- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the SpartanNash Company Third Quarter 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Kayleigh Campbell. ahead. go Please

Kayleigh Campbell

welcome earnings and SpartanNash third Company Good call. to XXXX conference quarter morning, the

On from Vice Eastern X:XX call everyone which Officer, Financial the was today Jason Time. should Tony Chief President Officer, morning the Sarsam, Executive have and issued access and earnings By this AM Executive Monaco. President to Chief the and now, company release are approximately at

as at well please a This as company’s website. For earnings copy recorded presentation, website the supplemental will on being visit is release SpartanNash’s replay be www.spartannash.com/investors. of call earnings a the the and available company’s

we will like include would to the of discussion number today’s statements. forward-looking that Before a begin, remind company you

non-GAAP to underlying financial the the the can comparable website pleasure Tony. which is trends believes the company’s recent forward-looking call make non-GAAP SpartanNash’s financial you measures. of over materially measures to will a no will discussion factors forward-looking to also release and see differ obligation filings, investors actual found measures turn the full business in refer of of most update a SpartanNash’s from statements. be it will or to has you earnings growth it my undertakes could results included from most Please of to these a company’s as on to references perspectives reconciliation The now cause revise this on these GAAP remember SpartanNash the measures, company number with The statements. that release SEC at If useful well And earnings to provide company morning the these as www.spartannash.com/investors.

Tony Sarsam

On sharing People I'd those NASDAQ ring epic and On our to we took an the We're long plan Monday, Investor you electric. came pleasure to York. coming to who with We Kayleigh, celebration. range a ring Last a of a Wednesday, bell. attended, it more getting you, and morning, the our and the like up about company’s opening at know we hosted SpartanNash. was to first cowbells better Thank Day room and New opportunity energy you culture with our in Halloween was absolutely in Thursday, the notch own week big we off prepared good strategy. First everyone. our thank had

all salute We also on associates Square. in featured Women Veterans Times And NASDAQ celebrated the SpartanNash heroes on Day. Top the on awards. we photos from storey our Friday, of the military of from seventh in company levels female Grocery week we Then leaders at this eight Tower

veterans within have We to are who of exchanges. to proud nation. you served you and great military our employ serve many our those SpartanNash to Thank and commissaries

are forever grateful We service. for your

our turnaround building long-term the this shareholder we're goals, have value momentum. we of and to turning since driven Now our start significant on

strategy, clear, a in programs and built detailed have a We place, purpose incredible leadership team.

creation is path $XXX to EBITDA achieve continuing significant team and our about our headwinds, to execute on entire million energized Our more Despite value our through the marketing and identity continued will and brand from we supply launched XXXX. This transformation, work targets. by to recipe achieving macro expect recently growth, around transformation than adjusted long-term doing long-term in we chain goal winning the the be are innovation. achieved successful our organic merchandising

our opportunities, EBITDA adjusted we to Additionally, would incremental evaluate continue inorganic to be target. which

prior EBITDA XX% historically now includes last which as prior year. We we and compared to approximately by adjusted release. than morning our announced XX% least reported the results, Compared military. year, third net food Now In segment, into jumping our distribution following EBITDA XX%. more we sales to increased both grew we than and Wholesale preliminary full adjusted top by by quarter results. This the line and more

from improved our XX% rate by transformation. prior while on-time And realized to see to a quarter, pleased the At we really an end year of the are year-to-date. We supply still significant X% compared rate quarter, stunning Wholesale impressive throughput by cost X.X%. chain rates delivery improved these the and reached improvements rate

the million in $XX of end run supply from the savings quarter, we rate transformation. of As secured our cost chain

have progress of our remains In in transformational of We made $XX to the achieving $XX strong, goal store million quarter. end this for savings by year. sales X% our in cost increasing great Retail, million the comparable

quarter. in marketing pleased margin unit plan detailed share time we gross dollars of XX compared retail that total basis And team strong every fueled local both expanded experience Our own execution second are delivered shoppers visit brands hometown growth in points retail consistency our has to sequentially growth with year-over-year stores. Building performance by our by the and we a insights, to ensure a our our on units. share developed and part

our investments people, a Year-over-year Our service, the fresh outpaced of rest shopper has beyond position customer better new strategy above includes store. and added in loyalty benefits. in our volume differentiated the and growth in-stock

We fresh are in and out XXX% rolled back the our money to program. recently committed best guaranteed

unique a and recently to D&W shopping banner. based materially outpacing are These our terrific upmarket Fresh Market the stores experience modern Michigan offerings Our product renovated company bring average. stores offer

better ever, more than on Now delivering of our the laser-focused remain ingredients a mission life. we for

to during wholesale committed food unprecedented customers our and environment. retail this are providing We inflationary for solutions

eating indulgent more shoppers seek the to consumers and while experiences. at our customers food continuing home retail are Our independent serve

own these offer Our great indulgent not brands option emptying wallet. cravings satisfy shopper's while to

just started. to continues and our innovation results team drive getting marketing is Our

inflation. As more help are we our label independent and private our to we programs, opportunities shopper’s retail customers build unlocking our even own combat

is our merchandising XXXX want to our I a key Now on transformation, goals. component reaching which touch to

to customers team's sustainable a pillars to resonates which little key about are better vision we our growth. doing recipe. the winning services value. and focus share unbeatable like The live what is ingredients offer life, with offer a products I'd customer led for include and merchandising to without Our value a can't unbeatable

food promotion. or rising focused combating costs, food a whether customer a price solutions at As buying on the on are is company, regular we

their with to cost commodity increases approach other Our on vendor comparing upgraded underlying merchandising data-driven has costs input the industrial based markets and team benchmarks.

retail provide and helps for customers. management cost and wholesale value our growth methodical drive Our

We are providing look join results. this to leading to both during I'm many capabilities providing bottom growth to updates are drive solutions inflationary that We market build journey the confident with on leading sustainable our find vendors our forward vendors you based with creative the I’m report regular environment. opportunity an us this of happy us to transformation. partnering and on for and will as top line merchandising pillars we that program on

Jason, our Before highlight wanted turning I fiscal increase guidance to recent call for to XXXX. the

and XX% $XXX year-to-date updated The at by supply are now prior approximately benefits $XXX was year. results. million, our we growing realizing versus to the Our adjusted EBITDA chain range is guidance driven the ongoing million from transformation the

the Looking long-term. both who have drive turn forward, greater I’ll right now that quarterly near place in will over through team our in we to remain confident growth the to Jason, and execute detail. walk we recipe and winning call on financials the

Jason Monaco

Thanks, us Tony on call. to welcome today’s joining everyone and

Before announced to a we results, we our segments. into jump change our operating

last furthers serve in as our segment. new transform Food operations, pre-release, Wholesale noted a one customers. we reflects better and our the segments way chain change supply Military network comprehensive into business Distribution As our and This distribution and combined to our manage the efforts week’s streamline we

the versus quarter the million almost $XXX.X net sales XX.X% quarter Now $X Wholesale versus primarily while the was year growth by billion sales increased third gross an in XX% by XXXX’s of Gross sales in to or expense profit XX.X% profit quarter of which or inflation. or to in $XXX.X for third The billion. decline $X.X favorably compared driven increase of year our segments, was gross in LIFO rate driven were increase and higher was both prior detailed the million in The driven quarter. points. results. of $X.X the Retail XX sales third margin prior Net by basis sales impacted of by million net net was sales, each

In to offset margin retail improvements of lower rates impact within in by margin addition Wholesale the the were rates segment. LIFO, partially

from and in to an points transformation. million EBITDA ongoing upfront year, achieved of compared incentive operating $XX.X by decreased These higher investments our percent a corporate offset were chain basis supply efficiencies our our in costs, As XX we prior reflecting Transformation increase partially million sales, Overall, from expense third $XX.X of administrative year. adjusted initiative. including efficiencies last quarter XX.X% our compensation expenses Merchandising

earnings net were $X.X reported million. Our

driven Our ratio compared our X.Xx of EBITDA for capital. increases adjusted X.Xx to end. inflation long-term The debt net year slightly increased due to working in to third primarily to prior increase was at quarter

quarter. Now turning impact $X.XX the XX% to billion in $XXX sales of our by the driven to in million increased quarter, favorable exceeded or the wholesale primarily in XX.X% third which segments. inflation, Net

The were included cases DG’s in-sourcing the case were compared within for modestly overall Although case demand X% prior military for military the lapping an volumes strong due decrease segment the segment initiatives. the volumes to channel. in year, impressive down XXXX to up

XXXX’s a As the due operating the the $XXX earnings quarter of channel adjusted X.X%. independent $XX year an impact $XX Adjusted partially higher $X year. lower with totaled to million offset totaled to operating Retail quarter costs quarter. million corporate September decline was cycled operating due chain a and million third administrative DG’s compared in in-sourcing sales Reported in earnings increase increase in the quarter. sales quarter in quarter also operating expense, the of to earnings rose quarter in earnings in trends. to the versus million million. $XXX came fully by in decrease of of case this in XXXX, which expenses, for $XX.X and higher was consistent for third The $X.X compared volumes planned, in reported wholesale supply prior million in of at modest The market LIFO third million current the

the third Tony store X% increase points basis quarter. sales remains at the for strong As of sequentially an quarter, second momentum from comparable our XXX mentioned,

was mentioned quarter. $XX.X $X.XX XXXX, the the a fiscal and operating costs. from were million $XX.X $XX.X working the Through of prior $X.X for quarter. third reported compared decrease $XXX due million year quarters year corporate profit The capital earnings dividends common to in rate the administrative quarter quarter with activities was rates we $X.X to in million million due Retail third to in gross million first In XXXX’s Our per cash compared the the prior million in in million share. cash third of a paid to changes quarter, retail $X.X we The ago. earnings three were along wage to moment Retail lower in operating compared operating the investments equal generated to adjusted decrease primarily period. of segment

we quarter, total through At shareholders the $XX.X to approximately also of In first total, the to end $XX million shares more share quarters of return the million the committed to back guidance we’re XXXX of raise third this returned $XX.X guidance, million. a XXX,XXX shareholders. three have than value year. are the last We for Day. bought of With our remaining on in to our our continuing authorizations purchase week announced advance Investor reiterating of we to and Company regard

now between year This be Wholesale year. to adjusted from our X.X% of million ongoing the EPS net retail And adjusted $XXX and our $X.X by to now Tony Our investments. $XXX per to recognizes range sales now it’s is to last profitability range to $X.XX are from is to benefits transformation $X.X Merchandising expected net expected EPS Transformation $X.XX growth, solid from adjusted update X% and chain billion our diluted EBITDA but new to and while from sales impact and and our increase headwinds full the between share. is tempered mentioned, billion. expected margin EBITDA expected range ranges as million, supply

X.X%. been the of our Food due Investor the the the comparable segments website. Operating will to retail guidance can previous X% Operating observed our well third posted be has sales the Prior portion trends combination updated in store expectations figures the and recast Relations viewed Distribution into segment. Military quarter the expect the to as deck year. of remainder in reflect also as on Wholesale These These for increase both We updates quarter of recast supplemental

to continued the has and Tony. and continuing the back expectations, build team we extremely our value. of turn sustainable are its recipe. to We with over Our remain shareholder and like execution And to outperform to winning committed now to call driving on momentum I’d grow pleased results

Tony Sarsam

Thank you, Jason.

you top performing to a This quarter, team to We our our a moment a for past SpartanNash our beyond their thank this honored winners fleet, our people-first-organization, thank and dedicated year’s the essential for above gone to from want the gathered warehouses their store our retail day cashiers ingredients entire As our associates. from take workers. stores, These to in team and associates. deliver other life drivers to and have leadership order associates. guests and celebrate service. better selectors frontline customers, I every to associates fellow frontline Congratulations our truck

Our our a and people for the of win. reason why key are positioned success we are part to

winning to turnarounds and We recipe are growth. from we on our executing are our pivoting

the the than will enable expect to top year, will target. plan Beyond of to this us that to $XXX million have achieve billion results achieve plan we additional EBITDA XXXX. by $X also adds we any to this more line. The adjusted M&A And be supplemental a

on turn operator call and to initiatives implementing open are up plan We With over I’d our the and reach like your to to strategic executing that, goals. our it questions. these for the back

Operator

of Cerankosky the question Instructions] Northcoast We [Operator from from line Chuck ahead. go the much. you Thank have very Please Research. first

Chuck Cerankosky

on morning, give into. a heads Not economic a view giving by prices us your you and of a think et Tony down, as you buying of but where there’s to quarter, congratulations. higher trading reality of and Great how retail can or at segments what inflation, by that. us stores Good into such customers necessarily reacting your course, Based they’re I fuel Jason, or if everyone. independent news of you cetera? the grocers, look own various suppose fair amount they’re could, are

Tony Sarsam

to, question. Thanks Chuck. Yes. the Happy for

So a couple things.

can we data. start obviously with So,

fresh with part what’s – and stores, have our and et inflation our growth growth going growth, our pound with in We we associated of growth unit revenue on cetera. see

And so fairly inflation. with a see associated the we was elasticity what predictable

netting we’re cases And the of down, points. to quarter are previous seeing out like overall store. in see that So are same inflation kind growth the X% XX-plus-percent were maybe X.X-ish we of a for

underneath national also making interesting. not higher inflation. decisions. brands, a though, the couple tradeoffs own have sort the is income on very They’re which What’s that because think at as lower quality is are are growth a people on things brands as that I those we similar One, our making of fast obviously fairly risen typically think price. offer rate a So going to I predictable

comparable in growing of the And brands rate brand. national own so are the our kind the X.Xx of

actually example, on people of more more from looking lot Where as maybe meats. toward brands are get So the it’s to I people stretch making – who accelerated. quarter, think value-added a just it as seeing use are in also the some like people we’re own of last We in great but are hamburger example. more making maybe buying now more trades less option those a dollars. tradeoffs growth see their and sort But areas I as steak higher an

of quality in to then on It instructive similar lower we that’s why table. serve an sharp where much. great us people seeking folks recession a for for like strong our cost get means higher time, to And food because are a of the items We value. still of with That’s on people you of same why behavior I terms dollars, can were are the tells there’s because housemate need fewer in us that joy indulgence. think protein with kind meats, their our a That’s get bit seasoned for a having what they offer for protein good who dollars thought we which serve at us. stretch more making continue trimmed Transformation value but at indulgent be they trade tradeoffs could the overall we price where to great and inflation, really, some our on that buck. things own and had really had the matters Merchandising experience saw are So trying meats, downs them to in pound. dinner they it great and brands opportunity that so And that bratwurst, things head on people their the matter. provide to had where same this our they’re of case our growth And for their have little making per they not their

we way. learning So look think all and we – those very we’re the along things carefully at

that that I So hope answers question.

Chuck Cerankosky

you. You Thank did.

Operator

King. you. Andrew ahead. CL Wolf The from Thank next from Please comes question go

Andrew Wolf

Hi. leverage with as you And it’s morning. obviously consolidate throughput go as big expenses. to skewed a although more Good little to but business it leverage on a I chain as guess the of well me or side just some good I to appears focus could kind the – expenses wholesale expense, I the of ask about sort supply mean, ask retail. of Wanted that leverage, – has towards showed of it, through parsed that

give And like called out little color So I a up. rates expenses think wage and expenses? you us being the on could how retail you

operating segments? a more relative was sense on to much either quantitatively leverage How there the each of perform at qualitatively Just or line? within the expense how of each other they

Tony Sarsam

take I’ll over stab more to Jason a detail. then it at hand for and that Great.

pretty is has things and broadly in of There’s And good hinted we’re And we guided more our allowing that’s have productivity is working in think two for cost chain both on what’s pressures more because around the we supply One efficiently overall, effectively. chain. at about the great them. kind our folks on you also supply programs our wages. smarter, business experiencing that leverage. transformation getting feel to environment some good that leverage a of I leverage really and going

numbers the solid because leverage those on there of So seeing that really throughput call. we’re we mentioned

neighborhood on are increases close our labor as overall within retail for entry-level in rates Xx, that months. Well, the over the extraordinary normally XX%. increased XX% is really in wage positions over And substantially course have the normal XX year, to – of would’ve which the you average you And wage Probably a we numbers of may last kind – those a that store experience obviously plus recall, in probably all cost lowered. had of the side some been On would’ve last taken rates. the Xx that’s year been timeframe.

kind in the up, leverage So which see would themselves a discussed little We keep source of we’ve had as also about of those rates this to bit on have little leverage why getting we say certainly better that in a stores. lent – we’re may inflation wage transitionary I in money in that pressure and for you is less our a the a phase, wages, outlook see overall of of positive margins. and invest to But that’s short-term. lot our

Jason Monaco

Tony. Only great I’d Thanks, couple add things a And a that, overview. to that Andrew. was

wholesale per a the reminder, in that case our into cost supply on is through then Just flowing and the and running naturally the to on X% around chain we’re lower about seeing wholesale side throughput flow businesses. movements

Tony and the retail dial little back an the wage increases. a On $XX I’ll kind bit, the in starting The mentioned retail gone have hour. side, wage clock increases $XX from of to

doesn’t that a really labor the – it’s our but impacts scale. indicative increase of portfolio Retail costs, the of it’s represent of Now it’s our of wage driver labor And front end of the segment. largest among in the kind the of drivers full –

expected going million, beginning They expenses. we impacts, to be to guidance hitting You labor $XX flow our of the were of typically in those quarters And going the to largest our we’ve proportion may pressures. are in due the wage of at year, of to north recall, our Retail they few as that when seen the bulk that segment. see what is are set impacts in, multiple increases be our inflationary last or to wage a the be we the

and expected. the week. last in So and a retail It the investment talked bit coming that viability in it’s people model we as a uptick an we long-term our significant is of little it’s about about

Andrew Wolf

equally those also Okay. segments segment Merchandising cost of And the the one the that mentioned kind loaded and upfront have you just both a higher does than comp into incentive follow-up, of proportionally? more Or other? or in Transformation. other and costs the Are merchandising,

Jason Monaco

on and as weighted is the should that the I to about incentive recorded share there. assign business of so the volume higher the incentive to the expenses the the on rateably are based on the company’s are kind to and performance you business. piece, of And based year would their nature and overperforming, total the one of think then segments that them on the of the say, compensation go business just of kind through based segment back on

weighing more Wholesale Transformation, focus effectively of Merchandising and doing procurement you our the that piece forward. buying, and business heavily as the the that going goods On on should we wholesale think on the about

Andrew Wolf

Great. That’s helpful. Thank you.

Jason Monaco

you. Thank

Operator

ahead. next go The Capital BMO question you. comes from Bania Thank Please Kelly from Markets.

Ben Wood

our Wood on Hi. Good you for questions. taking Kelly. for This morning. Thank Ben is

what You could signs pressure rates between little retail disparity would side. and your take it you guys on details proxy more start you that is see rates. good at wondering if there assuming more challenges I’m then of have of kind touched broadly performance? the stores the margin margin on the of bit margin to just wholesale And retail a kind rates serve, any risks what Are provide for are the the independents kind the or turnaround? wholesale easing impact to retail retail retail are a

Jason Monaco

structure then third think for Retail effects we’ll improves is kind potential about the the of thanks business question, and business. Jason. second itself margin This Thinking about and Sequentially, retail, margin. the the And how our across at we order Yes. Wholesale Ben. address gross

plan have opportunity hit the and margin? the sequential So is We our there QX. business your on, QX question to in bottom? from improve improvement What’s saw to Retail we an

market how the to on for is deploy smart of precise pricing margin. that what side. And continue with shoppers be and of business. we to What have be the we’ve is the the a teams out talked different for from being So find last feel the seeing that our margin is of retail couple to wholesaler our don’t so quarters day. as made independent of in challenges our get customers, imagine broadly, in seeing respect see progress that we the we we’re we margin customers. more have we to with of about and it little to our continue about not we the made our about we’ve with rest to extra a that pound good grocery and It’s we operate bring wholesale balance and benefits it’s in retail a about every one space. independent to and what best way that the it benefits we operating right the like one be We Thinking deal that retailer day every unique

So, our I efforts focus independents reason experiencing the another and customers win, really us would redouble are that it’s for because when we expect on to Transformation all have we and win Merchandising same together. challenges frankly, our our our

Ben Wood

and one And and if you. maybe that Thank for may, switching on to the details kind I of you were able of in XXXX kind providing if for ex-DG case independents Great. to volume. military. versus of case the wholesale Awesome. Thanks sort side. chains volume wondering then But just more, frame

course type Just to gauge what channel of guys seen – shifts the kind kind any of have pandemic? more the trying of saw get may over broadly, of a you

Tony Sarsam

Yes.

with we of the and saw I recover we've in in segment. as third think the piece. movement We’ve volume know, seen starting away north segment. maybe delivered from we Military the military shifts quarter, saw you in – We growth X% significant unit significant military the seen that

are it units think and grocery low about mid look unit available volume down at on retail we to So in just at single-digits. put how if to you is kind data least of publicly that perspective,

publicly our the are at If in you we're third or military of the available units look up north in quarter up X%. data, by segment

percentage and independent norms. tracking about volume retail independent growing similarly a round our is with importantly we that's And space, the So on shift channel we see side, retail military the businesses. our unit market between share. better significant points retail we're performance than performance XX In seeing see our relatively

volumes to to we're So very outperforming market plans to forward. going have the and we're with build and unit that proud of that respect continue

Ben Wood

Thank you. Great.

Operator

Research. from comes go question next The Please you. Hanus Spencer ahead. Wolfe Thank from

Spencer Hanus

for morning. taking Good Thanks the question.

few over your it for step shifting CapEx pretty the a to years. long-term Just up guidance, next significant calls

So where and with cost that are at? the And industry think those where you case trending do in you per where metrics over can up take versus step is today time? spend, throughput

Tony Sarsam

mean? on metrics per you cost the The case,

Spencer Hanus

Yes, and throughput.

Tony Sarsam

a is I thorough question. I my don't cost case per don't that very in – don't external, have bad we fingertips a have on – right I information, because it's on business think now. the the not

terms the more more businesses and combination of the to for shift host and than better in we What better work growth the on supply to efficient. more in investments a spending, for similar growth we is remodeling retail. our done stores to them, our CapEx you'll productivity chain overall the in see investments shoppers In presentation spend, of in and size of overall competitors supply chain essentially make the and on CapEx past. essentially CapEx go similar – in with aligned more The on recent would've

that's is in CapEx So the going. where additional strokes, broad

Jason Monaco

those around investments going opportunity really deploying that And continue and of in significant belts house our in specific case, question, customer a Yes, programs runway that still to that we'll for thanks ensure experience we see Tony. our on banners to expectations and both focus a out point, deliver ensuring very have terrific the right tied Further our to product way. each real shoppers with we're brand building on to type our suspenders to strength linking a of capital and be the building cost forward. we've great that banner consolidation, the and together with per that real is banners. customers the got And Spencer. a efficient We side build Tony's

that if the renovations support we I'd be And remiss that window store CapEx in engage investing raising consumers that be are and we'll year three our plan. though, way. the over this So along didn't requirements way of long-term in I say

delivering. the return we long-term invested million EBITDA And going been feel driving This the that $XXX plan. really we've nearly shareholder to capital us plus double on get also We value. in expect is about good help that to capital to

Spencer Hanus

captured think better are impacts also how then us CPGs And momentum you relaunch the your and and with ability upcoming helpful. an do build program, that remind transactions potentially network by to you interface today? how And of comp That's well? can that of as loyalty ad time with the program many your over

Tony Sarsam

We program. on data have still building the we're loyalty that, good out

of We loyalty still a a the business had program that or different to have in parts didn't one, speak. a of have so sort that's – so oven, high our

future answer so getting current a state, loyalty the of state, I on of lot unfortunately, great that getting program. We're we're for terms on in piece. we there's in And value we upticks. some think in early a how enhanced So about have you in the good the of the reads though think

Jason? So

Jason Monaco

maybe in of so XX%. the more that. bit got participation north on Yes, loyalty We've little program is color a our

markets north XX%. it's of Some

in For behavior, think expect will way linkage allow deploy us, and with to we to that consumer about program the we get that closer us consumers, and data shopping if promotional to and the consumers you expect those this really, every brand together really drive our activities store. to to again consumer-specific to the have link focus, each the it that and banner expectations experience the with

Spencer Hanus

you. Thank Great.

Operator

Thank you.

go from Bank. Deutsche ahead. question Next comes from Please Krisztina Katai

Krisztina Katai

quarter. I Hi, retail. on a and on good wanted to good morning, up follow congrats

to in pricing markets, you're in way also get you response I focus they're Is that on thoughts love the changing and it just just think environment you increased a about seeing your is inflation competitive peers? pricing We are heard on something and that Can being shopping? the and too. consumers use word your hearing rational today I that talk that on sharp to

Tony Sarsam

our watch certainly competitive We going watch in closely, on likely what's what's Yes. in closely. stores going very market, on very the

we're sort products on a studying pricing. in manage expectation key – What that sure of the bit, the of make difference we items. hands we those earlier those sure get building matter? they are best the just think my their on are what make comments that a making items And those terms little kind value that and as to that can, shopper of I we're

to set – to the of that inputs it items, merch of in working Again, the sort think of seeing at those price those transformation data fundamental the building we're between that and that and also experience, take and so the work – ensuring on our price and inflation well. that's see some have that we we're And the you’ll part them on in suppliers gets on those and with possible of basket promoted we pricing. bringing that, getting back competitive amongst shopping have stores. of blocks So most we're that points to our them best kinds back doing as and their where we'll lower we regular increase shopping and

the little the our the manage that their need lives. the overall that, that there's really, price stuff and mentioned bit of of have experience. going the they're that to also are more they to shoppers, We pricing. when a I eager folks balancing possible bit little best expect offering And what a a It's for that between find indulgent act want, overall really things for best to look the with bipartition

Jason Monaco

that wouldn't I add I'd Yes. The And this think want is, other thanks action. to this for question. a only is new Krisztina, the all you to thing

It's kicked drive around we've have forward. teams analytics capability about drives a sharp insight of a capability solutions, been solutions. optimize The that we up out And as retail move that stores. well, would together independence. week, them we experience itself something also for pricing customers and our be and a own shopper that talking got to because drive think leveraging analytics inflation terrific the to building our best shoppers that that to the as translate example from insights to it's and pricing has really So capability our and can about analytical on data good of wholesale spend last working performance our done job outcome capability we talked with pricing to and team really time an experience, frankly, We drive that pricing. really for

Krisztina Katai

their in least their It's of you inflation, to get meaningfully cycle? That's volumes Are increasing great. as soon. a we spend how ask vendors follow with the up? down. about obviously think I at promotional just volumes the And And not see do to least you food to really are color. up, case back abiding categories? that continue a anytime not Thanks in for wanted be unfold that Where lot do at

Jason Monaco

and characterize to And running it tight. inflation point, that profile about chains we've this wide, unit as is low vendors declines. time, we seeing are really single-digit promoting. I in the Yes, such changing industry it I double-digit, point hit is elasticity think that the volume way At wouldn't is same where we're the the have mid at supply are still

a with to respect part from promotional said, transformation category chains make incremental community. vendors. a to SpartanNash. lot our volume it continue a incentive walking opportunities to changes started the isn't That up really with as doesn't of table many that with bit, supply loosen until together have activity we're the to the and to step and So to away after to up really whole little from supplier partner that win mean winner go be to And of merch there

Krisztina Katai

much. so luck. of you Thank Best

Jason Monaco

you. Thank

Operator

have Please follow-up a Thank Chuck ahead. you. from [Operator go Instructions] Cerankosky line of Research. the question from We Northcoast

Chuck Cerankosky

One on paired gallons give as quarter some during on well gallon? more guys. as just Thanks gasoline, the data us can profit you how per

Jason Monaco

This thanks, Jason. Chuck. is Yes,

So gallons higher, saw Pricing say margins quarter up than up prior I about year. about in volatility And and was were per fair as kind we versus slightly from norm year-over-year. moved of in historical X% unit fuel significantly higher the retail the a of quarter markets. would amount pricing and our as market down up the in XX% were gallons, the gallon

Chuck Cerankosky

Thank you.

Jason Monaco

you, Thank Chuck. right. All

Operator

to and like Thank back you. Sarsam question-and-answer [Operator turn this the Instructions] would Ladies session. Tony for to closing our any conference I concludes remarks. gentlemen,

Tony Sarsam

report We look to again, participation we forward thank thank call. on our results. all with speaking fourth today's quarter for you Great, you. out your you And

of our into day ensure work head enjoy want families. meal to team special can our we hard with thank talented we As a every who associates to Thanksgiving,

So from day. our holiday family to all yours, Good we'd wonderful a wish like to season. you

Operator

much. attending gentlemen, has concluded. and conference now the Thank you today's very Ladies you for presentation. Thank

disconnect. now You may

SpartanNash (SPTN) 9 Nov 222022 Q3 Earnings call transcript