SpartanNash’s recent growth spurt may be just the beginning

“We’re growing,” asserts Amy McClellan, EVP and chief customer officer, highlighting the retailer-distributor’s keen interest in acquisitions. SpartanNash recently announced its second retailer acquisition of the year, this time acquiring Fresh Encounter, Inc., which operates a network of 49 stores across Ohio, Indiana, and Kentucky.

Earlier in April, the Byron Center, Michigan-based food distributor and grocery retailer expanded its reach by acquiring Metcalfe’s Market, a three-store grocery chain located in Wisconsin.

The acquisition of Fresh Encounter will enhance SpartanNash’s retail footprint by 33%. Fresh Encounter operates under various store banners, including Community Markets, Remke Markets, Chiefs Markets, and Needler’s Fresh Market. While the specific details of the transaction remain undisclosed, it is expected to close in late November, increasing SpartanNash’s total store count to 196 across 10 states.

This strategic deal has been in progress for several months and involves a long-standing wholesale customer of SpartanNash. It may well mark the beginning of a significant growth phase for the company.

In an interview, McClellan elaborated on how the acquisition fits into SpartanNash’s broader strategy. “This is really an exciting milestone in our strategic growth plan,” she noted, emphasizing that the acquisition would welcome 2,500 associates and boost top-line revenue through retail operations.

McClellan indicated that the deal had been a long time coming, with Fresh Encounter being a valued wholesale customer for 58 years. “When the family was ready to sell, we were the trusted partner they chose for this transaction,” she added.

Regarding the transition, McClellan confirmed that there are no planned store closings and that all Fresh Encounter associates will be retained. “It’s business as usual,” she stated, prioritizing continuity for the communities served. Over time, SpartanNash will consider any necessary brand consolidations, but maintaining strong community ties remains a priority.

When asked about future retail acquisitions, McClellan expressed a strong appetite for growth, stating, “We’re always looking for opportunities that align with our overall growth strategy.”

On the topic of changes to Fresh Encounter, she emphasized the focus on maximizing market share while preserving business continuity, especially during the upcoming holiday season. “We want to serve shoppers as Fresh Encounter has done exceptionally well,” she noted, recognizing the brand’s strong connection to its communities.

As for the Metcalfe’s Market acquisition, McClellan shared positive updates, noting the successful integration of stores and their ongoing commitment to community service. “They’ve embraced our people-first culture and are a vital part of our retail portfolio moving forward,” she remarked.

With two acquisitions in quick succession, SpartanNash is sending a clear message to the grocery industry: “We’re growing. Our focus is on leveraging insights to create innovative solutions in retail, continuously meeting and exceeding customer expectations,” McClellan concluded, reiterating the company’s commitment to customer satisfaction as the cornerstone of its growth strategy.