Associated Wholesale Grocers Announces Temporary Reduction in Transportation Costs; David Smith and Barry Queen Share
KANSAS CITY, KS - Amidst inflation, supply chain delays, and various other transportation challenges, Associated Wholesale Grocers (AWG) is making a move that will benefit its member retailers. The grocery cooperative announced it will enact a temporary reduction to fuel surcharges through the end of the year and a one-time rebate for year-to-date activity.
“AWG is proud to be positioned to make this very significant investment to help our member-retailers maintain competitiveness and profitability, despite the ongoing fuel cost and inflationary headwinds and margin pressures; being driven by an increasingly price competitive retail climate,” David Smith, President and Chief Executive Officer, remarked.
AWG estimates the sum of the rebate and temporary reduction to exceed $9,000,000 for 2022, a press release noted.
Barry Queen, Chairman of the Board, also commented on the news.
“AWG’s great cooperative model, which always places members first, is truly on display with this decision,” said Queen. “AWG is easing the financial burden we’ve been experiencing on fuel with the temporary reduction of surcharges and is sending this money back to us now, instead of including it with patronage payments distributed in March. This is not something independent retailers expect from their wholesalers, and it’s fantastic that AWG as a cooperative is different and is financially positioned to continue bringing forward assistance when we need it most.”
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