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Chapter 429 Integration in Progress

Upon hearing Quinn's words, Grom's previously relaxed facial features instantly tightened, and a barely perceptible hint of seriousness flashed across his deep eyes.

After a moment, Grom's voice was low and serious as he stared at the other person and said, "Do you know what the consequences of your decision will be?"

Quinn naturally understood the stakes involved. He knew very well that if his $200 million high-cost startup failed, he would face a torrent of questioning from within the Major family, and his status as the family's next successor would become uncertain.

Although his faction controls the largest share of the Meijer Group and wields considerable influence within the group, this does not mean that he will undoubtedly become the next leader of the Meijer Group.

The Meijer family also has a dedicated family committee, whose members are all Meijer family shareholders in the Meijer Group.

If the transition is smooth and there are no major mishaps or controversies, he can basically hand over the reins smoothly and become the next leader of the Meijer Group.

However, if he takes these two hundred million dollars to explore entirely new business areas and ultimately fails, then doubts will arise within the family committee, shaking his ability to lead the Meijer Group.

But as Ernst told him at the time, "If you don't want to live this kind of routine, where everything is pre-arranged, then why set your sights on the internet industry?"

"Your family has been deeply involved in the retail industry for many years, possessing a large number of experienced professionals and supply chains. Furthermore, you are very familiar with the operating models and market dynamics of the retail industry. Why not consider building upon this foundation and exploring new possibilities?"

In response to Ernst's question, Quinn expressed his thoughts at the time: "If I still choose the retail industry, what is the essential difference between that and my current routine of working every day? I might as well stay with the Meijer Group and do my job well step by step."

Ernst gently shook his head. "That's different. Entrepreneurship is about the process, not the industry you choose. Wealth created through your own efforts and wisdom is a different concept from wealth directly inherited from your family."

"If you really want to start a business, you could try acquiring those neighborhood convenience stores in the American Midwest. These convenience stores are close to residents' lives, have a stable customer base, and are much more stable than other industries."

"Once you complete the acquisition and integration, you can also cooperate with my flash sale platform. If you need funding, feel free to call me anytime; I'd be happy to provide some funds to support the project's progress."

When Ernst made the suggestion, Quinn was not particularly interested.

However, if the total e-commerce sales in the United States are indeed expected to reach $70 billion this year, or even just $50 billion, he feels that this field has great potential.

The retail industry has always been considered a relatively stable industry with steady market demand, but it also lacks the potential for explosive growth, making it difficult to achieve a large-scale breakthrough in performance in a short period of time.

But now that the market demand and development opportunities are right in front of us, that's a different story. It might be possible to get rich overnight like in other industries.

If Meijer can leverage the momentum of flash sales platforms to successfully integrate community retail resources in the central United States and eventually go public, the resulting surge in assets will not only pave the way for the future development of the Meijer Group but also lay a solid foundation for its large supermarkets to expand into these regions.

By then, he will not only be able to fully demonstrate his abilities and vision and achieve a significant increase in his personal wealth, but all possible obstacles to his influence within the Meijer family and taking over the Meijer Group will also be cleared.

The entire Meijer Group and the Meijer Family Committee will become his personal fiefdom, making him the most powerful head of the Meijer family.

Seeing the hesitation on Grom's face, Quinn knew that the other man would prefer him to choose a safer, less risky path of development.

"I trust Ernst's judgment and ability, and I am confident in the prospects of this project. Even if this venture fails, I can simply return to the group, start from the bottom, and prove myself again."

This statement touched Grom somewhat, because Quinn had joined the group after graduation, and although he went to work every day as usual, his mind was not on the family business.

Quinn longed for the glitz and glamour of the outside world and wanted to make his mark in big cities like New York and Los Angeles.

Although the other party hadn't said it, Grom could tell.

If we support him in trying his first business, ignite his inner ambition, help him rediscover the value and significance of the family business, and change his previous indifferent attitude towards the family business, it might not be a bad thing.

Of course, deep down, Grom hoped that Quinn's venture would be a success, which would bring him both fame and fortune.

He looked at Quinn and said solemnly, "I will give you one hundred million dollars, and the Meijer Group will add another one hundred million dollars. You only have this one chance."

Quinn instantly understood Grom's idea: Meijer Group was being used to help him share the risks of starting a business, while also easing the pressure he was under.

Even if he fails, Grom can take the blame himself and say it was his own decision-making mistake.

He stood up, and before leaving the office, gave Grom a determined look, saying each word clearly, "I will succeed."

Watching Quinn's retreating figure as he pushed open the door, Grom couldn't help but chuckle, shaking his head slightly, but his face was filled with a relieved smile, muttering to himself, "You brat."

Quinn began his own plan, the first step of which was to poach talent from within the Meijer Group to build his own startup team.

Meanwhile, on the East Coast, not far from Michigan, a newly established company, WShop, has begun to promote the integration of retail resources in the community sector.

In a dilapidated office building in Boston, Massim sat in a conference room, listening intently to Cicero's work report.

The Boston consortium still got involved in Ernst's community store consolidation plan.

Besides being more familiar with traditional industries like retail, these established conglomerates also felt more secure because Ernst was willing to invest more capital in the project and take a larger share.

As for Ernst's goal of gaining votes through consolidation of the retail industry, the Boston consortium also had its own clever plan.

For chain community brands with fewer stores and relatively smaller asset size, a direct cash acquisition approach can be adopted to quickly integrate these smaller brands and expand market coverage.

For larger community store companies that are more established and have a certain influence in the regional market, a hybrid acquisition model of cash and stock is adopted.

This approach not only reduces the company's short-term cash pressure but also shares the risks.

More importantly, by selling some of its shares, Ernst's stake in WShop can be reduced to some extent.

For example, ShopRite in New Jersey, a local community supermarket, may not be comparable to international retail giants like Walmart, but it is already considered a large supermarket chain brand in the regional market.

Its operations cover four states on the East Coast, and it has a stable customer base and a well-established supply chain system.

However, unlike Walmart, which focuses on large-scale merchandise sales, ShopRite's main business is concentrated on daily necessities such as baked goods, community fresh produce, and prepared salads.

Another example is Wawa Supermarket in Pennsylvania, which is known for its convenience store and gas station combination model. It has strong community service and localization, with a high density of stores and long operating hours.

Unlike Huaxia's California-style convenience store model, Wawa's stores are larger, more like 711-Eleven and Lawson, and offer a wider variety of products, including homemade items.

The fact that they were able to secure representation from these two regional supermarkets reflects the influence of the Boston Consortium on the East Coast.

It's worth noting that Wawa is a family business, and Ernst never expected to acquire 55% of Wawa's shares through a share swap.

The current WShop board of directors consists of representatives from the offices of Wawa, ShopRite, Massim, and Ernst, as well as the heads of two other regional supermarket chains, plus Cicero, making a total of seven people. He is also the CEO of WShop.

"To date, WShop has successfully expanded its operations to nine states on the East Coast, covering 581 cities. Among these, it has covered more than 100 major cities with a population of over 50,000."

"In densely populated residential areas, we have basically achieved our goal of having a WShop managed store within a 2-kilometer radius."

After listening, Massim's gaze slowly swept over the directors present, finally lingering on the representative sent from the Ernst family office. "We must speed up the planning process; we don't have much time left."

Ernst spoke with him on the phone yesterday, and the flash sale platform will be launched in early September, or at the latest, mid-September.

If WShop fails to expand its business coverage and improve its service network before launching its flash sale platform, then once the flash sale platform successfully gains market recognition, other competitors will definitely apply to join the flash sale platform's cooperation system in areas not yet covered by WShop, vying for market share.

Cicero gave all the directors a reassuring look. "We have added a negotiation team, and I believe that before the flash sale goes live, we will be able to cover all the major cities on the East Coast with WShop."

Massim nodded, then looked at Gallup Wood, the representative of Wawa and now the president of Wawa, from the Wood family.

"What are your thoughts on Ernst's suggestions regarding the central kitchen and central factory?"

In addition to discussing the timing, Ernst also mentioned the concepts of central kitchens and central factories during the phone call.

By establishing a unified central kitchen and central factory, standardized production and large-scale supply of some products can be achieved. This can not only improve the stability of product quality and reduce production costs, but also enhance the operational efficiency and market competitiveness of the entire WShop system.

Take Wawa convenience stores as an example. Their homemade sandwiches are very popular and well-regarded among consumers. If a central kitchen could be established in every state on the East Coast to produce and distribute the product in a unified manner, it would enable large-scale promotion and allow consumers in more regions to enjoy the product.

Similarly, ShopRite's signature baked goods and salads also have similar promotional potential.

There are many similar products. If the promotion is effective, we can also consider establishing a dedicated product R&D laboratory and an independent product brand to continuously innovate.

In response to Massim's question, Gallup Wood said, "I have no objection to the suggestion of setting up a central kitchen and central factory, but we can't just give away our recipes to WShop for free, can we? My suggestion is to set up a separate company to manage the central kitchen and central factory and purchase our product formulas."

Gallup's idea is simple: if this model really takes off, the company can become a food supplier like Pepsi, supplying its products to the world.

The company's market value will naturally rise, and even if it is acquired by WShop, it will still gain more benefits.

ShopRite's representatives also supported this, but Massim did not want to agree because it would harm the interests of the Boston consortium.

He turned his gaze to the man opposite him, Jar Hart, the representative sent by Storm Capital, a subsidiary of the Garfield family office, hoping to gain his support.

Even though WShop gave up a significant number of shares in the acquisition, the combined stake held by the Boston consortium and Wind Capital still exceeds 60%. If Jar Hart supports him, he will have even greater say.

To his surprise, Jal Hart agreed, but with one condition: "Wind Capital's shareholding in the new company cannot be less than 40%."

The entire concept of WShop, central kitchen, and central factory revolves around Ernst's flash sale, which was also his idea. Fengyun Capital naturally has the right to speak on this and gets the biggest slice of the pie.

But Masim's face darkened. He hadn't expected that Fengyun Capital would just eat its fill and then abandon him.

Because in this new company, Boston has the least say.

Funding can be provided by Fengyun Capital.

The formula was provided by shareholders like Wawa, so naturally they deserve a larger share.

The Boston consortium, however, was destined to only get a piece of the pie in this new company, picking up what others left behind.