How do I find out if a grocery store depends on one main wholesaler?
Ask for the store’s supplier invoices over a full cycle of seasons and sort them by vendor. If one wholesaler supplies most of the shelves, read any agreement with that company, then ask what switching would cost in time, terms and shelf selection.
Start with the paperwork the seller already has. Purchase records grouped by supplier show the real pattern faster than any conversation. Look at the share going to the largest vendor, but also at how that share moves from season to season. A store that buys heavily from one source may simply be getting a good rate, and that is not automatically a weakness. The agreement matters more than the habit. Ask whether there is a written contract, a volume commitment, an exclusivity clause, or a banner or program the store belongs to. Find out whether it transfers to a new owner or needs the wholesaler’s consent. Your lawyer should read it before you commit to anything.
Then test the alternatives. Has the seller ever priced a second wholesaler? Do direct-store-delivery vendors, local farms or bakeries supply some categories already? A phone call to a competing supplier, with the seller’s permission, tells you what a switch might look like.
Last, ask about credit. Payment terms, any outstanding balance and any personal guarantee tied to the account all affect how freely you can negotiate after closing, so write down what you learn and bring it to your accountant.
Key takeaways
- Group purchases by supplier and see how the largest vendor’s share moves across seasons.
- Have your lawyer read any contract, exclusivity term or program membership.
- Ask about credit terms, balances and guarantees before taking over the account.
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to diversify your supply chain
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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