retail news in context, analysis with attitude

In Minnesota the Star Tribune reports that an independent grocery retailer in Iowa, D&G Foods, has filed a lawsuit charging that Supervalu and C&S Wholesale Grocers colluded to limit competition.

According to the story, D&G operated a store called Gary’s Foods and “severed a 40-year relationship with Supervalu three years ago after it closed a Des Moines warehouse and began taking on some $1,500 in extra weekly fees to ship groceries from Minneapolis. The suit alleges that Supervalu could close warehouses without fearing competition from C & S thanks to a deal the two companies struck in August 2003. The deal led to the closing of six warehouses -- three for each company -- in the Midwest and New England.

“Dietrich said he now buys groceries from Edina-based Nash Finch Co., which has a Cedar Rapids warehouse just 17 miles from his store.”

The suit is seeking class action status for “thousands” of independent retailer affected by the alleged collusion.

KC's View: