the national accounts channel. Retail net sales also fell 4.5% to $647 million, with comparable store sales declining 2.8%, largely due to reduced food assistance benefits and lower fuel sales.
Shares of this Zacks Rank #5 (Strong Sell) company have declined 17.2% in the past six months against the industry’s 26.6% growth.
Better-Ranked Staple Bets
Here, we have highlighted three better-ranked stocks, namely, Sprouts Farmers Market, Inc. (SFM - Free Report) , Performance Food Group Company (PFGC - Free Report) and Celsius Holdings (CELH - Free Report) .
Sprouts Farmers Market operates in a highly fragmented grocery store industry. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sprouts Farmers Market’s current financial-year sales and earnings suggests growth of 6.7% and 3.9%, respectively, from the year-ago reported figures. SFM has a trailing four-quarter earnings surprise of 10%, on average.
Performance Food Group Company markets and distributes food and food-related products. The company currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Performance Food Group Company’s current fiscal-year sales and earnings suggests growth of 3.2% and 9.8%, respectively, from the year-ago reported numbers. PFGC has a trailing four-quarter earnings surprise of 4.8%, on average.
Celsius Holdings, which offers functional drinks and liquid supplements, currently carries a Zacks Rank of 2. CELH has a trailing four-quarter earnings surprise of 67.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current financial-year sales and earnings suggests growth of 41.6% each from the year-ago reported numbers.