Delivering Profitable Growth

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Delivering Profitable Growth Craig Sturken,
Chairman, President and CEO Dennis Eidson, EVP
and COO David Staples, EVP and CFO
May 2007
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Forward Looking Statements
This presentation contains forward-looking
statements. Forward-looking statements are
identifiable by words or phrases such as
forecast, seek, project, target,
assume, strategy, positioned, potential,
or opportunities, that an event or trend may,
or will occur or continue or that Spartan
Stores or its management anticipates, plans,
expects, or is pursuing a particular result.
These forwardlooking statements are subject to a
number of factors that could cause actual results
to differ materially. Our ability to
successfully realize expected benefits of new
relationships, realize growth opportunities,
expand our customer base, effectively integrate
and achieve the expected benefits of acquired
stores, anticipate and successfully respond to
openings of competitors stores, achieve expected
sales and earnings, control expenses, realize
efficiencies, and implement plans and strategies
is not certain and depends on many factors, not
all of which are in our control. Additional
information about the factors that may adversely
affect these forward-looking statements is
contained in Spartan Stores reports and filings
with the Securities and Exchange Commission.
Other risk factors exist and new risk factors may
emerge at any time. Given these risks and
uncertainties, investors should not place undue
reliance on forward-looking statements as
predictions of future results. Spartan Stores
undertakes no obligation to update or revise any
forward-looking statements to reflect
developments or information obtained after the
date of this presentation.
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Key Investment Considerations

• Strong management team with proven grocery
  industry track record
• Retail and distribution operations in key markets
  within Michigan
• Leading market share in areas served
• Solid cash flow generation
• Proven alternative to the supercenter in Michigan
• Majority of store base remodeled and/or
  remerchandised during past 4 yrs.
• Strong metrics relative to peers
  SPTN NAFC SVU Peer Avg.
• Debt/Capital 39 53 64 58
• Total Debt to EBITDA(1) (2) (3) (4)
  1.3x 3.2x 3.3x 3.3x
• Retail Comps (SVU ID)(most recent
  quarter) 2.9 -0.3 0.0 -0.2
• Retail Sales as of Total Sales 48 14 80 47

1) Reflects Spartan as of 3/31/2007 and SVU and
NAFC as of their most recent quarter end 2) Does
not include pro-forma effect for Spartans
convertible bond issuance 3) SVU EBITDA estimated
to reflect full year with Albertsons 4) See note
on page 33 regarding EBITDA
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Key Investment Considerations

• Growth Opportunities
• Represent exit strategy for retailers in
  existing/contiguous markets
• Evolving Retail and Distribution industry
  landscape
• Existing customer sales penetration
• Corporate brand penetration
• Michigan retail market environment

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The Company

• 1 independent value-added food distributor in
  Michigan, 10 in U.S.
• 1 regional supermarket chain in Michigan
• 1 or 2 market share in core retail markets
• Serving Michigan independent grocers for 90 years
• FY 2007 revenues of 2.4 billion
• Recently announced events will lift sales
• Felpausch 100MM/200MM at retail
• Martins distribution business 100MM
• and provides significant strategic benefits

Segment FY 2007 YTD Sales
Distribution 52
Retail 48
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The Company

• GROCERY DISTRIBUTION
• Distribution complexes (2) 1.5MM sq. ft. total
• Grand Rapids (1.1MM sq. ft) and Plymouth, MI
  (.4MM sq ft)
• Serve nearly 500 stores
• Advantaged by geographic barriers to MI
• Differentiate as a value-added distributor
• RETAIL
• Supermarkets
• Average 40,000 sq. ft.
• Average 14MM in sales per year
• Differentiate on access and service at Family
  Fare
• and Glens
• Differentiate on product and service at DW
• Food/Drug Combo Stores
• Average 28,000 sq. ft.
• Average 9MM in sales per year
• Differentiate on price, pharmacy access

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The Industry Significant Events in our Trade Area

• Spartan acquires DW (March 2006)
• Increased Spartans annual sales by 200MM
• Was largest customer of Supervalus Fort Wayne
  facility
• Spartan announces acquisition of Felpausch
  (March 2007)
• Will increase Spartans retail sales by 200MM
  per year
• Supervalu announces sale of Scotts chain to
  Kroger (April 2007)
• Currently largest customer supplied from
  Supervalus Fort Wayne facility
• AP announces closure/sale of Farmer Jack to
  multiple buyers (April 2007)
• Spartan announces Supply Agreement with Martins
  (April 2007)
• Martins will become Spartans largest
  distribution customer
• Nash Finch announces 300 layoffs at its
  Westville, IN facility (May 2007)
• AP announces closure of its two warehouses in
  metro Detroit (May 2007)

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Market Share Combined Retail and Distribution
Operations
Spartans combined retail and wholesale
operations command a 1 or 2 share in its core
markets
Core Markets
Secondary Markets (Distribution Only)
Source Trade Dimensions Market Scope February
2007
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Market Environment Overview

• Weakening position of competitive distributors in
  region
• 80 Independent retail stores with at least 25,000
  sq. ft. are located within 200 miles of DC not
  currently served by Spartan
• Michigan Supercenter saturation well above U.S.
  average
• Independent grocers are seeking distribution
  partners with retail competence
• Current market environment may provide additional
  retail acquisition opportunities

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Market Environment Overview

• Population of Spartans core Northern and Western
  Michigan markets expected to grow faster than
  other Midwest areas
• 2005-2010 population growth projections
• 5 State Midwest 2.2 Western Michigan 4.1
• Michigan 1.9 Northern Michigan 2.7
• Toledo (MSA) - .3 Detroit (MSA) 1.3

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Source Spectra Enlighten Claritas
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Market Environment Supercenter Presence

• Supercenter Presence in Michigan
• Currently 143 supercenters in Michigan
• K-mart 7
• Meijer 90
• Wal-Mart 46
• Most of Spartans Michigan retail markets already
  contain a significant level of supercenter
  penetration

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Market Environment Supercenter Presence
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Sources Meijer and Wal-Mart websites and 2005
US Census data
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Market Environment Grocery Share by Channel in
Michigan
Format MI Ottawa/Kent North/West Detroit Superce
nter 26.46 35.14 31.96 14.90 Spartan
14.36 29.20 22.63
8.20 Other(1) 24.16 17.74
28.90 32.33 Club 6.22 7.55
3.63 8.64 Non-Spartan Independents(2)
13.70 5.94 8.83 13.46 Limited
Assortment 3.14 4.43 3.56
2.10 Chain 11.96 0
0.49 20.37
(1)Other represents Drug, Mass, Dollar and
C-Store/Fuel Center Share that could be
recaptured through our offering of convenience
oriented programs such as c-stores/fuel centers
and/or pharmacies (2)Non-Spartan Independents
represent opportunities to grow our Distribution
or Retail business
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Source Internal Spartan research - July 2006
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Competitive Advantage DISTRIBUTION

• 99 On-Time Delivery Record
• Low Customer Attrition Rate Customer Loyalty
  and Longevity
• Top 15 Customers Represent 55 of Distribution
  Sales
• Top 15 Customers Have Been Customers over 35
  Years on Avg.
• Serve Top-Performing Independent Retailers in MI
• Our Retail Success Translates into Credibility
  with Independents
• Value Added Distributor Providing Hands on
  Retail Expertise
• Access to merchandising and marketing programs
• Category management
• Graphics and printing
• Private label program development
• IT, accounting and payroll services
• Store construction and site selection (turn-key)

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Business Growth Opportunities DISTRIBUTION

• Distribution Growth Opportunities
• Capitalize on competitive landscape
• Increase existing customer penetration
• Increase private label penetration

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Business Growth Opportunities DISTRIBUTION
Competitive Landscape Attractive Opportunities

• Actively pursuing select wholesale accounts in
  MI, OH and IN
• Disruption in competitors facilities provides
  opportunities
• Potential acquisition of distribution facilities
  in contiguous states or markets
• Targeted new customer profile
• Independently-operated stores within a 200-mile
  radius of Spartan distribution centers
• Approximately 80 stores in Michigan, Ohio and
  Indiana meet this criteria

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Business Growth Opportunities DISTRIBUTION
Competitive Landscape Attractive Opportunities
- Cont.

• Struggling conventional operator may result in
  store closings and store sales in the Companys
  distribution markets
• Sizeable opportunity for additional wholesale
  volume as Spartan customers increase share by
  purchasing some of these stores
• Additional opportunity for incremental sales as
  Spartan customers receive benefit from stores
  that are not purchased and ultimately close

( in millions) Range of Potential Volume
Increases
Approximate Number of Competitive
Stores(1) 65 65 65 Assumed Purchased by our
Independents 10 20 30 Stores Purchased by
our Independents 7 13 20 Potential Spartan
Wholesale Volume Opportunity 35 50 100
(1) Represents estimated number of stores
operated by competitors that are expected to
close/divest some store locations.
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Business Growth Opportunities DISTRIBUTION
Increase Existing Customer Penetration
Average Customer Penetration(1)
75
Potential Volume 50 million(2)
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50

• Fresh Foods Initiatives
• Private Label Offerings
• Natural/Organic/Specialty Foods
• Category Management
• Value Added Retail Services

0
Current
Target
(1) Represents percentage of customers sales
purchased from Spartan. Current penetration is
based on top 33 customers average penetration
rate. (2) Assumes 5 percentage point increase in
penetration on aggregate warehouse sales of
approximately 1 billion.
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Business Growth Opportunities DISTRIBUTION
Corporate Brand Penetration (in units)
23.00
22.73
22.27
22.00
21.31
21.29
21.26
21.16
21.00
20.67
20.00
20.05
19.00
18.59
17.99
18.00
16.90
17.00
16.48
16.00
15.00
FY 2004
FY 2005
FY 2006
FY 2007
Total US - Food over 2MM
Spartan Owned Stores
Spartan Supplied Stores
Source A.C. Nielsen
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Business Growth Opportunities RETAIL -
Supermarkets

• Retail Growth Opportunities
• Pursue opportunistic acquisition of retailers in
  existing and contiguous markets
• Market segmentation differentiation strategy
• Add fuel centers and pharmacies to drive
  supermarket sales
• through recapture of convenience business
  taken by other
• retail channels
• Open new stores Fill in strategy and
  replacement
• Leverage convenience, health wellness consumer
  trends

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Business Growth Opportunities RETAIL - Pursue
Opportunistic Retail Acquisitions

• Opportunities exist to pursue strategic
  acquisitions leveraging Spartans strong
  platform
• Spartan has positioned itself to be the exit
  strategy for its
• wholesale customer base
• Acquisition criteria
• Accretive
• Potential to be 1 or 2 in market share within
  its market
• Fill-in opportunity to increase existing market
  share

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Business Growth Opportunities RETAIL Market
Segmentation and Differentiation Strategy

• Improved deli/bakery and prepared meal solutions
  across all supermarkets
• Improved private label program for DW stores
• Market segment opportunity
• DW Format provides access to the higher end
  consumer
• Private label program
• Full Circle natural and organic brand
• Presidents Choice premium brand
• Spartan national brand equivalent
• ValuTime price conscious brand
• TopCare Health and Beauty brand
• Aroma Street Bakery Our in-store bakery brand

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Business Growth Opportunities RETAIL - Open New
Stores/Fuel Centers/Pharmacies

• Fill-in opportunities in existing markets
• Relocation of older undersized locations
• Company currently has 10 fuel centers
• Expect to open 10-15 new fuel centers over next
  3 years
• Currently have pharmacies in 60 stores
• Opened 1 new pharmacy in FY 2007
• Completed acquisition of 12 pharmacies in FY 2007

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Corporate Governance

• Spartans Corporate Governance Practices
  outperformed
• 90 of the companies in the Russell 3000
  according to ISS
• Seven of eight directors are independent
• President - Harris Teeter President, COO
  Tween Brands, Inc.
• CEO - Tractor Supply Company Managing Director
  - Chetrum Capital LLC
• Chairman - Wolverine World Wide, Inc. Director
  Food Marketing Program - WMU
• EVP Herman Miller, Inc., President Herman
  Miller Health Care
• Board of Directors has significant retail and
  public company
• expertise
• Require equity ownership by board and executive
  officers

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Financial Overview
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Financial Overview Supermarket Same Store Sales
Trends (excluding fuel centers)
5.0
4.0
4.0
2.7
3.0
3.0
2.9
2.7
2.0
1.7
1.0
1.0
0.8
0.0
-1.0
-2.0
-3.0
-3.2
-3.2
-3.7
-4.0
-4.7
-5.0
-6.0
Q1FY05
Q2FY05
Q3FY05
Q4FY05
Q1FY06
Q2FY06
Q3FY06
Q4FY06
Q1FY07
Q2FY07
Q3FY07
Q4FY07
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Financial Overview Retail Sales Per Labor Hour
27
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Financial Overview Distribution Service
Level/Distribution Throughput
Throughput
Service Level
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Financial Overview Consolidated Statements of
Earnings
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NOTE EBITDA is a non-GAAP financial measure.
Please see Note regarding EBITDA on page 33.
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Financial Overview Consolidated Balance Sheets
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NOTE EBITDA is a non-GAAP financial measure.
Please see Note regarding EBITDA on page 33.
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Key Investment Considerations

• Strong management team with proven grocery
  industry track record
• Retail and distribution operations in key markets
  within Michigan
• Leading market share in areas served
• Solid cash flow generation
• Proven alternative to the supercenter in Michigan
• Majority of store base remodeled and/or
  remerchandised during past 4 yrs.
• Strong metrics relative to peers
  SPTN NAFC SVU Peer Avg.
• Debt/Capital 39 53 64 58
• Total Debt to EBITDA(1) (2) (3) (4)
  1.3x 3.2x 3.3x 3.3x
• Retail Comps (SVU ID)(most recent
  quarter) 2.9 -0.3 0.0 -0.2
• Retail Sales as of Total Sales 48 14 80 47

1) Reflects Spartan as of 3/31/2007 and SVU and
NAFC as of their most recent quarter end 2) Does
not include pro-forma effect for Spartans
convertible bond issuance 3) SVU EBITDA estimated
to reflect full year with Albertsons 4) See note
on page 33 regarding EBITDA
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Key Investment Considerations

• Growth Opportunities
• Represent exit strategy for retailers in
  existing/contiguous markets
• Evolving Retail and Distribution industry
  landscape
• Existing customer sales penetration
• Corporate brand penetration
• Michigan retail market environment

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Financial Overview EBITDA - Note
Notes Consolidated EBITDA is a non-GAAP
financial measure that our credit facility
defines as Net earnings from continuing
operations plus depreciation and amortization,
and other non-cash charges including imputed
interest, deferred (stock) compensation, LIFO
expense and costs associated with the closing of
retail store locations, plus interest expense,
the provision for income taxes and Michigan
Single Business Tax to the extent deducted in the
computation of Net Earnings. EBITDA is not a
measure of performance under accounting
principles generally accepted in the United
States of America, and should not be considered
as a substitute for net earnings, cash flows from
continuing operating activities and other income
or cash flow statement data. The EBITDA
information has been included as one measure of
the Companys operating performance and
historical ability to service debt. The Company
believes investors find the information useful
because it reflects the resources available for
strategic opportunities including, among others,
to invest in the business, make strategic
acquisitions and to service debt. EBITDA as
defined by the Company may not be comparable to
similarly titled measures reported by other
companies.
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Forward Looking Statements
This presentation contains forward-looking
statements. Forward-looking statements are
identifiable by words or phrases such as
forecast, seek, project, target,
assume, strategy, positioned, potential,
or opportunities, that an event or trend may,
or will occur or continue or that Spartan
Stores or its management anticipates, plans,
expects, or is pursuing a particular result.
These forwardlooking statements are subject to a
number of factors that could cause actual results
to differ materially. Our ability to
successfully realize expected benefits of new
relationships, realize growth opportunities,
expand our customer base, effectively integrate
and achieve the expected benefits of acquired
stores, anticipate and successfully respond to
openings of competitors stores, achieve expected
sales and earnings, control expenses, realize
efficiencies, and implement plans and strategies
is not certain and depends on many factors, not
all of which are in our control. Additional
information about the factors that may adversely
affect these forward-looking statements is
contained in Spartan Stores reports and filings
with the Securities and Exchange Commission.
Other risk factors exist and new risk factors may
emerge at any time. Given these risks and
uncertainties, investors should not place undue
reliance on forward-looking statements as
predictions of future results. Spartan Stores
undertakes no obligation to update or revise any
forward-looking statements to reflect
developments or information obtained after the
date of this presentation.
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