Wholesaler consolidation impacts independents

Core Insights - The acquisition of SpartanNash by C&S Wholesale Grocers highlights a trend of consolidation in the grocery wholesaler industry, reducing options for independent and regional grocery retailers [1] - The grocery distribution industry is characterized by thin profit margins, leading to the absorption of acquired companies into larger entities, which may not cater effectively to the needs of small, often family-owned retailers [2] Company Transitions - Retailers like Yoder's Country Market and Saubel's Markets have switched wholesalers multiple times due to acquisitions, indicating instability in wholesaler partnerships [3][5] - Yoder's Country Market transitioned from C&S to Merchants Distributors Inc. (MDI) for better responsiveness to local product needs, despite longer delivery distances [4] Wholesaler Landscape - Despite consolidation, many remaining wholesalers are strong and well-positioned to serve independent and regional grocery retailers, suggesting a potential renaissance for these businesses [6][7] - Successful wholesalers are adopting hybrid business models, combining co-op and voluntary wholesaling, as seen with Wakefern [8] Recommendations for Retailers - Retailers are encouraged to issue requests for proposals (RFPs) to evaluate wholesaler offerings, ensuring they select the best fit for their needs [10] - Due diligence is essential when considering wholesaler offers, as initial financial incentives may not reflect long-term value [12]