you're reading...
CPG Sales

From Target to Bi-Lo, Strategic Moves Impact Industry Rankings | Viewpoints

From Target to Bi-Lo, Strategic Moves Impact Industry Rankings

by David Orgel in Viewpoints

Feb. 01, 2012 5:41pm

Top 75 Retailers & Wholesalers 2012

The industry’s $1 billion dollar sales club is now just a bit less exclusive.

For the first time all companies making SN’s newly released Top 75, the annual ranking of North American food retailers and wholesalers, have surpassed the $1 billion sales mark.

That’s an impressive factoid to remember at industry gatherings and for office water-cooler conversations, even though it’s probably not the most important thing about this year’s list (see the Top 75 insert for the story and rankings).

It was inevitable that inflation would eventually push all the largest retailers past this dollar milestone. Some observers also noted that store closings by weaker operators played a role.

More important in the long term is how individual retailers are surging because of their strategies. This year’s rankings were impacted by sales growth at a number of retailers, including Target Corp. with it’s P-fresh food format now incorporated in close to half its stores; Bi-Lo with its renovation moves; and Fresh & Easy with its ongoing expansion.

Industry mergers played a role in the relative positions of several acquiring companies including 7-Eleven, Sprouts Farmers Market and PAQ.

In fact, The Food Institute has reported a 21% increase in overall food industry mergers in 2011, to some 384 transactions for retailers, suppliers and others.

What you won’t see on this year’s Top 75 list is the impact of deals and other moves still pending or those that occurred after the close of the latest fiscal years of the Top 75 retailers. In many years those late-season developments would have had little impact on the roster, but not so this time. The latest moves included:

Homeland Stores has been sold to its employees by Associated Wholesale Grocers, Kansas City. The sale involves 76 units, which will continue to be supplied by AWG.

Giant Food Stores has agreed to purchase 16 Genuardi’s stores from Safeway.

Bi-Lo and Winn-Dixie plan to merge in a deal that would create a $10 billion supermarket entity.

Delhaize Group plans to shutter 113 Food Lions and discontinue the Bloom banner as part of a wide-ranging reorganization strategy.

These late developments will surely figure prominently in next year’s rankings. Moreover, they have already set the tone for an action-packed start to the new year. Some analysts have predicted we won’t see much big merger activity this year, but even if that’s the case, there’s already been enough activity to keep the industry buzzing for a while.

via From Target to Bi-Lo, Strategic Moves Impact Industry Rankings | Viewpoints.


About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Connect on Twitter

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 41 other followers

RSS Daily Consumer Smart Brief

  • An error has occurred; the feed is probably down. Try again later.
%d bloggers like this: