By George Anderson
A&P has reached a deal to turn over distribution in the U.S. to C&S Wholesale Grocers.
In a released statement, Christian Haub, chairman and chief executive officer of A&P, said, "It is a key step in our ongoing effort to reduce costs overall, and specifically to align our infrastructure to the 'New A&P' that will result from the completion of our announced restructuring plan. In addition, C&S's best-in-class expertise will enable our management to focus exclusively on the development and expansion of our fresh and discount retail formats."
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. A&P expects the deal with C&S will help the company achieve $40 million in annualized savings.
Moderator's Comment: What are the pros and cons of self-distribution versus being supplied by a wholesaler? Do you expect to see more large grocery chains move out of self-distribution and turn that area of their business over to wholesalers? - George Anderson - Moderator