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Jermaine Robinson, MBA, CSCP / Contributor

A Bold Move Into the World’s Toughest Market

When a Jamaican company enters the U.S. retail market, it’s more than just an expansion; it’s a resilience test against the world’s most complex supply chain environment. Derrimon Trading Company Limited (DTL), one of Jamaica’s leading distributors and retailers, took that step in 2021 with its Brooklyn-based entities, Marnock LLC (wholesale) and Marnock Retail LLC (supermarket).

The strategy was ambitious: leverage diaspora loyalty, establish a foothold in New York, and create a platform to introduce Jamaican brands to a global audience. But in March 2024, Derrimon’s operations faced a severe test when a roof collapsed and flood damage shut down both wholesale and retail activities. This was more than a one-time disruption; it exposed deeper weaknesses in supply chain design, financial discipline, and operational resilience.

The Numbers Tell the Story

Derrimon’s 2024 audited financials confirm the pressure. Revenue dropped 18.8 per cent, falling from J$18.74 billion in 2023 to J$15.21 billion in 2024. Gross profit also declined 17.5 per cent to J$3.86 billion. Margins remained steady at 25.36 per cent, reflecting disciplined pricing and product mix, but underneath, liquidity declined.

Receivables surged to J$3.18 billion from J$2.04 billion the previous year, while expected credit losses more than doubled to J$462 million. Net earnings shifted from a J$182 million profit in 2023 to a J$616 million loss in 2024. Rising finance costs hit J$766 million, nearly 20 per cent of gross profit, exerting pressure. In short, Derrimon protected margins but lost control of cash flow, a risky situation for any company expanding abroad.

The Supply Chain Lens: Resilience or Fragility?

1. Network Design

Derrimon combined both wholesale and retail operations into one Brooklyn location. This improved efficiency, but when the site went offline, all revenue streams stopped at once. Inventory dropped from J$5.09 billion in 2023 to J$4.18 billion in 2024, showing the impact of the disruption.

Supply chain leaders see redundancy not as waste but as protection. A low-cost 3PL cross-dock or micro-fulfilment centre elsewhere in the New York metro area could have kept diaspora grocers supplied during the shutdown. Global giants like Amazon and Walmart depend on multi-node redundancy for this very reason. For Derrimon, the lesson is clear: efficiency without diversification leads to fragility.

2. Cash Discipline

While pricing discipline held, cash discipline weakened. Receivables increased to over J$1.1 billion, and credit losses doubled, indicating looser terms or weaker customer quality. In financial supply chain terms, receivables are “inventory in disguise.” The longer payments are delayed, the more working capital is tied up, forcing reliance on short-term borrowing.

Derrimon’s current liabilities increased to J$6.05 billion, up from J$4.46 billion in 2023. The current portions of long-term loans reached J$1.61 billion. Despite slight operational improvements, operating cash flow remained negative at J$202 million. The key point is: by collecting payments just 15 to 20 days faster, Derrimon could unlock about J$600 million in cash within six months. This liquidity would provide the breathing room needed to ease debt pressure and stabilise operations. In the U.S. market, cash flow is not just back-office housekeeping; it is survival.

3. Brand Power

Rebranding the supermarket as Sampars New York was a smart cultural move. The name strongly connects with diaspora shoppers, giving Derrimon instant recognition in a crowded market.

But brand power only translates into loyalty if execution is flawless. The inventory reduction to J$4.18 billion indicates lean assortments, but lean shouldn’t mean scarce. To attract repeat customers, Derrimon needs to maintain on-shelf availability above 96 per cent, implement rapid replenishment, and focus on high-turnover staples.

A Key Value Item (KVI) strategy built around 50 core diaspora products, priced competitively, would restore trust at the shelf. Pairing that with own-label penetration and end-cap partnerships with Jamaican brands can protect margins and strengthen differentiation. Recognition may open the door, but supply chain execution determines whether shoppers return.

The Roadmap to Resilience

Resilience starts at home. IDB Invest’s US$13 million financing package is aimed at Jamaica, not New York, and that is where Derrimon must rebuild its backbone. Investments in warehouse modernisation, solar-powered operations, and a US$5 million revolving import line will lower costs and stabilise exports, creating the foundation needed to serve the diaspora market abroad.

From there, Derrimon must:

• Diversify its U.S. footprint with a secondary 3PL cross-dock
• Tighten receivables management to free up liquidity
• Execute a KVI-led pricing strategy flawlessly in Brooklyn

These are not optional tweaks; they are survival strategies. Only by addressing them head-on can Derrimon turn diaspora demand into scalable, profitable growth.

Bottom Line

Derrimon’s U.S. expansion is both a cautionary tale and a playbook. The diaspora market is real, and the Sampars brand has cultural weight, but recognition alone is not enough. Sustainable growth requires resilient networks, disciplined cash management, and consistent execution.

The central question is not whether New York wants Jamaican brands; the demand is clear. The real question is whether Derrimon can build a supply chain strong enough to deliver them, reliably and profitably, every time.

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Contributor Bio

Jermaine Robinson, MBA, CSCP, is a supply chain strategist and thought leader specialising in compliance, resilience, and performance improvement. He assists exporters, manufacturers, and logistics providers in strengthening their supply chains. His insights emphasise building resilient networks, incorporating financial discipline, and aligning operations with sustainable growth strategies. Connect with him on LinkedIn at www.linkedin.com/in/jermainearobinson or at JermaineRobinson.com.