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GRAND RAPIDS, Mich. -- The board of directors of Spartan Stores Inc. here approved its first quarterly dividend payment of 5 cents per share beginning in the fourth quarter of fiscal 2006.
Craig C. Sturken, Spartan's chairman, president and c.e.o., said, "In light of our financial performance improvements during the past several years, we revisited our cash-management choices and determined that a cash dividend is appropriate because of our strong financial position, sustainable cash flow generation and favorable long-term outlook. The cash dividend will not affect our commitment to, and prospects for, long-term growth and capital improvements."
Sturken said the company is confident in its long-term business strategy of focusing on retail and distribution sales and earnings growth by continuing to improve product and service offerings, improve store level execution, construct new stores and expand existing stores.
"We will focus on expanding our distribution customer base and pursuing opportunistic acquisitions of retail stores owned by existing distribution customers, as well as other operators that will further strengthen our market positions," Sturken said.
The company distributes more than 40,000 private-label and national brand products to more than 350 independent grocery stores in Michigan, Indiana and Ohio. Spartan Stores also owns and operates 54 retail supermarkets and 19 deep-discount food and drug stores in Michigan and Ohio, including Family Fare Supermarkets, Glen's Markets and The Pharm.