Shoppers believe grocers are making 14 times more profit than they actually are and also believe food-at-home inflation is about two times higher than reality, according to a new dunnhumby analysis. Are grocers in a “precarious position with their brand perception” in the face of rampant food inflation?
Walmart is known for its everyday low prices on products across the store, but a recent offer of a carton of 18 eggs for $2 at a store in Kentucky raises questions about how this particular location was able to offer a price so low. How much are Walmart and other large retailers able to influence pricing on commodities such as eggs?
Some of the world’s biggest footwear brands have been backing away from wholesalers’ shelves in favor of DTC channels, but new developments in shoe retailing are signaling that wholesale might prove to be a better fit. What do you see as the biggest challenges facing Nike and other footwear brands that have focused much of their resources on direct-to-consumer channels?
Yeti has decided to end sales to Lowe’s after two years. The premium cooler and tumblers maker cited supply chain disruptions and a heightened focus on core wholesale and direct-to-consumer channels as motivating the move. What would be the right and wrong reasons for Yeti to stop selling to Lowe’s?
Save A Lot was one of the largest discount grocery chains in the U.S. and now it’s not after having sold off its remaining corporate stores to focus on its wholesale operations. What does it take to succeed as a wholesale grocer in the current marketplace?
Restaurants are running into problems getting the ingredients they need to conduct business as semi-usual. Supply chain disruptions are forcing them to make unexpected changes. Is there a way that grocers, farmers markets and the like can step in to partner with restaurants to help address these supply chain/distributor problems?
Shares of SpartanNash rose 26 percent on Friday after the Grand Rapids, MI-based food wholesaler and retailer disclosed that it had entered into a commercial agreement with Amazon that includes warrants to acquire a minority stake. Does the deal with SpartanNash offer any insights into Amazon’s evolving grocery strategy?
The massive strain placed on the nation’s grocery supply chain as a result of the coronavirus pandemic may be revealing some shortcomings in the system. Which current supply chain challenges facing the grocery channel appear temporary and which need longer term attention?
At a keynote session Sunday at NRF, Walmart U.S.’s new CEO said the first step he took to drive employee satisfaction when leading Sam’s Club was to invest significantly in retention, particularly team leaders. Has it become significantly more important for retailers to retain their senior staff?
Sam’s Club earlier this week announced the chainwide launch of a free, same-day online order pickup program. Do you expect Sam’s free, same-day pickup program to prove popular with existing members while helping to recruit new ones?
Costco has tapped into members’ desires to hunt for fashion treasure to grow its clothing sales to $7 billion annually. What retailers/channels do you think are at greatest risk for apparel and footwear market share losses to Costco?
Tire shoppers at Sam’s Club could find faster, more accurate recommendations from store staff thanks to a new app they’ll have on their tablets. How important is it for retailers to use associate-facing technology to help speed the sales process along?
Amazon may soon seem a less hospitable place for small third-party sellers as it cozies up to larger retailers and shifts its percentage of products sourced from small suppliers to larger entities. Will Amazon’s apparent decision to reduce the wholesale business it is doing with small vendors have an impact on its performance?
The headline claims that the chain’s latest store concept is “reimagining the future of retail.” While that may or may not be so, there’s no doubt that the new Sam’s is, at the very least, different than the rest. What do you think Sam’s should be looking to learn from its new Sam’s Club Now in Dallas?
When news that Costco was revamping its snack bar menu to add more items designed to appeal to health-conscious club members, the chain decided to dump its Polish hot dogs, a move deemed just too radical for some Costco club members. Does Costco have an actual customer experience issue on its hands now that it is not selling Polish hot dogs at its snack bars?
On Monday, Supervalu announced that it had reached a definitive agreement to acquire Unified Grocers in a deal valued at $375 million. Will adding Unified Grocers make Supervalu a stronger wholesaler?
Club Pickup — the Sam’s Club version of click-and-collect fulfillment — is gaining traction with business customers and is poised for growth, said Jamie Iannone, president and CEO of Samsclub.com. How much of an advantage does Sam’s Club gain from incorporating digital tech in services such as click-and-collect fulfillment and Scan & Go?
Omnichannel is requiring both retailers and distributors to think in terms of “mass distribution” customized for single products to individual consumers. And retailers do not have the infrastructure, systems or resources to do it all. Do you see the role of third-party distributors greatly expanding to support the “anytime, anywhere” nature of omnichannel retailing?
SpartanNash’s share price jumped nearly six percent yesterday as news spread that the company is supplying Amazon in the e-tailer’s push to become a major force in the grocery business. Do you see the measure as a stopgap for Amazon or a longer-term decision to grow its grocery business with the help of a third-party?
The word innovation has become almost meaningless in the grocery business. So what exactly would a grocery executive do if given the title of chief innovation officer? Pay attention to Supervalu because we may be about to find out. What are the keys to achieving true innovation in established businesses such as grocery wholesaling and retailing?
Back in March, Supervalu made clear that its focus going forward would be primarily on its wholesaling operations, which serve roughly 1,900 independently owned and operated stores. That commitment was reinforced by the company at its recent shareholder meeting when discussing its recent acquisition of 10 Rainbow Foods stores in the Twin Cities area from Roundy’s. Is Supervalu headed in the right direction with its focus on grocery wholesaling?
Spartan Stores and Nash Finch announced yesterday that they’ve agreed to merge. Spartan shareholders will own roughly 58 percent of the company and Nash Finch shareholders will get the rest. How significant a deal is the Spartan/Nash Finch merger in wholesale grocery circles?
Now that Supervalu has completed a spate of sales and acquisitions, the question is: what comes next? The company, which had shifted most of its focus to retail operations in recent years, has now returned to its roots in grocery wholesaling. What does the future hold for Supervalu?
Costco is no lightweight when it comes to selling online, generating $2 billion a year in sales and being among the top 20 online merchants in the U.S. Yet that performance, while respectable, is not what the Costco organization expects of itself. How important is it for Costco to improve its online performance?
Last week’s announcement that Target Canada had chosen Sobeys as its wholesale grocery products supplier is being viewed by analysts familiar with the Canadian market as a positive for both companies, according to a Financial Post report. What do you think of the Target/Sobeys deal?
It’s a tricky road ahead for wholesalers, with fewer big retailers, and perhaps even some spin-offs of small chains down the line. Fuel prices and SKU rationalization are key issues. What are the risks involved in wholesalers’ own efforts at rationalizing SKUs?
Nash Finch found plenty of detractors in years past. But more recently, the grocery wholesaler has changed its approach and that has enabled it to prosper, enough that the company’s CEO is looking to build on its organic growth through strategic acquisitions. What is different about Nash Finch today compared to a few years back?
The definition of what constitutes a self-distributing chain may need some tweaking as the relationship between Penn Traffic and C&S Wholesale Grocers illustrates. Last year, C&S began buying general merchandise and health and beauty care products that Penn Traffic distributes to stores through its own distribution centers. Is the deal between Penn Traffic and C&S Wholesale Grocers the way of the future for regional supermarket chains?
It was this week in 2003 when RetailWire posted a story and discussion on Wal-Mart’s decision to sell McLane Company to Warren Buffet’s Berkshire Hathaway. Members of the BrainTrust weighed in with opinions on the future of food distribution and what Berkshire Hathaway’s ownership of McLane would mean for the company going forward…. What has being a wholly-owned subsidiary of Berkshire Hathaway meant for McLane Company?
In general, the food marketing industry has experienced sweeping changes in the last 20 years but, with the exception of food brokers, no segment has experienced more change than the general line or broadline distributors. Do food wholesalers, as we know them, have a future? If so, what form and function will they assume?
Is it time to merge the roles of wholesaler and broker into one? Wholesalers provide the efficiency necessary to distribute products of small manufacturers who are unable to own their own distribution facilities. Brokers support the information channel necessary to carry the manufacturer’s product message to local retailers and markets. Do the grocery and CPG industries need a new distribution model?
Ask Jeff Noddle what he thinks about Supervalu’s prospects and he’ll tell you that the company is “very well positioned for the long term.” It’s dealing with more immediate issues that has his attention at the moment. Yesterday, Mr. Noddle and company announced that it would sell 20 corporately owned grocery stores operating under the Shop ‘n Save banner. From your vantage point, what has been Supervalu’s response to the challenging sales environment the company and its competitors face?
Roundy’s chairman and chief executive, Robert Mariano, clearly sees the future of his company is in retailing. His counterpart at Supervalu, Jeff Noddle, is apparently happy to help accommodate him as his company agreed to take over distribution for 50 independent grocers in Wisconsin who have been supplied by Roundy’s. What does this deal do for Roundy’s and Supervalu?
A&P has reached a deal to turn over distribution in the U.S. to C&S Wholesale Grocers. Last month, A&P announced plans to focus on its retail business in the Northeast and seek ways to reduce supply chain and other costs. What are the pros and cons of self-distribution versus being supplied by a wholesaler?
With the sale of two distribution centers in Lima, Ohio, and Westville, Ind. to Nash Finch, Roundy’s has come closer to putting itself out of the wholesale grocery business. Is Roundy’s headed in the right direction? What does this sale say about the state of grocery wholesaling in the U.S.?
C&S Wholesale Grocers has said it will close two distribution centers acquired from Supervalu last September. What do you make of C&S Wholesale Grocers’ latest move?
Supervalu has decided to exit the Denver market, selling off its distribution center and nine retail store locations, reports Reuters. What are your thoughts on Supervalu leaving the Denver market?
BJ’s Wholesale Club is trying out a new tactic for fighting off competition from Costco, Sam’s Clubs and all the other retailers it competes with for consumer dollars. “The big news from BJ’s is that its new Life-Size merchandise has it playing small ball.” What are your thoughts on BJ’s Life-Size product sales?
C&S Wholesale Grocers is on the move. The Packer reports, it has signed an exclusive licensing agreement with The Nunes Co. of Salinas, Calif. to distribute vegetables under the Foxy brand name. What are your thoughts on C&S’ licensing agreement for the Foxy brand? Do you expect to see other wholesalers and/or large self-distributing chains follow suit?
C&S has begun serving Fleming customers in California and Hawaii, some 450 Foodland, IGA, Food 4 Less and other bannered supermarkets and superettes. If it follows the same business model that has made it successful to date, C&S will now have to gain the business of larger chains like Raley’s, Scolari’s and Stater Bros. Will the C&S model work on the West Coast as well as it has in the East?
The Topeka Capital-Journal provides a post mortem report on Fleming that says the wholesaler died because of its reliance on Kmart and suppliers’ demand for upfront payment before goods were shipped. Why did Fleming fail? What can others learn from the Fleming experience?
Reuters reports Supervalu has reached an agreement to purchase assets of Fleming from C&S Wholesalers, pending that company receiving approval from a bankruptcy court to buy Fleming’s wholesale grocery business. What will the grocery wholesale scene in the US look like after the acquisition is completed?
The chief executives of Supervalu and Nash Finch in separate conference calls with analysts expressed confidence that their grocery wholesale operations would fare well in head-to-head competition with C&S Wholesalers. C&S had its offer to purchase Fleming’s wholesale business for $400 million recently approved by the judge presiding over bankruptcy proceedings. How does C&S stack up against Supervalu and Nash Finch? Do you agree with the assessments of Jeff Noddle and Ron Marshall?
The Arizona Republic reports Bashas’ will supply groceries to 32 IGA stores in Arizona and New Mexico. The stores had been receiving supplies from Fleming. Bashas’, a 137 store chain, will supply the IGA stores from its 810,000 square foot distribution center in Chandler, AZ. What are your thoughts on Bashas’ decision to supply 32 IGA stores? Does the deal indicate Bashas’ plans on entering the wholesale grocery business?
Crain’s Chicago Business, citing sources close to the situation, has reported Supervalu is the probable buyer of Dominick’s Finer Foods. Current owner, Safeway, “is expected to announce the prospective buyer to unions representing Dominick’s workers” today. What is your view on Supervalu taking ownership of Dominick’s? What changes would you expect to see take place?
Philip Morris and RJR have ruffled feathers in the wholesale community in recent months by allegedly requiring distributors to achieve market share numbers for the manufacturer’s brands to gain discounts. Do cigarette manufacturer trade sales and promotion programs differ substantially from manufacturer programs in other categories? What impact are the current programs from cigarette manufacturers having on wholesale and retail distributors?
It goes without saying that wholesalers and the independents they serve are under serious pressure from Wal-Mart, dollar stores, category killers, the struggling economy, etc. So it was a bit surprising to find three wholesale executives at the recent GMA Executive Conference, if not in truly upbeat moods, certainly feisty and ready to continue the good fight and win some battles. Are grocery wholesalers and the independents they serve receiving equitable treatment from brokers and suppliers?
Grocery wholesaler competitors such as Supervalu and Nash Finch have been the beneficiaries of Fleming’s bankruptcy problems, with added business and higher stock prices. According to the Star Tribune, “Shares of Supervalu have nearly doubled since March 11 and shares of Nash Finch have nearly tripled during that time.” Are analysts being too bullish on the prospects of Supervalu, Nash Finch and others as a result of Fleming’s problems? What do you think the wholesale grocery picture will look like after Fleming’s situation sorts itself out?
Neil Stern, editor, Retail Watch told the Pioneer Press, “Wal-Mart has been rumored for years that it was going to get into the food distribution business and would use McLane as its business unit.” Mr. Stern said that the “loud sigh of relief” you may have heard last week were grocery wholesalers exhaling after learning Wal-Mart had sold McLane to Warren Buffet and Berkshire Hathaway. What do you expect Warren Buffet to do to expand McLane’s business?
CBS MarketWatch is reporting Wal-Mart has agreed to sell its wholesale grocery operation, McLane Company, to Berkshire Hathaway owned by the superstar investor Warren Buffett. What will the sale of the wholesaler mean for Wal-Mart and McLane?
© 2025 RetailWire · Privacy Policy · Terms & Conditions · Community Guidelines · Sitemap · Do Not Sell My Data
RetailWire.com is not affiliated with any of the brands, retailers, or companies discussed on this site.