Veteran C&S Wholesale Grocers executive Bob Palmer will be returning to the largest wholesale grocer in the U.S. as the company’s new chief executive officer. Palmer replaces Mike Duffy, who became C&S’ CEO in January 2018. Duffy’s strength was viewed to be in the strategic supply chain arena, not as an operator or merchant. Palmer is known for his procurement and strong customer relations skills. He will report to chairman Rick Cohen.
Palmer retired from the Keene, NH-based wholesaler in September 2019 after a 33-year career with the privately-held distributor. He had held many positions at C&S since 1986 and most recently was EVP and chief procurement officer of the company before he stepped down 13 months ago.
“C&S has been a leader in the rapidly changing grocery industry for over 102 years. We will continue to drive innovation and adapt to the dynamic market conditions to better serve and support our customers,” said Cohen. “These unique times have required us to refocus our efforts and priorities. Bob is a highly valued leader that has led C&S through times of change with much success. His unrelenting focus on customer service and innovative go-to-market strategies have helped us win in challenging times and will undoubtedly serve us well as we transform for the future.”
C&S, which virtually invented the retail third-party logistics and warehousing model in the late 1970s, has endured some challenging times over the past 10 months. In addition to COVID-related issues which have affected the entire grocery industry, the company’s largest customer, Ahold Delhaize USA, announced last December that it would be shifting to a self-distribution model over the next three years, thereby eliminating the need for C&S to serve as the primary supplier for three of the company’s largest banners – Stop & Shop, The Giant Company and Giant Food. C&S and Ahold’s relationship dates back to 1990. That loss of business is estimated to be worth approximately $11.5 billion annually.
And earlier this month, another large C&S client, Key Food, said it will be leaving C&S late next year (after its contract expires). The Matawan, NJ retail co-operative with 318 stores, will shift its primary supply to UNFI, which is building a new distribution center near Allentown, PA that will open next year. That wholesale business is valued at about $1 billion annually.