Taking Stock: Irene’s Effects Can’t Break Industry’s Resolve

Jeff has been reporting, analyzing and opining about the retail grocery business since 1973. He has served as publisher of Food Trade News and Food World since 1978 and as president since 2007. He can be reached at [email protected].

It may not have been as bad as Hurricane Isabel in 2005, but for a sheer water event, Hurricane Irene was bad enough. And for those who live in parts of Virginia, North Carolina, New Jersey and New England, the power of the storm brought horrific flooding.

And once again the industry shone in its preparation and execution of handling the unusual and challenging issues that only a hurricane can bring. Two days prior to Hurricane Irene, I visited 15 stores under the banners of six retailers in Virginia and Maryland and each unit I surveyed was fully prepared for the onslaught. All stores were well stocked and department managers told me they had extra inventory on hand. Of course, no retailer can fully anticipate the urgency/impulse factor of the consumer when he or she is fully committed to buying batteries, bread, bottled water, milk, eggs, toilet paper and other necessities of life.

Other than issues of personal safety or loss of power, most stores remained open even during the most intense periods of wind and rain. And those stores that did not lose power (and thus which were forced to close), were in solid conditions when I checked back on Sunday, the day after the storm.

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So where am I going with this? It’s very easy to forget how good the food distribution system is in this country really is. From a pure blocking and tackling perspective, the efficiency of getting product from farm to table is unbelievably efficient and perceptibly seamless. Yet we all know there’s a lot more to it than sound mechanics. The true differentiator is people from all segments of the business. Manufacturers who made sure enough product was available at the most critical times. Warehouse associates and truck drivers who ensured that distribution and logistics needs would be met before, during and after a weather event as devastating as a hurricane. And of course, the clerks and meatcutters who work in the stores, who toiled tirelessly to make sure the customer enjoyed the best shopping experience they could during the most daunting of times.

The always classy Jeff Martin, executive VP of Ahold USA, summarized it eloquently in a letter to the retailer’s vendors following the storm: “…it took an enormous team effort to keep our stores open to serve customers’ needs and keep everyone safe during the high winds and heavy weather wrought by Irene. From our facilities themselves to the product inside of our stores, you helped us minimize the disruption to our business. We understand the strain on the supply chain, but water and other necessities that were in high demand were delivered to our stores and, in turn, to our customers. We are grateful for your assistance in helping to support our stores and serve our customers. We thank our maintenance teams and their suppliers for helping us address everything from power outages and roof repairs to the continued cleanup on our properties. We are experienced in handling major snowstorms and weather events, but Hurricane Irene touched every part of our operating area, disrupting customers’ lives, store operations, and the supply chain from Virginia to New England. Currently (as of August 30) all of our stores are back open, but many continue with cleanup efforts and, as of Monday (August 29), 75 stores continued to need back-up generation.”

The grocery business is unsung and under appreciated, but when you analyze how well the industry performed in the most difficult of times, it’s easy to recognize how amazing this industry is and how many wonderful people contribute to its greatness.

 This is just part of Taking Stock. To read the rest, subscribe to Food World. Call 410-730-5013.