The deal is a significant expansion of Shell’s directly controlled U.S. distribution and retail operations. Shell already has about 12,000 branded fuel and convenience locations across 49 states, but most are owned and operated by wholesalers and dealers
For distributors, Noble’s collapse illustrates the potential downside of building inventory and working-capital requirements around a large customer contract.
The Georgia investment expands a distribution model increasingly built around positioning inventory closer to customers while using automation and robotics to increase fulfillment speed and capacity.
Persistent labor constraints and higher wages are accelerating investment in warehouse technology, according to JLL. Companies increasingly want buildings with the clear heights, power capacity and structural specifications required for robotics and other automated systems.
The combination of organic customer growth and acquisitions is increasing the amount of business PFG’s distribution infrastructure must support.
The additional capital gives Likewise more flexibility to invest in both organic expansion and potential acquisitions as it builds its national distribution platform.
The July report showed easing costs in several areas important to distributors, particularly fuel and transportation.
The deal also underscores Sunoco’s strategy of combining a large fuel distribution network with transportation and storage infrastructure. The Dallas-based company operates about 14,000 miles of pipeline and more than 170 terminals.
Grainger said MRO demand strengthened across every major customer segment during the quarter, with manufacturing, government, contractors, and retail all contributing to growth.
The expansion builds on longstanding relationships with the distributors rather than creating new partnerships.