AWG Posts Record $9B Sales

Associated Wholesale Grocers Inc. (AWG) has posted net sales of $9.18 billion, an increase of 2.7 percent, while year-end patronage distribution was more than $201.7 million, a new record, or 2.78 percent, of qualifying sales.

Shareholders of the Kansas City, Kan.-based retailer-owned cooperative gathered this week at the Overland Park Convention Center to review progress and celebrate its 90th year of operation, during which time total distribution to members, including promotional allowances, year-end patronage and interest, hit $546 million. Stock value increased to $2,000 per share, up 4.4 percent over 2016. Total members’ investment and equity ended the year with a new record at $544 million, up 14 percent and indicative of AWG’s strong balance sheet.

During his remarks, David Smith, AWG’s president and CEO, said: “This is your company, and we serve only one master in this business – our member retailers,” which speaks to AWG’s mission “to provide our member-retailers all the tools, products and services they need to compete favorably in all markets served.”

Barry Queen, chairman of AWG’s board, challenged each of the co-op’s 400-plus members in attendance “to take a hard look at your organizational chart. If you don’t have the ‘customer’ at the top … followed by those that deal most closely with the customer, then something is wrong.”  

Queen continued: “Customer service is still an element that differentiates us from our competition, so we better embrace it, believe it and live it."

AWG and its wholly owned subsidiary, Valu Merchandisers Co. (VMC), operate a network of 11 distribution centers serving more than 3,800 retail outlets that represent $20 billion-plus in retail supermarket sales.