SpartanNash, a prominent Midwestern grocery distributor and retailer, has announced the upcoming closure of four supermarket locations. This decision, confirmed by a company spokesperson, includes three Family Fare stores and one VG’s Grocery store, signaling a strategic realignment of its retail operations. The closures are expected to result in over 120 employee layoffs, as indicated in regulatory filings.
This move comes after SpartanNash reported in November a noticeable slowdown in grocery sector growth within its operating regions, contrasting with the broader U.S. market’s performance. While the company hasn’t explicitly detailed the reasons behind these specific closures, a spokesperson stated they are part of an ongoing assessment of their retail presence to optimize service for customers, employees, and communities. The closures are scheduled to occur over the next few months.
Layoff notices submitted to state authorities provide insights into the affected locations. Among them are Family Fare stores in Chippewa Falls, Wisconsin, and Glenwood, Iowa, and a VG’s Grocery in Caro, Michigan. Information regarding the third Family Fare location slated for closure was not immediately available in public records.
The closure of the Family Fare in Chippewa Falls will lead to approximately 45 job losses, while the Glenwood store closure will impact 23 positions. The VG’s Grocery closure in Caro is expected to result in 54 layoffs. The timeline for these job cuts begins with the Glenwood Family Fare on February 14, followed by the Chippewa Falls Family Fare and Caro VG’s Grocery on March 16.
SpartanNash has communicated that affected employees are encouraged to seek employment at other company-operated stores. This retail portfolio adjustment follows a period of expansion for SpartanNash, marked by the acquisition of over 55 retail locations in the past year. Notably, these acquisitions include Fresh Encounter, a 49-store chain across Ohio, Indiana, and Kentucky, Markham Enterprises, a Michigan-based chain of convenience stores, and Metcalfe’s Market in Wisconsin.
Despite these acquisitions, SpartanNash’s retail sales saw a modest increase of nearly 2% in the third quarter, reaching $675 million. This growth was largely attributed to sales from the newly acquired Metcalfe’s Market stores, which helped offset a general softening in consumer demand. The closure of these Family Fare Locations and the VG’s Grocery store represents a strategic effort by SpartanNash to refine its retail footprint and enhance operational efficiency in a dynamic market environment.
In conclusion, SpartanNash’s decision to close several Family Fare locations and a VG’s Grocery store reflects a strategic response to evolving market conditions and a drive to optimize their retail operations. While these closures will regrettably impact employees and communities, they are presented as a necessary step in the company’s ongoing efforts to ensure long-term sustainability and competitiveness within the grocery sector. The focus remains on adapting to market growth fluctuations and strategically managing their expanding retail portfolio.
