GRAND RAPIDS, Mich. -- Continuing its expansion pace, Spartan Stores Inc. said that it plans to relocate or build up to 10 grocery stores in the next three years. The company said it plans to add 15 fuel centers, which it sees as a draw for its stores, reported The Grand Rapids Press. About 30% of customers who buy fuel are taking advantage of cross promotions between the store and its gas stations. New fuel centers bump up a store's sales by about 5%, company president Dennis Eidson told the newspaper.
The construction includes the previously announced flagship store, although a timeline [image-nocss] has not been set, he added.
Two months before he takes over as Spartan Stores' new CEO, Eidson unveiled plans for the growing grocery distributor and retailer during the company's annual shareholders meeting Wednesday.
In the past fiscal year, the company completed five major remodelings, a replacement store and its first new store in five years, according to the report. Return on capital investment made in the past three fiscal years has yielded about 10%. In 2008, Spartan Stores invested $40.1 million, including $8.4 million in its retail operation and $31.7 million in distribution side.
In March 2007, Spartan Stores entered into a purchase agreement to acquire 20 retail grocery stores, two fuel centers and three convenience stores from G&R Felpausch Co., a privately held, Hastings, Mich.-based retail grocery operator and distribution customer. In September 2007, it closed five Pharm retail stores and one ExpressMart convenience store acquired in the deal.
Grand Rapids, Mich.-based Spartan Stores is the nation 's 10th largest grocery distributor with warehouse facilities in Grand Rapids and Plymouth, Mich. It distributes more than 40,000 private-label and national-brand products to nearly 400 independent grocery stores in Michigan, Indiana and Ohio. Spartan Stores also owns and operates 88 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, including Family Fare Supermarkets, Glen 's Markets, D&W Fresh Markets, Felpausch Food Centers and The Pharm; some Family Fare, Glen 's and D&W locations offer fuel through Quick Stop c-stores.
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