SpartanNash Company (NASDAQ:SPTN) Q3 2023 Earnings Call Transcript

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And we’re going to be there partnering with them all the way. So in terms of your question, are we looking for other business, we’re always looking for other businesses, where we have a much of a growth mentality here, both in our retail stores, as well as wholesale. And we think we have a lot to offer. So we have a lot of great irons in the fire in terms of the types of businesses that we can bring back in. I mentioned in my opening comments, we’ve had a number of customers who may have left in quite some time ago, who are now coming back and taking advantage of the great services that we can provide. So we were very optimistic about growth in the future, both for Amazon as well as for our broader business.

Jessica Taylor: Great. Thank you for that. And just as a follow-up, can you talk a little bit about the drivers for your operating margin on the retail side and how we should think about the puts and takes of that into the fourth quarter?

Jason Monaco: Hey, Jessica. This is Jason. Yes. We’ve seen solid performance and I mentioned before the mix between pricing or disinflation and unit volume. So as we built our retail business operating plan we’ve been focusing on not just the near term of securing that volumes coming out of that price elasticity of disinflation, but also really focusing on the long term value creating opportunities that we have in retail. And I mentioned before that consumers are voting with their feet, Tony talked about the foot traffic outperforming the market significantly outperforming the market and outperforming — significant major mass market players in our marketplaces. And so we’re getting shoppers in our store. And not only are we getting shoppers in our store, but we’re outperforming in, in really key areas where we focused our strategic efforts around execution whether it’s meat, produce, local, bakeries, and service in the stores with high service helpful employees.

So we were winning in those spaces and we’re proud of that and that’s help to drive both mix paired together with our own brand offerings, and service to deliver a really nice package of a performance where we’re at or above the market norm from a comp standpoint.

Operator: And our next question is from Peter Saleh from BTIG. Your line is open.

Peter Saleh: Great. Thanks. Jason, you mentioned the GLP-1s and the benefit there. Can you quantify how big that benefit was on the pharmacy? And then are you also I’m assuming you’re seeing some correlation between folks that are buying these GLP-1s and lower calorie consumption? Just any color around that would be helpful. Thank you.

Jason Monaco: Yes, GLP-1 was the majority of growth in our pharmacies, overall. Pharmacies were net overall up about 20, I think about 25% to 27%. And then the majority of that growth came from GLP-1. We haven’t seen a step down and consumption as a result of that. I know there have been some other players who have mentioned that. We haven’t seen it explicitly in our stores. So something we’re monitoring of course, but I wouldn’t call it out as a driver.

Operator: I’m seeing no further questions. I’ll turn the call back over to our hosts.

Tony Sarsam: All right. Well, thank you all for your participation on today’s call. We certainly appreciate your interest in SpartanNash. And from our family to yours, we’d like to wish you all very pleasant Thanksgiving holiday season.

Operator: The meeting has now concluded. Thank you for joining and have a pleasant day.

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