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Three Predictions for 2018

An end-of-supply chain perspective
Retail Reflections_2017

The next ‘megamerger’ – As mentioned earlier, conventional supermarkets have had a tough time in the stock market. Shareholders are voicing significant concern as to how conventional supermarkets respond to the Amazon/Walmart effect on the one end and the deep discounters on the other (as mentioned in my most recent column, last October).

Circumstances are ripe for a mega-merger for greater procurement scale and to leverage expenses. And quietly, in the background, are three privately-held companies that could go on the block: H-E-B, Meijer, and Publix. All three are very successful regional chains you hear very little about.

Might this be the year one or more of these retailers is sold? Their value will probably never be higher, and each would be an excellent addition to a national retail group. In any case, another blockbuster merger and/or acquisition may be in the cards.

Lastly, there will also be issues with NAFTA, immigration, transportation, and government regulation. And you never know what Mother Nature will throw at the industry…

So, leaders need to stay alert and be prepared to guide their respective companies or organizations though another challenging year.

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Bruce Peterson is the founder and president of Peterson Insights, Inc., a consulting company specializing in the complex challenges of the fresh food industry. Peterson began his career bagging groceries, and went on to work for several supermarket chains, including 17 years at Walmart Stores, Inc. He has owned and operated a wholesale produce company, and served as chief executive officer of both Naturipe Foods LLC and Bland Farms.