SpartanNash is ramping up its Hispanic grocery store expansion following record performance in the first quarter of 2025. During the company’s earnings call on Thursday, executives outlined plans to open several new stores targeting Latino communities in the Midwest.
The food solutions firm posted record adjusted EBITDA for the 16-week quarter ending April 19, driven by more substantial wholesale margins and positive comparable store sales. The company’s strategic roadmap includes a sharper focus on ethnic retail markets, especially Hispanic communities, through its Supermercado Nuestra Familia banner.
New Supermarkets Aim to Serve Latino Communities
CEO Tony Sarsam emphasized that expanding the company’s Hispanic food markets is a central pillar of SpartanNash’s three-pronged retail growth strategy. The other two include remodeling conventional and upmarket stores, as well as investing in convenience retail.
“We opened our largest ever grand opening event this past month with the newest Supermercado Nuestra Familia in Omaha,” said Sarsam. “This store expands access to culturally relevant products and services.”
SpartanNash now operates four Hispanic supermarkets in Omaha and plans to open at least three more in the Midwest before the end of 2025. Early next year, another two are expected to launch.
Conversions and New Builds Drive Growth
Sarsam noted that future Hispanic grocery store expansion will include both new builds and conversions of existing retail locations that have gone out of business. “These aren’t necessarily our stores. We’re identifying available properties in neighborhoods we can best serve,” he said.
CFO Jason Monaco added that the strategy blends market strength with brand awareness. “We began with converting a Family Fare store into a supermercado,” Monaco said. “We’ll now expand outside of Omaha into new geographies, including some where SpartanNash has no current retail presence.”
Monaco described the company’s approach as a deliberate “crawl-walk-run” strategy to ensure that each new store meets performance expectations and consumer needs.
Ethnic Stores Deliver Strong Results
The success of the Hispanic-format stores isn’t just theoretical. “These stores have led our portfolio in both top-line and bottom-line performance,” said Sarsam. “We remain very bullish on that channel.”
The latest Nuestra Familia converted store has already shown double-digit sales increases compared to its prior format, according to Sarsam. “It’s early days, but the numbers support our confidence.”
Related Article: Supermercado Nuestra Familia Grows in South Omaha
SpartanNash executives emphasized that performance data from established Nuestra Familia locations—some of which have been operating for over a decade—reaffirms the decision to scale this format. “These stores continue to grow profitably year over year,” Sarsam said.
Future Hispanic Grocery Store Expansion May Reach Michigan
Asked whether Michigan could see Hispanic grocery store expansion, Sarsam replied affirmatively but offered no timeline. With SpartanNash’s deep distribution infrastructure and growing ethnic product capabilities, the company appears well-positioned to reach new Latino markets in the Great Lakes region.
In addition to new Hispanic supermarket investments, SpartanNash is integrating recent acquisitions, including Fresh Encounter and Markham. These companies joined the portfolio in late 2024.
“So far, they’re delivering according to plan,” said Monaco. “We’re making sure to honor our commitments not just to business performance but also to employees and communities.”
Retail Momentum Builds on Operational Discipline
Sarsam credited SpartanNash’s performance to operational improvements since 2021. Strategic initiatives have generated more than $130 million in margin gains. The company recently launched an in-store bratwurst campaign across its Family Fare, D&W Fresh Market, and Martin’s Super Market banners, driving a 148% jump in grill-related sales during the first week.
Still, Sarsam made it clear that the Hispanic grocery store expansion offers SpartanNash one of its most promising opportunities. “We’re energized about the future and what these stores can do,” he said. “With each opening, we’re not just growing the business — we’re building deeper ties to the communities we serve.”