INDUSTRY CONSOLIDATION: SPARTAN BUYS VG'S

One of the last sizable family owned supermarket chains in Southeast Michigan is being bought by Spartan. This should allow them to better compete with larger rivals...

• Kroger
• Meijer
• Walmart

Spartan has been on an acquisition tear the past few years. Chains they have acquired include...

• VG's [Pending 2008/2009]
  
• Felpausch Food Centers [2007]
  
• D&W Food Centers [2006 Spartan Stores acquired D&W Food Centers adding 16 supermarkets to its retail base for a total of 68 stores.]

Spartan Stores: 'Very little will change' when Fenton-based VG's Food and Pharmacy comes under new ownership

FENTON -- A staple in the community and one of area's last independent family-owned chains, VG's Food & Pharmacy has been bought up by the Spartan Stores chain.

The move helps the hometown chain compete with supermarket bigwigs -- including Meijer and Wal-Mart stores that also have been expanding in Genesee County, said David J. Livingston, a supermarket industry analyst...

What are your thoughts on supermarket industry consolidation?

CREDIT CRUNCH: BIG 3 DEALER CONSOLIDATION

The Wall Street Journal has an interesting story on how the Credit Crunch is squeezing car dealerships.

Tight Credit Puts Squeeze
On Big Three Auto Dealers
By JOHN D. STOLL
August 28, 2008

The credit crunch squeezing Detroit's Big Three auto makers is now spreading to some of their dealers, adding financial pressure to a group already strained by this year's big drop in auto sales.

Takeaway:

• The Big 3 are seeking to consolidate their dealer networks
  
• It will be costly to buy dealerships out
• The credit crunch will squeeze and consolidate car dealers
  
• Strategy and tactics are critical dealer survival
  
• No longer is size and scale a winning combination

This is a story to track closely for the next 6 months and out to 5 years from now. There will be tremendous change.

What are your thoughts?