A&P, C&S to Merge A&P, Pathmark Supply Deals
The Great Atlantic & Pacific Tea Co., Inc. and C&S Wholesale Grocers, Inc. said yesterday they had signed a 10-year agreement to merge their previously separate A&P and Pathmark supply agreements into a single agreement.
The agreement restructures the terms of the relationship, aligning distribution operations, procurement practices, and warehousing facility goals for all of Montvale, N.J.-based A&P's retail banners.
"The contract is a major change in the way A&P and C&S work together," said A&P in a statement. "With this agreement A&P and C&S will create increased efficiencies across A&P's distribution network, improve service levels to all stores, and enable both companies to achieve cost savings, which further contributes to the attainment of A&P's synergy targets."
A&P said key aspects of the agreement include a new business model, a dedicated network of distribution centers, coordination and collaboration of resources, the reduction of on-hand inventory, improved in-stock levels, best-in-class service levels with improved speed-to-market delivery, and cost reductions that should result in savings for shoppers.
A&P and Keene, N.H.-based C&S said they hope to develop one of the lowest-cost distribution systems in the Northeast grocery industry. They said they also plan to create what they call a "world-class" distribution system to meet the merchandising needs of A&P's various store formats, providing customers with superior product selections.
"Our partnering with C&S and its high-tech infrastructure, combined with our new agreement, creates the value that is only derived from a 'big-business model,'" said A&P president and c.e.o. Eric Claus.
"This agreement revolutionizes the way we do business with large retailers," added C&S chairman and c.e.o. Richard Cohen.
A&P operates 456 stores in eight states and the District of Columbia under the following banners: A&P, Pathmark, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh. and Food Basics.
The second-largest food wholesaler and the 10th-largest privately held company in the United States, C&S distributes food to supermarkets, retail stores, and military bases across the country, serving more than 5,000 stores from over 70 locations in 12 states.
The agreement restructures the terms of the relationship, aligning distribution operations, procurement practices, and warehousing facility goals for all of Montvale, N.J.-based A&P's retail banners.
"The contract is a major change in the way A&P and C&S work together," said A&P in a statement. "With this agreement A&P and C&S will create increased efficiencies across A&P's distribution network, improve service levels to all stores, and enable both companies to achieve cost savings, which further contributes to the attainment of A&P's synergy targets."
A&P said key aspects of the agreement include a new business model, a dedicated network of distribution centers, coordination and collaboration of resources, the reduction of on-hand inventory, improved in-stock levels, best-in-class service levels with improved speed-to-market delivery, and cost reductions that should result in savings for shoppers.
A&P and Keene, N.H.-based C&S said they hope to develop one of the lowest-cost distribution systems in the Northeast grocery industry. They said they also plan to create what they call a "world-class" distribution system to meet the merchandising needs of A&P's various store formats, providing customers with superior product selections.
"Our partnering with C&S and its high-tech infrastructure, combined with our new agreement, creates the value that is only derived from a 'big-business model,'" said A&P president and c.e.o. Eric Claus.
"This agreement revolutionizes the way we do business with large retailers," added C&S chairman and c.e.o. Richard Cohen.
A&P operates 456 stores in eight states and the District of Columbia under the following banners: A&P, Pathmark, Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh. and Food Basics.
The second-largest food wholesaler and the 10th-largest privately held company in the United States, C&S distributes food to supermarkets, retail stores, and military bases across the country, serving more than 5,000 stores from over 70 locations in 12 states.