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BYRON TOWNSHIP, MI -- SpartanNash is remodeling six Michigan grocery stores along the west side of the state from the Family Fare store in Marshall to the D&W Fresh Market in Petoskey.
The remodels were part of a fourth quarter capital plan announced during a conference call with investors this week, when the Michigan-based grocer discussed fiscal 2015 third quarter results.
SPARTANNASH 2015 Q3 EARNINGS REPORT
Profit: $15.3M, or $0.41, down 10%
Adjusted: $0.49, up 6%
Revenue:$1.78B, down 2%
Expectations: $0.49/$1.81B
Stock price: $23.20, down $0.88
The remodels are completed or will be by the end of the year, Meredith Gremel, company spokeswoman said after the call.
Two are D&W Fresh Market stores, the company's upscale brand. The $2.8 million makeover of the Breton Village location in Grand Rapids was recently unveiled, and the Petoskey store, at 1163 U.S. 31 North, is slated for a Dec. 13 re-grand opening.
RELATED: West Michigan's first Jamba Juice part of $2.8M store remodel
Four Family Fare stores -- two in Holland at 993 Butternut Dr and 1185 S. Washington, one in Zeeland at 9479 Riley Road, and one in Marshall at 15900 W Michigan Ave -- will have their grand opening celebrations in January, Gremel said.
All stores are remaining opening during the remodeling upgrades.
Outside of Michigan, SpartanNash is updating its Dan's Supermarket in Bismarck , N.D. In the last quarter, grocer completed six remodels of stores in the Nebraska market that were converted to the Family Fare banner. The makeover brought a bigger selection of organic produce and fresh sushi to the stores. Starbucks cafes were added to three of the stores.
During the same time period, SpartanNash leaders noted the closure of two Western stores and a distribution center in Junction City, Kan.
"This facility was underutilized and not strategically located, and all of the existing business was easily transferred to our Oklahoma City facility," Chief Executive Officer Dennis Eidson told analysts. "As a result of this move, we anticipate better service and product quality for the military customers that were affected."
In other news to come out of the Nov. 12 call, SpartanNash leaders noted the multi-regional grocery distributor's health care costs have fallen as a result of the synergies created with its 2013 merger with Minneapolis-based Nash Finch, and that the company recently settled a contract with its unionized employees.
CFO David Staples praised the company's human resource team for reducing health care costs while being sensitive to employees' concerns for coverage.
"It's been an area we've been able to really bring down dramatically," Staples told analysts.
Gremel declined to share the percentage of savings the publicly-traded company saw from changes to its health care program.
SpartanNash ratified a two-year contract in October with Teamsters Local 406 which represents the company's Byron Township warehouse, trucking and maintenance employees. Gremel declined to say how many employees are impacted by the contract.
"This agreement will continue to provide our associates with a competitive wage and benefit package, while enabling the company to continue to increase operational efficiencies," Eidson said.
He added that the company is anticipating pay hikes for other employees because of new legislation that is bumping up the minimum wage in Michigan, Nebraska and Minnesota.
"We're budgeting for those increased wage rates in our business model," Eidson said.
Shandra Martinez covers business for MLive/The Grand Rapids Press. Email her or follow her on Twitter @shandramartinez.