Smart & Final caters to caterers -- as well as small
businesses, restaurants, and households across the western US. Its
about 276 non-membership warehouse stores stock groceries, party
supplies, paper products, cleaning supplies, and more, in bulk
sizes and quantities. The stores operate under the Smart &
Final, Smart & Final Extra!, and Cash & Carry banners in
urban and suburban areas in Arizona, California, Idaho, Nevada,
Oregon, and Washington, as well as in northern Mexico. Founded in
1871 in Los Angeles, the retailer later took the names of owners J.
S. Smart and H. D. Final. The chain went public in 2015.
The company went public in 2015. It raised $167.7 million from
the IPO, which it used in part to pay down its around $1 billion in
In addition to 236-plus Smart & Final Warehouse stores, the
retailer also operates about 55 stores under the Smart Foodservice
Cash & Carry name. The stores carry a broad range of
restaurant-quality food, food service supplies, and culinary
equipment. In addition, the grocer operates more than 127 Smart
& Final Extra! stores.
The Smart & Final business brings in around 75% of revenue
each year, and Cash & Carry brings in the remainder.
Smart & Final is headquartered in California and maintains
six distribution centers in the state. It operates stores in
Arizona, California, Idaho, Nevada, Oregon, and Washington. Outside
the US, Smart & Final operates more than a dozen stores in
Mexico through a joint venture with Calimax, a major grocery store
Sales and Marketing
Smart & Final serves several customer types, including food
service and household customers. Its food service clients are
typically operators of small restaurants, catering companies,
businesses, clubs, and civic organizations.
Note: Fiscal year 2015 consisted of 53 weeks.
Net sales have increased for the past three years, climbing 12%
on prior year to $3.9 billion in 2015. Sales growth was due mostly
to the addition of 20 new Extra! stores and two new Cash &
Carry stores in 2015, pushing sales in the segments up 14% and 8%
respectively. The extra week in fiscal 2015 also had a positive
effect on sales.
Net income has likewise been increasing of late, and rose 16% to
$38.3 million in 2015. The positive performance was mostly due to
the increase in net sales, partially offset by an increase in
employee compensation costs.
Cash flow from operations was up 16% on prior year, to $145.4
million. The increase was mainly down to higher depreciation and
amortization, deferred taxes and accounts receivables.
The company's growth strategy is based on opening new store
locations, particularly its Extra! stores as well as Cash &
Carry. It also plans to convert its Smart & Final stores to
Extra! stores. In 2016 the company plans to open 29 net new stores,
and relocate four existing stores. This builds on 2015, when the
company opened 20 new stores and relocated three. In 2015, Smart
& Final also acquired 32 locations from bankrupt Haggen
Holdings, and will convert the acquired stores into Extra!
Mergers and Acquisitions
Smart & Final acquired 32 stores from bankrupt Haggen
Holdings, which it will convert into Extra! stores.