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The Water Cooler
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Oklahoma grocery stores
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<blockquote data-quote="jstaylor62" data-source="post: 2711013" data-attributes="member: 6870"><p>Oklahoma used to have several small local grocery chains. Chains that were only 3 maybe 4 stores. Some like to claim that they were killed off by Walmart, but actually they were killed off by unions before Walmart really got started in Oklahoma. </p><p></p><p>Grocery stores have to buy from a Grocery Wholesaler. That Wholesaler Warehouse needs to be close enough to keep transportation costs down and large enough to leverage bulk purchases directly from manufacturers. For 20+ years, that wholesaler was Scrivner based in OKC. </p><p></p><p>Scrivner sold to virtually all the grocery stores in Oklahoma; Crest, Reasors, Griders, Red Bud, Best-Yet and many more. The grocery business is very tight on margins, so they have to control labor costs. </p><p></p><p>Scrivner's warehouse operations in OKC was faced with increased labor costs from the union. The management told the union they couldn't afford higher warehouse labor costs and remain competitive. The union wouldn't relent, so Scrivner started closing their grocery operation. They sold off what was left to Fleming Foods.</p><p></p><p>The big boys; Crest & Reasors survived by establishing their own small warehouses and bought in bulk for their chains of stores. The remaining grocery stores struggled in finding a cost effective grocery wholesaler and ended up closing. They started closing about the same time Walmart started expanding. </p><p></p><p>BTW - HEB is non-union</p></blockquote><p></p>
[QUOTE="jstaylor62, post: 2711013, member: 6870"] Oklahoma used to have several small local grocery chains. Chains that were only 3 maybe 4 stores. Some like to claim that they were killed off by Walmart, but actually they were killed off by unions before Walmart really got started in Oklahoma. Grocery stores have to buy from a Grocery Wholesaler. That Wholesaler Warehouse needs to be close enough to keep transportation costs down and large enough to leverage bulk purchases directly from manufacturers. For 20+ years, that wholesaler was Scrivner based in OKC. Scrivner sold to virtually all the grocery stores in Oklahoma; Crest, Reasors, Griders, Red Bud, Best-Yet and many more. The grocery business is very tight on margins, so they have to control labor costs. Scrivner's warehouse operations in OKC was faced with increased labor costs from the union. The management told the union they couldn't afford higher warehouse labor costs and remain competitive. The union wouldn't relent, so Scrivner started closing their grocery operation. They sold off what was left to Fleming Foods. The big boys; Crest & Reasors survived by establishing their own small warehouses and bought in bulk for their chains of stores. The remaining grocery stores struggled in finding a cost effective grocery wholesaler and ended up closing. They started closing about the same time Walmart started expanding. BTW - HEB is non-union [/QUOTE]
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