Byron Township, MI-
By ANUK Staff
2.18.13
In the next month, Spartan Stores will be moving in on SuperValu’s old ground - it will begin supplying Chief Super Market Inc. as the company ends its relationship with the floundering retail giant SuperValu.
CEO Dennis Eidson said that Spartan will continue to seek out distribution deals in the region to helop the grocer expand it’s Midwest wholesale operation.
“It’s strategic for us because we are in a water locked peninsula so we can only go south,” CEO Dennis Eidson told analysts on Thursday, Feb. 14, during a conference call to discuss third quarter results. “It’s a great springboard for us that we can capitalize in the coming year.”
Chief Super Market signed a deal with Spartan in January making it the primary wholesale supplier for the chain which operates 12 stores in the Northwest and West Central Ohio.
"We are committed to delighting our customers with great food and experiences, and believe that our new partnership with Spartan will help us achieve our mission as we offer our customers superior value and service," said Chief's CEO Stephanie Skylar.
“We are just thrilled to have them on board as customers,” said Eidson, adding that Spartan Stores' approach to the distribution business is to "offer more value-added service and thought leadership than other wholesalers in the space.”
Spartan had been “building a relationship” with Chief for years, setting the foundation for the grocer to switch this year, he added.
“Changing a wholesale is a very significant event if you are an independent owner,” Eidson said. “It takes a lot of courage to make the decision.”
Expanding the grocer’s distribution business outside of Michigan is a key strategic business growth initiative for the company.
“As we are successful in integrating that business into our Spartan family, I think it will provide a roadmap and template for other Ohio and Indiana retailers,” Eidson said. “It may allow them to have the courage to make that change.
