MONTVALE, N.J. -- A&P here last week said the transfer of its distribution operations to C&S Wholesale Grocers, Keene, N.H., would save it $40 million annually.
functions for A&P, which said it expects to incur costs of $65 million to $75 million related to the distribution changeover during the first half of this fiscal year. The transition of warehouse and operations was expected to begin this month and be completed by the fall.
"This agreement will expand our successful 20-year relationship with C&S," said Christian Haub, chairman and chief executive officer, A&P, in a prepared release. "It is a key step in our ongoing effort to reduce costs overall."
C&S could not be reached for comment.
In May A&P unveiled plans to divest its operations in Canada and the Midwest.
As previously reported, A&P's warehouses in Edison, N.J., and The Bronx, N.Y., will be closed as part of the C&S transaction.