Safeway Eastern Ready To Let It All Hang Out
I’ve been covering Safeway’s eastern division since 1978. In that time, nearly a dozen division presidents served their three or four year tenures and then were usually scuttled to another Safeway corporate or division post far away from the Baltimore-Washington market.
These were well-meaning leaders with a solid knowledge of the grocery business and a keen understanding of the marketplace to which they were assigned. There were even some exceptional talents – the late Don Smith and Karl Schroeder come to mind – who could have performed even better if they had been allowed to deploy their skills in a less restrictive manner.
But that wasn’t ever going to happen, because process and the most centralized system in the supermarket business would never allow it.
For corporate Safeway, its paint-by-the-numbers cost control strategy usually guaranteed solid earnings and a steady stock price. But, while the industry evolved over the past decade, Safeway didn’t. As new and more diverse competition entered the fray, Safeway maintained its bland, non-aggressive style. As “fresh” marketing became more important, Safeway seemed to be stuck in some sort of time warp, offering little creativity or excitement in its produce, meat, seafood and deli departments.
Even the great Steve Burd, a first team hall of Famer in my book for changing the supermarket industry’s model on how to maximize administrative efficiencies, didn’t care much about merchandising.
Locally, it was even worse. Because of the distance between Pleasanton, CA and Lanham, MD there was a cultural and geographic schism within the organization. There’s always been talent at the eastern division, but when you’re told repeatedly that “you can’t do that” or “you “must do this,” motivation and morale eventually become deflated. I remember one senior level Safeway associate telling me after a particularly difficult day in dealing with Pleasanton, “I feel like I need a hall pass to take a 10 minute bathroom break.”
I have a feeling a year from now those frustrations of the past will be purged like Russian history.
After attending the kickoff vendor meeting led by the new Albertsons influenced Safeway team, I believe a fresh chapter is about to written for a company that has been in the local market for more than 100 years, but hasn’t had a chance to fly by itself for decades.
And while I’ve been critical of Safeway’s smothering corporate style for years, it certainly wasn’t all bad for the division. Of its 127 stores, most are in great locations and, judging by the attitude of the Safeway representatives at the meeting (a blend of veteran Safeway associates and new Albertsons hires), I got the distinct feeling that they are very excited about the company’s future prospects, especially being given the opportunity to more fully demonstrate their talents. And as Jim Perkins, COO of New Albertsons Inc. (NAI), the Cerberus unit that oversees Safeway eastern, Acme, Shaw’s/Star Markets and Jewel-Osco, Safeway is in significantly better shape than Acme was when he was name president of that retailer two years ago.
From a market overview, Safeway is poised to show solid sales gains and increased market share over the next 18 months. And if the Acme revampment can be used as a guidepost, all retailers will feel the pinch of a more aggressive number two player in the market, but none more than market leader Giant Food. More than 90 percent of Safeway’s 127 units compete directly with the Landover unit of Ahold USA, which has its own challenges to deal with. While Giant has recently unveiled a pricing and customer engagement program of its own (“Project Thunder”), it has gained little traction thus far.
In the past five years, Giant has continued to lose share to newer market entries Harris Teeter, Wegmans and Whole Foods, but could always count on Safeway as a virtual non-threat. That will be changing soon.
Most of all, I’m happy for the old guard Safeway associates who have been running on the same treadmill for years.
I’ve witnessed the performance of Jim Perkins in executing the new game plan, and I’m impressed with the desire and work ethic of division president Steve Burnham, VP-marketing and merchandising Tom Lofland and VP-ops Dean Willhite.
As Perkins said to more than 300 vendors earlier this month: “Lay the wood to it. Make it happen. It’s all about sales. Making our margin requirements isn’t our first concern. Let’s sell more product and build market share. We’re going to play offense.”
At Ahold USA, More Questions Than Answers
This isn’t the first editorial I’ve written about Ahold USA, and it certainly won’t be the last. And like previous opinion pieces, much of what I’ve got to write is about company culture.
But first, after analyzing AUSA’s fourth quarter and FY 2014 financial results, there’s no question from a measurable metrics perspective that the company’s 768 supermarkets are trending upwards. Or perhaps better said, the fourth quarter reversed the flat or slightly negative trends of the past year.
However, Ahold USA still needs to perform better. I listened to the post-earnings conference call and heard both Ahold CEO Dick Boer and AUSA COO James McCann offer optimistic views about the chain’s future prospects in the U.S.
Much of their hope centers around the success of the retailer’s customer engagement and price reduction program, “Project Thunder,” and – to be fair – much of the plan still hasn’t been unveiled (Phase 3 of 4 has been recently rolled out), so it’s difficult to measure the level of sales and improvement and market share gains (but the trends are positive) Ahold USA will ultimately achieve, and at what cost.
So, let’s look at some tangible facts: a 0.3 percent identical store sales gain (excluding fuel) is an improvement, but still well below AUSA’s peer group (e.g., Kroger, at the top of the chart, posted a 6 percent ID sales jump – excluding fuel – in its recently released fourth quarter). Additionally, operating income at its U.S. stores dropped from $233 million to $222 million during the busy fourth quarter. That may not be a huge dip (about 4 percent) and the decline most likely can be attributed to investment spending against “Thunder,” but for an earnings-driven retailer that tightly scrutinizes profits, any profit decrease is of concern.
I’m also troubled by Ahold’s self-love of its “own brands.” Now with 37.6 percent of total U.S. store sales in private label (with a goal of 40 percent), I’m not viewing that as good thing. Why? Because other than the “Nature’s Promise” line, I wouldn’t rate the consistency of product quality and overall consumer perception as much above average.
Vendors tells us that the shuffling of dropping and adding private label suppliers is continuing, which makes me wonder how the consumer can get an accurate gauge of qualitative consistency. And, while 40 percent of total sales is certainly achievable, at what cost do you sacrifice funds from branded suppliers (whose items are being replaced by private label products) while also having to internally cover the specific underperforming private label items that consumers aren’t craving?
In a nutshell, AUSA’s own brands penetration may be increasing, but at this point, product quality and consumer perception are nowhere close to being at the same level as the industry’s private label benchmark retailers – Wegmans, Costco and Whole Foods.
However, my biggest concern – the state of culture and morale – is somewhat intangible. But not intangible enough that I can’t decipher the vibe and comments of many associates.
Simply said, there’s a feeling of frustration (or worse) among many of AUSA’s employees.
I see it at the store level in most divisions, where staffing and training are still not up to par. And at least at two divisions (Giant/Landover and Stop & Shop-New England), the consumer’s perception of their shopping experiences (as well as competition) has cost sales and market share, despite having the best locations in their respective markets.
That said, it shouldn’t come as a shock that Joe Kelley is no longer presiding over Stoppie in New England. While Kelley did indeed resign, it seemed like he was only forcing the inevitable. That Kelley and McCann were not perceived to be in recent simpatico would be an understatement.
But here’s a cultural scenario that does involve leadership and ultimately performance.
Mark McGowan is a terrific guy and a real industry talent. He’s made many sacrifices for the good of the company and accepted new challenges without complaint. For example, after Jeff Martin left AUSA, former COO Carl Schlicker asked Mark to step in as EVP-merchandising, despite having limited experience at that desk. Mark worked hard to enhance his relationships with the vendors and executed the company’s merchandising and procurement initiatives like the pro that he is.
When Bhavdeep Singh moved from EVP-store operations to head up new formats, McCann asked Mark to switch from merchandising to ops, his natural position of expertise. That move would be officially made once a replacement for Mark could be found. Eight months later, Mark is still manning the merchandising department.
While the AUSA official news release announcing Kelley’s departure indicated that Don Sussman, the company’s New York Metro president, would be leading its New England division on an interim basis, an intra-company email from McCann indicated that Mark would ultimately be presiding over the 220 store New England unit, but also maintain his job as EVP-operations for AUSA once a replacement can be found for his current job heading up merchandising.
I’ve been writing about the grocery business since 1973 and I have never seen an organizational chart where the store ops overseer of a nearly 800 unit network also presides over the company’s largest division. (An Ahold senior official said, “We believe that this structure has worked well in the past and will work again. However, if this dual structure does not work, then we will simply develop a plan to transition a new division president into this role and go back to having four division presidents while Mark would focus on the EVP of operations role.)
I’ve been very open about my relationship with James McCann. He’s got a 30 pound brain, has a tireless work ethic and a burning passion to succeed. He’s been very candid about the dire urgency to change how Ahold USA goes to market. In the 25 months he’s been at the helm, he’s toiled feverishly to change many aspects of AUSA’s business because he firmly believed that the company was on a path towards extinction. Believe him or not (and popularity aside) there’s no hypocrisy at all. And ultimately he may be right that painful, radical surgery was necessary to bring the patient back to good health.
In the meantime, McCann’s got to focus on the culture. Make the associates feel better about their jobs (refer to the approach of Jim Perkins, who once worked as regional VP for Giant/Landover). That means more than encouraging them to empower themselves as part of “Thunder.” (That same Ahold official noted that AUSA is aware of the importance of upgrading the company’s overall morale and is working diligently to improve associate engagement).
But it’s only McCann himself who can change this perception. It’s his job to create confidence and consensus among the employees, and as such he’s the one who needs to initiate the bonding. That’s part of leadership. If McCann really wants to reshape Ahold USA and bring back the company’s swagger, he must next focus on associate satisfaction.
Nothing is more important.
Wal-Mart Raises Its Minimum Wage To $9 An Hour; Posts Solid Earnings, Improved Comp Store Sales
Now that CEO Doug McMillon has reshuffled his leadership deck, Wal-Mart clearly is ready to make some strategic moves designed to improve its execution, consumer perception and a lengthy period of generally flat U.S. sales.
On February 19, McMillon said Wal-Mart has been developing and testing new ideas to reward associates for serving customers. As part of those initiatives, the home grown chief executive who was named to the top post at the world’s largest retailer a year ago said that approximately 500,000 full-time and part-time associates at Wal-MartU.S. stores and Sam’s Clubs will receive pay raises in the first half of the current fiscal year. Current and future associates will benefit from this initiative, which ensures that Wal-Mart hourly associates earn at least $1.75 above today’s federal minimum wage, or $9.00 per hour, in April. The following year, by February 1, current associates will earn at least $10.00 per hour.
“Today (February 19) we announced comprehensive changes to our hiring, training, compensation and scheduling programs, as well as to our store management structure. These changes will give our U.S. associates the opportunity to earn higher pay and advance in their careers. We’re pursuing a comprehensive approach that is sustainable over the long term,” explained McMillon. “By realigning our store operational structure, associates can enjoy a closer relationship with their supervisors. In addition, associates will have more control over their schedules. The investment in these initiatives is more than $1 billion for this fiscal year.”
According to McMillon, the leadership teams are very focused on improving customer experiences through various investments and program initiatives, and for several months, developed and tested new ideas to reward associates for serving customers.
“We have work to do to grow the business. We know what customers want from a shopping experience, and we’re investing strategically to exceed their expectations and better position Wal-Mart for the future,” said McMillon. “Our first priority is to run great stores and clubs. We will continue to integrate our physical locations with a great e-commerce and mobile commerce business. We’re strengthening investments in our people to engage and inspire them to deliver superior customer experiences. We will earn the trust of all Wal-Mart stakeholders by operating great retail businesses, ensuring world-class compliance, and doing good in the world through social and environmental programs in our communities.”
Additionally, McMillon revealed that Wal-Mart and the Wal-Mart Foundation also committed $100 million over five years to help increase the economic mobility for entry level workers by advancing their careers. This initiative will benefit the retail and service industries. The Wal-Mart Foundation will work with other foundations, employers, community colleges and non-profit organizations to address a fundamental challenge in America — how to better train and advance workers in the retail and adjacent sectors.
“Beyond this commitment, Wal-Mart is also piloting a new, comprehensive on-boarding and training program to create clear career pathways for associates, so they can earn more and seek promotions,” McMillon explained. “We’re encouraging our associates to continue their education by providing no-cost access for them to complete their high school diploma or GED, as well as free and low-cost college credit to reduce the time and cost of earning a college degree. The skills and training that an associate receives through this program will be transferable outside of Wal-Mart.”
Wal-Mart also announced its fourth quarter and fiscal year ended January 30. For the 13-week period comp store sales at its U.S. units increased (excluding fuel) 1.5 percent (compared to negative 0.4 percent last year), reflecting the chain’s 1.4 percent improvement in store traffic -Wal-Mart’s first quarter of positive traffic since the third quarter of fiscal 2013.
In the U.S., profits declined slightly from $6.22 billion in fiscal 2014 to $6.18 billion this year. Overall, Wal-Mart posted net income for the fourth quarter was $16.4 billion, a 12.1 percent increase. Diluted earnings per share from continuing operations attributable to Wal-Mart were $1.53, compared to last year’s $1.34.
“Our fourth quarter was the first positive traffic comp we’ve had since the third quarter of fiscal year 2013,” said Greg Foran, Wal-Mart U.S. president and CEO, whom McMillon promoted last summer. “Wal-Mart U.S. had increased traffic during the six-week holiday season, with strong sales in seasonal, toys, home and apparel. We completed almost 1 billion total transactions during the holiday season, including our largest online day ever on Cyber Monday. We are also pleased to deliver positive comp sales for the full year.”
Foran also noted the strong comp sales of Neighborhood Market stores. “Neighborhood Markets delivered approximately a 7.7 percent comp during the quarter,” he said. “We opened 233 Neighborhood Markets during the year, and customers like their easy and convenient access to fresh foods, pharmacy and services.”
He affirmed Wal-Mart would build 180 to 200 new Neighborhood Market stores this fiscal year, including 10 to 15 of the smaller (Express) unit which are still in the test phase.
Foran also stated that he’s developed an urgent items agenda which included produce rotation to improve fresh presentation which had a positive effect in the quarter, adding “we still have a long way to go to improve our fresh business and we remain focused on that goal.”
As for Sam’s Club, president and CEO Rosalind Brewer noted: “Throughout the year, we’ve seen meaningful acceleration culminating in comp sales, without fuel, of 2.0 percent for the 13-week period, Strong holiday execution, combined with our strategic investments in member value, merchandise relevance and the integration of digital and physical improved our performance.”
Wal-Mart said it expects U.S. comps in the current first quarter to increase between 1 percent and 2 percent.
And if you’re still questioning Wal-Mart’s clout after a few unimpressive years, all you need to know is the Bentonville Behemoth rang up U.S. sales of $288 billion (up 3.1 percent). Globally, revenue increased 2 percent to a whopping $485.7 billion.
‘Round The Trade
And speaking about Wal-Mart, the battle to gain market share in Richmond is heating up. Neighborhood Markets, the fastest growing unit of the planet’s largest retailer, debuted its first two stores – on Hopkins Road in Chesterfield and on Sliding Hill Road in Atlee (Hanover County) in the Old Dominion’s capital city on March 5. Both units are about 41,000 square feet. The Behemoth plans two other new Richmond units later this summer – on Brook Road in Henrico County and in a new development near Iron Bridge Road in Chesterfield County. Also coming in the next few years to an already overstored Richmond market are two Wegmans, at least two Aldis, another Whole Foods, three new Krogers (two Marketplaces) and possibly several Lidl discount units. And at Wal-Mart corporate, a few more executive changes to report. Recently departing was John Aden, who was executive VP-sales innovation. Given more responsibility were Jane Ewing, senior VP-business development for Wal-Mart U.S., who will head the Behemoth’s “Next Generation Stock Up” initiative, and Jeff McAllister, currently senior VP-Wal-Mart Innovations, who will lead the company’s “Next Generation Supply Chain” effort. Moreover, Latriece Watkins, senior VP-snacks and beverages, will oversee the Bentonville, AR retailer’s “Ways of Working” group. Wal-Mart also announced that it is changing some of the rules of its “Savings Catcher” price comparison program, effective this month. Essentially, the world’s largest retailer is removing departments (produce, bakery) from the program, claiming that it is difficult to match “like” items that are often unbranded. It is also eliminating comparisons with drug stores while still allowing comparisons with supermarkets, dollar stores and other mass merchants. “Thanks again for using Savings Catcher and shopping with us. We are dedicated to providing customers like you with Everyday Low Prices. It is a mission we’re proud of and we’ll continue to work hard to deliver to you,” an email from Wal-Mart stated. I’ve utilized Savings Catcher several times, and while Wal-Mart’s effort to consistently pound its low price image in many different way is notable, the truth is, utilizing Savings Catcher involves a fair amount of time and is somewhat confusing to use…Costco, which continues to impress everyone with its tremendous earnings and growth, will make its shareholders very happy in the next few weeks. The nation’s largest club store merchant plans on issuing a one-time special dividend to its holders because of its success. The Issaquah, WA retailer will distribute about $2.2 billion ($5 per share) funded from existing cash and some borrowing. Costco also announced that it will partner with Visa and Citigroup to oversee its co-branded credit card business on April 1, 2016. At that point, Costco will end the long exclusivity arrangement it had with American Express…on the heels of a record quarterly loss ($2.6 billion) which included the announcement to close all 133 Canadian stores in its recently completed fourth quarter, Target and its new chairman and CEO Brian Cornell are turning a new page. The former Safeway and Pepsico executive said that Target is beginning to see momentum in some of its core departments – style, baby and wellness. So where does that leave food? In the post-earnings conference call with the analysts on February 25, Cornell stated: “Food is very important to our guests, and we know food trips drive traffic. We recognize we have a lot of work to do as we begin to build our reinvention plans for food. We recognize we need to make changes to our assortment – to deliver more organic, natural and gluten-free items that are critically important to the guests. We also recognize we have to change the in-store experience and really make sure our grocery merchandising complements the great experience we create at Target. We won’t get there overnight. It will be a multi-year transition. But food is going to play a very important role and complement our other signature categories to make sure we drive traffic to our stores and to our website.” A week later, at an analyst meeting in Manhattan, Cornell again addressed its food plans reiterating its intention to healthier items while also making its ingredient labeling clearer and simpler. “We’ll be more nimble, much more agile. We’re in the very early stages of a shift in our business.” Additionally, in a belt-tightening effort, Target will cut “several thousand” jobs over the next two years in attempt to save $2 billion…it is with sadness that I report that the Oscar Mayer “Wienermobile” has crashed. We all know how the weather in the Northeast has frankly sucked since the first of the year, and one of its victims was Kraft’s giant “hot dog on wheels” (one of several the company owns). Pennsylvania state highway officials said that the 27-foot vehicle was traveling on South Enola Road in Enola, PA (near Harrisburg) on February 15 when it slid of the road and crashed into a pole. No injuries occurred, but the vehicle’s wiener was reportedly damaged. Sounds painful.
Local Notes
Based on recent earnings results, it seems like supermarket retailers are now clearly in the recovery mode as witnessed by the earnings and sales performances of some of the country’s largest merchants. Topping the list again was Kroger, which posted a 22.7 percent profit gain while also increasing its ID sales by an impressive 6 percent. Kroger’s been on a spectacular run over the last five years and, when asked by Ed Kelly of Credit Suisse at the post-earnings conference call why Kroger’s identical stores sales are widening the gap against its competitors, CEO Rodney McMullen, answered the inquiry in a Kroger-esque manner – direct, but humbly: “Ed, it’s a question that actually we’ve spent a little bit of time trying to think through internally, and probably the biggest thing is our associates, our store teams and all the people that support our stores, they continue to do a better job of helping serve our customers on a daily basis. Everything from making sure products are fresher to making sure that we treat our customers right. And we really do believe we had a great foundation in place and our associates really are taking it up to the next level in terms of how they’re taking care of our customers. And we think that that’s the thing that’s really been successful and we really appreciate what our associates are doing.” The other retail merchant that continues to hit it out of the park is Whole Foods. For its 16 week first period (ended January 18), the Austin, TX-based “good for you grocery merchant” saw its profits rise 5.7 percent to $167 million while same-store sales increased 4.5 percent. Overall sales climbed an impressive 10.2 percent to a record $4.7 billion. In his conference call with the analysts, co-CEO Walter Robb attributed WFM’s momentum to “customers’ positive response to many strategic initiatives along with improving consumer confidence.” Specifically, the 24 year Whole Foods vet, who shares the chief executive title with founder John Mackey, noted that the launch of its first national ad campaign – “Values Matter” – has aided the company’s overall perception when measured against its competitors. Robb also praised his company’s partnership with Instacart (online delivery sales currently in 15 cities), its aggressive use of digital technologies (including Apple Pay whose users account for about 2 percent of Whole Foods’ sales) and its willingness to test new ideas, including its new shoppers “Affinity” rewards program, which debuted at a dozen stores in the Delaware Valley last fall and will be expanded to the Washington, DC market this spring. Other initiatives that Robb claims have aided Whole Foods include a new mobile application that has recorded 600,000 downloads and a test of lower produce prices in several markets. During Q1, WFM opened nine new stores and completed 40 remodels. In the first month of Q2, three new stores have already opened with eight other units scheduled to debut. My, my, my, it’s been a tremendous run for both Kroger and Whole Foods…also continuing its recent positive trend was Delhaize, whose U.S. banners (Food Lion and Hannaford) saw their underlying operating profit increase 44.1 percent to $199 million. Underlying operating margin for the quarter was 4.2 percent compared with 3.3 percent in 2013. Excluding the 53rd trading week, underlying operating profit increased 20.7 percent to $166 million. Underlying operating margin increased from 3.3 percent to 3.8 percent mainly due to a higher gross margin helped by a favorable sales mix as well as due to lower selling, general and administrative expenses as a percentage of revenues, the Brussels-based retailer noted. Overall U.S. sales for the quarter totaled $4.7 billion, a 12.1 percent increase. Excluding the effect of a 53rd week in the 2014 year, sales improved by 3.3 percent and comparable-store sales totaled 3.6 percent, supported by retail inflation of 2.6 percent. Frans Muller, CEO of Delhaize, said the chain would continue to expand out its “Easy Fresh and Affordable” strategy to an additional 160 more Food Lion units in 2015, noting the program, with price and service elements designed to increase basket sizes, has driven positive results at 76 stores that have already received the investments. The strategy requires an investment in $1.5 million in each store, The Dutch-born chief executive who joined Delhaize 18 months ago added, “We believe this will favorably position us in an increasingly competitive southeastern U.S. market. While we are focused on maintaining our sales momentum, we are also mindful of non-recurring costs related to Food Lion’s strategic initiative.” In related Delhaize America news, Brad Wise, president of Hannaford and a 30 year veteran of the company, will retire on June 30. He’ll be replaced by his top lieutenant, Mike Vail, who began his career with the Scarborough, ME retailer 29 years ago. One more Delhaize item: former CEO of parent firm Delhaize Group, Pierre-Olivier Beckers, will be leaving the company’s board this May…at Weis Markets, the company’s efforts to build sales and lower retails is working, but at the cost of short-term profits. The Sunbury, PA merchant said its fourth quarter sales increased 4.0 percent to $713.8 million while comp store sales grew by 3.5 percent. During the 13 week period ending December 27, 2014, earnings at the closely-held publicly-traded retailer declined 11.6 percent to $13.9 million. Weis attributed its sales increases to the continuing success of its pricing programs, which were fully implemented in the first quarter. It added that results also benefited from strong sales increases in pharmacy, HBC and its fresh departments. “One year ago, we spoke of our plans to recalibrate our go to market strategies and focus on increasing sales and market share,” said Jonathan Weis, president and CEO. “Over the past year, we steadily invested in our pricing programs and successfully executed our strategy, which has produced consistent sales increases in key center store and fresh departments. These investments helped us increase our market share and our customer count. We also improved our in-store customer experience and increased our customer service focus. As a result of our investments and customer service programs, we are well-positioned to build on our success in 2015.”…Giant Eagle is exiting the “extreme value” discount business, announcing it would close its eight “Good Cents Grocery + More” locations on March 26. “Good Cents,” which began life in 2008 as Valu King, has stores in western PA and northeast OH. About 200 associates will be affected by the closures…in one of its first moves since being acquired by Cerberus/New Albertsons Inc., Safeway’s eastern division is saying sayonara to its Rancher’s Reserve “select” beef brand and replacing it with “choice” beef at all 127 stores in the region. And Safeway’s sister firm, Acme Markets, will cut the ribbon on its rebuilt Chestertown, MD unit on March 13, the first new Acme of the Eastern Shore in more than 15 years…following the acquisition of Grocery Outlet (GO) late last year by private equity firm Hellman & Friedman, the grocery discounter, whose 214 stores are primarily located on the West Coast, announced it will change the name of its 16 Amelia’s stores in the Philadelphia and Central PA market to Grocery Outlets, effective this month. Amelia’s was acquired by GO in 2011. “We’ve taken the last two years to learn Amelia’s unique business model,” an email sent by the company to its shoppers stated.” The good news is that all the things you love about Amelia’s Grocery Outlet – low prices, great customer service, and family-friendly business – is staying the same. We’re giving the stores a new look and feel, to represent their inclusion in the Grocery Outlet family.” Unintentional funny of the month: Kmart announced that its remaining Super K combo stores (the only remaining unit in our market is in Uniontown, PA) will be downsized and become less service oriented (
how much “less” does that mean?). The new format will be renamed K-fresh, despite the fact that service meat, bakery and deli will be eliminated and more pre-packaged items and fewer overall items will reportedly be featured. Sounds like another Kmart winner to me…several obituaries to report this month including actor Leonard Nimoy, a true Renaissance man. In addition to a long acting career that spanned 62 years, the Boston-born Nimoy was also a photographer, poet and musician. Of course, he’ll always be remembered for his signature role as “Mr. Spock” from the iconic TV series “Star Trek” (1966-69). Nimoy made a mini-career out of the role appearing in numerous spinoffs including another newer Star Trek TV show, eight movies, an animated series and video games. Nimoy was 83…from the world of sports, ascending to basketball heaven were the legendary coaches Dean Smith and Jerry Tarkanian. Smith, 83, was one of the greatest coaches in any sport in any era. The iconic University of North Carolina head basketball coach from 1961-1997 had a career winning percentage of .776 that included 879 victories. More than that, Dean Smith was a man of humanity and humility. At the urging of his pastor, he actively recruited black athletes in an era when Southern schools were slow to move toward racial equality. More than 95 percent of Smith’s players graduated and he developed more than 50 NBA players, including the greatest of all time, Michael Jordan. Jerry Tarkanian’s public image was the polar opposite of Smith’s. That wasn’t due to the relationship with his players (who loved and respected him), where he performed similar good deeds. Tarkanian’s problem was with the NCAA which tried to run him out of college basketball for his allegedly questionable recruiting tactics. In the end, the head coach at the University of Nevada Las Vegas won that battle, collecting a $2.5 million settlement from the dictatorship that oversees college sports. Tarkanian, 84, often recruited players from the inner city that other coaches usually wouldn’t touch. He combined an explosive fast-break offense with his self-developed tenacious “amoeba” defense. His 1990 Runnin’ Rebels team, which arguably was the most dominant team of its era, won it all that year. Overall, the towel-chewing Tarkanian amassed 706 victories and a winning percentage of .781…the music industry also suffered some big losses. Lesley Gore, pop singing sensation of my youth, died earlier this month at the age of 68. The native New Yorker burst on the scene in 1963 at the age of 16 with her plaintive “It’s My Party.” Other Gore hits (all released in 1963) included “Judy’s Turn To Cry,” and “You Don’t Own Me.” She was discovered by Quincy Jones, and in the early and mid-1960s, played in live shows that featured such future Rock ‘n Roll Hall of Famers as James Brown and The Rolling Stones. Taking advantage of her huge short-term popularity, the producers of the campy TV series “Batman” cast her as Catwoman’s sidekick. …I was saddened to hear of the death of Bob Simon, long-time “60 Minutes” correspondent and one of the best reporters of his era. Simon was killed in an auto accident in Manhattan on February 11 at the age of 73. During a career at CBS News that spanned 47 years, Simon collected 27 Emmys and four prestigious Peabody Awards. Early in his career, Simon was one of the best war correspondents covering Vietnam in the early 1970s. He was usually given high level but dangerous assignments, including reporting on violence in Northern Ireland and from war zones in the Falkland Islands and Somalia. He was also imprisoned and tortured for 40 days by the Iraqi army during the first Gulf War. Simon was a gritty, intelligent and talented journalist, kind of like the anti-Brian Williams, a handsome, vapid talking head whose fiction skills had been overlooked until recently.