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Wholesaler consolidation impacts independents
Supermarket News· 2025-10-08 17:28
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]
Instacart Partners with MDI to Offer E-Commerce Solutions for Independent Grocers
Prnewswire· 2025-08-28 13:00
Core Insights - Instacart has partnered with Merchants Distributors, LLC (MDI) to provide e-commerce solutions to independent grocers within MDI's network, enabling them to offer same-day delivery and utilize Instacart's Storefront Pro [1][2][3] Company Overview - Instacart is a leading grocery technology company in North America, collaborating with over 1,800 retail banners to facilitate online shopping, delivery, and pickup services from nearly 100,000 stores [5] - Merchants Distributors, LLC, founded in 1931, is a privately-owned wholesale grocery distributor based in Hickory, NC, supplying over 600 retail food stores across multiple states and exporting to over 30 countries [6][7] Partnership Details - The partnership aims to enhance the shopping experience for customers by allowing independent grocers to adopt Instacart's platform, which includes advanced customization capabilities and access to data analytics tools [2][3] - Storefront Pro will provide MDI's independent retail partners with full-stack fulfillment technologies for pickup and delivery, as well as access to Instacart Carrot Ads for monetizing their digital and physical presence [2][3] Market Positioning - With the introduction of Storefront Pro, MDI's independent retailers will join over 600 retail banners already utilizing Instacart's white-label e-commerce solutions, positioning them to improve customer engagement and unlock new growth opportunities [3]