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Spartan Stores Optimizes Supply Chain Strategy

January 6, 2010

Grand Rapids, Mich.-based Spartan Stores Inc. announced plans to optimize its supply chain strategy. The retailer said it plans to operate all of its supply chain activities from its Grand Rapids distribution center. Part of this optimization strategy includes the potential closure of Spartan’s 415,000-square-foot dry grocery warehouse in Plymouth, Mich., by the end of its fiscal 2010 fourth quarter.

The retailer said the optimization strategy is expected to improve its distribution segment’s operational efficiency by increasing inventory turns, warehouse through-put and capacity utilization, while reducing administrative expenses and inventory investment requirements.

“The optimization of our distribution facilities and the current economic conditions provided us with an opportunity to restructure certain aspects of our organization,” said Dennis Eidson, president and CEO of Spartan. “As such, we will be able to eliminate a number of administrative positions. Collectively, these initiatives will strengthen our competitive position and help ensure that we continue to remain the low-cost supplier in our markets for many years to come.”