Fleming Cos. reportedly is seeking to modify or cancel its supply contract with Kmart Corp, following the retailer’s announcement that it will close another 326 stores and the wholesaler’s announcement of a quarterly loss of almost $90 million.
Kmart accounted for about 20 percent of Fleming's sales in the third quarter, but it is low-margin business with declining volume.
Kmart accounted for about 20 percent of Fleming's sales in the third quarter, but it is low-margin business with declining volume.
- KC's View:
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So let’s see if we have this right. Fleming is getting out of the retailing business because it can’t compete with Wal-Mart. Many, if not all, of its retail customers are having trouble competing with Wal-Mart -- especially Kmart, which was tossed into bankruptcy protection because it couldn’t cope with Wal-Mart.
Say…didn’t we have a story the other day that Wal-Mart was considering starting up its own wholesaling business that could cater to independents?
Maybe the Bentonville Behemoth should just buy Fleming…
