A&P seeks new efficiencies in distribution deal with C&S

04/8/2008 | NJBIZ (New Jersey)

The Great Atlantic & Pacific Tea Co., fresh off its acquisition of 141 Pathmark stores, is working with distributor C&S Wholesale Grocers Inc. to create "one of the lowest-cost distribution systems in the Northeast grocery industry," the grocery company said. In a March regulatory filing, A&P said the distribution system affects its entire supply chain from purchasing to warehousing to logistics. A&P intends to pay a yearly fee to C&S, which also will have the chance to earn incentives "based upon A&P's cost savings and increases in retail sales volume," according to the filing.

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