Spartan Stores Remains Strong

GRAND RAPIDS, MI-Despite increased competition from supercenters, Spartan Stores sales and earnings performance remained strong for the second quarter with net earnings of $7.1 million and net sales of $485.5 million for the 12 week period ending Sept. 10, 2005. Both earnings and sales figures were comparable to the same period last year, the company said.

“We are pleased with these results because it demonstrates our ability to withstand the significant increase in new supercenter competition in our markets,” Craig C. Sturken, Spartan’s chairman, president and chief executive officer said in a conference call with investors and analysts Thursday. “Our financial performance has placed us in our strongest financial position in many years.”

Sturken said the company, which operates 54 supermarkets and 21 deep-discount drugstores in Michigan and Ohio under the Family Fare and Glen’s Markets names, among others, has made steady financial progress in the last 12 months despite the opening of eight additional supercenters and two Costco’s in the markets it serves. As a result of measures taken during the last 2½ years, Sturken said the company, the leading grocery distributor in Michigan, has seen its stock price increase from $2.34 cents on March 31, 2003 to $9.30 per share at the end of last week, accounting for a 290% return on investment during that period. The company’s shares were valued at $9.23 at the close of business Thursday.