Taking Stock

 C&S Makes First Major Changes As It Seeks Greater Efficiencies From AWI/White Rose Deal

When C&S Wholesale Grocers acquired bankrupt wholesalers AWI and White Rose last November for $288 million, you knew it wouldn’t take too long before the largest and one of the most successful distributors in the entire grocery industry would begin seeking efficiencies from the deal. That time has arrived.

Earlier this month, the Keene, NH-based voluntary wholesaler announced that it will close three former White Rose facilities based in Carteret, NJ and Avenel, NJ.

C&S detailed those changes in a letter to its independent customers who were serviced from those grocery, frozen and dairy facilities.

“As you know, we have been evaluating the finances associated with the grocery, dairy, and frozen warehouse facilities operated in New Jersey by C&S subsidiaries Port Carteret Drive Logistics LLC, Middlesex Avenue Logistics LLC, Middlesex Avenue Haulage LLC, Blair Road Logistics LLC, and Blair Road Haulage LLC. Our analysis showed that the customers serviced from these facilities might be serviced more efficiently from other locations in the C&S network. We met with the unions representing the employees in the New Jersey facilities to share this analysis and to seek any insights or proposals they had. That process has now concluded, and we have decided that the grocery, dairy and frozen warehouse facilities in Carteret, NJ will be permanently closed. The closure date is anticipated to be between July 12 and July 25.”

Following the closure of the New Jersey facilities, C&S will begin shipping to former White Rose customers from existing C&S facilities in Bethlehem, PA (grocery), Chester, NY (dairy) and Westfield, MA (frozen). All three are non-union warehouses.

The letter added: “By utilizing these shipping locations, we will be able to make thousands of new items available to you and your customers.”

Additionally, C&S’ entire customer service team (about 45 people), which was also based at the White Rose complex in Carteret, will be relocating to C&S offices in Edison, NJ. The warehouse closing will affect approximately 525 employees represented by Teamster Locals 97, 641, 863 and 810.

This is not the first time that C&S has shifted distribution from unionized northern New Jersey warehouses it controlled to non-union facilities in Pennsylvania. In 2011, after A&P entered Chapter 11 bankruptcy and was seeking concessions from both labor unions and suppliers, the privately-held wholesaler closed its primary facility, also in AvenelNJ, and five other smaller distribution centers that served A&P and Pathmark and moved much of that business to other non-organized depots it operated in Pennsylvania. Ironically, that Avenel DC now serves as Amazon Fresh’s main warehouse serving Metro New York.

At this point, AWI’s primary warehouse in Robesonia, PA is not affected by these moves. However, C&S did make some personnel changes early this month at its Central PA offices.

We’re told that approximately 60 employees were told they would be laid off in the near future, another move designed to create greater efficiency and improve overall productivity. Several sources told us the changes were spread over the entire Robesonia staff – buyers, several category managers, clerical associates and even warehouse maintenance workers. Among those who will be leaving is Bill Donovan, the veteran grocery executive who joined AWI in 2005 and most recently served C&S as VP-sales and account management.

My guess is that the headquarters count reduction in Robesonia probably precludes other changes there as well. Why would C&S, the master of efficiency, elect to keep its non-modern unionized DC in Robesonia (and a smaller HBC/GM depot in York) open in the long-term when it already has eight other non-union warehouses in the KeystoneState?

And when analyzing the business from last June (when AWI declared bankruptcy), there has been some customer attrition leading to revenue reduction from the Robesonia warehouse. The bankruptcy certainly played a key role in that reduction, both financially and emotionally. Reportedly there was about $80 million in shareholder equity lost for the independent retailers who were members of the co-op. Some retailers closed their businesses, and others moved to other wholesalers, even before C&S acquired the AWI/White Rose business at auction.

Since then, C&S’ customer retention rate has been good, but competing wholesalers Bozzuto’s, Supervalu and AWI have picked up new accounts and even existing customers have increased their cross-buying from other specialty distributors (produce, HBC/GM, etc.), something that was more restricted and frowned upon when the company operated as a co-op and was owned by the independent members.

However, you can be certain of one thing: C&S will run all of its newly acquired businesses (including Piggly Wiggly-Carolina and Grocers Supply in Texas) in a way that produces the greatest efficiency.

CEO Rick Cohen (he of the 30 pound brain) is arguably the smartest guy in the grocery business and now that the first major changes have been announced, expect further tweakings in the near future. These are tough decisions, but they’re the kind of decisions that have helped make C&S the largest wholesale grocer in the country.

Timing, Synergies Are Right For Potential Ahold-Delhaize Deal To Be Completed 

Nobody should be surprised to hear that Ahold and The Delhaize Group are in preliminary talks to merge their large retail food empires. The two European merchants first visited their own chat room in 2006, when we’re told that egos and the ability to establish a fair value for the deal killed talks. Several sources have told us that the two large supermarket retailers have had several more top level conversations over the years.

Nine years ago, both companies were doing well by themselves, with Delhaize dominating the supermarket business in its native Belgium and Ahold holding more than an 80 percent share of the Dutch market. At that time, both companies were also producing better results in the United States, which accounts for approximately 60 percent of each retailer’s business.

Fast forward to 2015. While Delhaize America has shown improved results over the past 18 months, the company went through some challenging times in the five years prior to its recent rebranding. While several management changes in the U.S., store closures and sales to other retailers as well as its new rebranding program have produced slightly better results at its large Food Lion unit, not many trade observers believe that there’s enough ammunition in the Food Lion arsenal to make the once vaunted discounter a formidable player again. However, the company’s Hannaford unit remains very solid.

At Ahold USA, the view also has changed substantially since 2006. Flush with cash, great locations and a superior corporate chemistry, Ahold USA was viewed as the retailer poised to grow substantially, both organically and via acquisition. Something happened on that journey that stalled that potential growth effort. When Ahold USA decided to consolidate and centralize its corporate headquarters to Carlisle, PA, it lost some of that chemistry. And while “centralization” certainly reduced duplication and redundancy, it also cost the company much of its mojo, both with its corporate staff and ultimately its customers.

As we know, the Europeans love process. While process is necessary, in the grocery business it really pales to the importance of people and culture. A regime change at the top of AUSA in early 2013 has led to even more European-influenced process. And except for its Giant/Carlisle division, the other three AUSA units have produced flat or negative ID sales for much of the past 24 months.

The landscape has also changed significantly in the U.S. over the past nine years. Channel blurring is now a reality and the challenges to produce real same store sales growth are many (except if your name is Kroger, Whole Foods or Publix). Perhaps a more telling tale of Ahold’s changing persona could be seen when Harris Teeter announced it would sell in 2012. Ahold didn’t even make a bid for the North Carolina regional chain when most analysts viewed the upscale merchant as an ideal fit for Ahold (adjacency, consumer demographics and consistently positive sales and earnings growth). When Kroger ultimately acquired Harris Teeter, one financial analyst told me: “Ahold would have gobbled that up five years ago.”

In fact, in the M&A world, Ahold is not even viewed as a player today. As industry consolidation continues, it seems that Kroger and a limited assortment of private equity firms are the only entities interested in supermarket acquisition.

In Europe the story isn’t that much different. New and more aggressive competition has impacted the still large (but not quite as dominant) market shares of Ahold and Delhaize in their respective homelands (in fact, Ahold has expanded into Belgium in the last three years and has impacted Delhaize’s share).

At the end of the day, this potential deal would be driven primarily by the European mindset of both companies. The Belgian families that control a healthy portion of Delhaize shares appear more open than ever to selling their stake. And, both in Europe and in the U.S., the chances of Delhaize ever regaining the glory days of the past seem remote. For Ahold, a merger would be a crowning achievement for management while also deflecting some of the criticism it’s received in the past few years for under performance.

By almost any measure, Ahold would be the controlling company if such a union were to occur. The Zaandam-based retailer is about 40 percent larger than its Brussels-based rival. In the U.S., Ahold’s annual revenue is about $27 billion, compared to Delhaize’s $17.8 billion in annual sales, despite Delhaize operating nearly twice as many stores as Ahold.

Ahold USA also holds “on paper” advantages over Delhaize America when comparing quality of store locations, condition of physical plants (Food Lion, not Hannaford) and a more advanced online presence.

From a regulatory perspective, the deal would be relatively clean. Outside the United States, Delhaize also operates stores in Luxembourg, Greece, Serbia and Romania while Ahold also owns supermarkets in the Czech Republic as well as a few stores in Germany and in the aforementioned Belgium (which might be viewed as a minor conflict).

In the U.S., there certainly would be Food Lion overlap in the Baltimore-Washington market with Giant/Landover (would Ahold consider selling its struggling and unionized Baltimore-Washington chain if a deal with Delhaize is finalized?). There would also be significant conflict in Richmond with Martin’s (Giant/Carlisle) and Food Lion ranking one and two in the market. Since Stop & Shop pulled out of Northern New England two years ago, there would be about 30 Hannaford stores conflicting with Stoppie units in Massachusetts and in the HudsonValley region of New York.

And then the bigger question in the U.S. becomes: what to do with Food Lion? Not only doesn’t the banner really fit with the other merchandising styles of the other Ahold or Delhaize banners, its future, in my opinion, is very much in doubt, despite recent improvements. Other than convenience, is there a compelling reason to shop at a Food Lion store? It may no longer be squarely in the middle of the road, but it occupies enough of the highway that I still consider the chain prime roadkill material (and that’s before Lidl opens, Wal-Mart expands its Neighborhood Market format and Aldi adds more stores).

From a shareholders perspective (mostly institutional investors), the deal sounds great, if only to produce greater efficiencies and increased buying power (which would also likely drive the stock price up).

However, I’m not as optimistic that this potential coupling would improve the customer proposition for either company, whose images in recent years have both been mediocre.

If indeed there is to be a marriage, it’s going to take several months to distill. In the very early stages of discussions, I like the chances of a deal occurring this time. And if I were a betting man, I’d place the odds at 75-25 of it becoming a reality.

Weis Sets Cap-Ex At $92 Million; Posts Solid Comp Sales, Hires Gunn To Head Merchandising 

Weis Markets chairman and CEO Jonathan H. Weis announced his company’s plans to invest $92 million in the growth and upgrade of its store base, information technology systems and supply chain.

At the company’s annual shareholders meeting April 23, Weis said, “We continue to invest in the upgrade of our store base and information technology infrastructure. In 2015, we plan to invest approximately $92 million in our growth and currently have twelve store projects under way and another 23 in active planning stages. We have also begun work on a major expansion of our distribution center, which will allow us to improve efficiencies and increase our fresh department variety. In recent years, we have steadily upgraded our supply chain which has helped us drive costs out of the system while maintaining our in-stock conditions.”

Weis said the retailer opened two new stores in 2014. It also completed 16 remodels and three gas stations.

At the meeting which was held at the regional chain’s headquarters in Sunbury, PA, Weis also updated shareholders on the company’s successful go-to-market strategies: “As part of our effort to continue our sales momentum in 2015, we reinforced our pricing image through our lowest price guarantee program – which offers a market low price on four weekly items and our longer term Every Day Lower Price program on nearly 2,000 everyday items.”

Weis also spoke of his company’s efforts to upgrade the in-store customer experience. “Over the past year, we have dedicated ourselves to providing standout customer service. Today, we compete against channels of trade that are indifferent to the concept or are online and devoid of any real human connection. We strongly believe in reaching out to customers – and looking for ways to serve them. This will help us build long term relationships that benefit our business.”

Weis reviewed the company’s online shopping service with curbside pick-up, which is now available in 26 stores and will increase to 31 locations by summer.

“We offer on-line shopping with personal shoppers that helps us to replicate the in-store experience in terms of quality and service,” said Weis. “This is a segment of our business that has enormous potential in the years ahead.”

About a week later, Weis Markets released its first quarter earnings and sales. For the period ended March 28, Weis posted a 3.7 percent increase in overall revenue while comparable store sales (excluding fuel) increased 4.7 percent. During the 13-week period, Weis’ sales totaled $712.4 million. During the same period, the retailer’s net income totaled $13.1 million, down 11.2 percent while earnings per share totaled $0.49 compared to $0.55 per share in 2014.

“We continue to make long-term investments in growing our sales and are encouraged by our results,” said Weis. “Our first quarter sales increase was the result of improved everyday pricing, disciplined promotions and an improved in-store experience. This combination produced a strong increase in customer count and continued market share growth.”

And just prior to presstime, we learned that the company has added a key new executive to its leadership team. Richard Gunn has been named senior VP-merchandising and marketing where he will oversee the company’s fresh and center store merchandising, sales and procurement, marketing and advertising.

Gunn has more than 30 years of food retail experience. Prior to joining Weis Markets, he was executive VP-merchandising and marketing at K-VA-T Food Stores (FoodCity) which operates stores in Virginia, Kentucky and Tennessee. Earlier in his career, he worked in various store and regional positions before moving into marketing and merchandising positions where he held increasingly senior positions. He will report to COO Kurt Schertle. Schertle had been looking to fill the top merchandising post for quite some time. With David Gose coming aboard last year (from Wal-Mart), to oversee store ops, Weis has filled two of the most important positions in the organization as both Jonathan Weis and Schertle continue to improve the talent roster. Several brokers and suppliers have chimed in about Gunn, whom they called on at Food City, noting that he’s tough, but fair with the vendors.

“He’s very organized and knows the business like the back of his hand,” said one DSD supplier. “He’ll be looking to reduce costs and gain efficiencies in all areas of his job. Those who call on him should come prepared.”

Acme Vendor Meeting Highlights Emphasis On ‘Local,’ Sales Growth, Associate Empowerment 

Acme held its annual vendor meeting last month at its corporate offices in Malvern, PA and the message was similar to those of the past two years, when parent firm Albertsons acquired the retailer from Supervalu in March 2013. This time, however, there was a new cast of executives to supervise the meeting. Dan Croce, who replaced Jim Perkins as president (Perkins was promoted to executive VP of parent firm New Albertsons, Inc. in March) supervised the meeting along with cohorts Kim Gray, VP-merchandising and marketing, and Sherry Caldwell, director of marketing.

Croce said his team is driven by Acme’s goal of becoming the “favorite local supermarket” in its trading area, which includes the Delaware Valley, the Jersey Shore and northern Maryland. In fact, the importance of “local” has become a key component in Acme’s resurgence, including an emphasis on local products (e.g., Lancaster brand beef) and the utilization of local buying decisions and the expansion of regional items. Within that framework, the youthful division president continued Acme’s mantra of offering lower prices, cleaner stores, superior service, better sale prices, quality products and enhancing community and vendor partnerships. And he outlined the 107 store regional chain’s biggest priority: “Sales, sales, sales.”

Croce also emphasized the importance of company culture (which until 2013 had become disconnected and apathetic), listing several key components which would create a motivated workforce. Those include “one team/one vision,” passion, energy, heart, innovation, partnership, competitive spirit, teamwork, servant leadership, a “win-win” attitude and an entrepreneurial mindset. “Go fast, drive sales, have a passion to win, compete every day, aim to be the best in ‘fresh’ and go big,” Croce told the suppliers and brokers.

In assessing its vendor scorecard, Croce noted that of its top 60 suppliers, 50 had overall positive increases with Acme over the past year; 32 had increases of more than five percent; 15 sales organizations achieved double digit increases; eight had gains of more than 15 percent; and six vendors achieved more than a 20 percent increase in their business. The New Jersey native also outlined Acme’s “MyMixx” online platform which now features personalized offers, digital coupons, online weekly ads, individualized shopping lists and electronic receipts. He also pointed out Acme’s increased social media presence on Facebook, Twitter, Pinterest and Instagram.

Gray briefed the vendors on parent company Albertsons’ national programs and local partnership opportunities (Philadelphia Eagles, Philadelphia Union and Dover International Speedway) and asked the vendors to get fully behind Acme’s newest store opening on Long Beach Island, NJ, which will have its ribbon cutting on May 22. Caldwell reviewed the importance of Acme’s commitment to local trade associations and educational endeavors, including the Academy of Food Marketing at Saint Joseph’s University’s Citation Dinner on October 23 and MAFTO’s signature gala honoring Jim Perkins on November 13 and 14.

In all, it was another open, accessible and informative meeting, which has become the recent standard at the “new” Acme Markets.

And much like it happened two years ago at Acme, sister firm Safeway (eastern division) began shaping its new “local” image. On May 6, it launched the first phase of what promises to be a major initiative when it broke with its new ad format. “Fresher, crispier, juicier, leaner, quicker, healthier, yummier, happy and friendly” was the message Safeway conveyed to its customers in the new ad design which also featured sharper pricing (including $10 off with a $50 purchase), a sleeker design and easier readability. For the past several months, Safeway’s eastern division has been cleaning up its stores, working hard to improve associate morale and has actually hired more clerks and meatcutters in its stores (adding more labor at its stores – that’s almost a revolutionary idea today).

Since Albertsons/Cerberus acquired the big chain in late January, Safeway has been working fervently to become a much more decentralized organization, making local buying decisions and increasing the empowerment of its associates. There’s still more heavy lifting to do, but division president Steve Burnham and his boss Perkins (who’s very familiar with the B-W market from his days at Giant/Landover), have done yeoman’s work in a short period of time to improve the culture at the once semi-inert division.

‘Round The Trade

Whole Foods next year will launch a new format that the company said will offer value pricing and a more standardized natural and organic product assortment (think Millennials and Gen-Yers). Co-CEO Walter Robb said that the new format will be “unlike anything that currently exists in the marketplace.” He added that Whole Foods has begun seeking sites and has organized a team to focus exclusively on the new concept. At the conference call to discuss the Austin, TX-based retailer’s second quarter earnings (profit increased 11.3 percent and comp sales rose 3.7 percent), founder and co-CEO John Mackey stated that by developing a second format, WFM can broaden the accessibility to fresh healthy foods by marketing itself to a more value-conscious customer. Personally, I think the strategy is risky. How many other grocery retailers have been truly successful using multiple formats? It’s going to take a significant effort to develop the new concept from a capital, training, site selection and marketing perspective, and Whole Foods doesn’t have nearly as deep a bench as Wal-Mart or Kroger. More details should be revealed by Labor Day. Incidentally, the new format does not yet have a name, leading our readers to offer their suggestions such as “Half Paycheck,” “Wholer Foods” and “Half Foods.”…another solid quarter for Supervalu with sales increasing 10.4 percent in its fourth quarter ended February 28. For the 13-week quarter (one more week than fiscal 2014), the Eden Prairie, MN wholesaler/retailer reported net earnings of $36 million – $66 million when adjusted for refinancing and other related charges. Save-A-Lot was the best individual performer among SVU’s divisions, posting a sales increase of 13.7 percent to $1.1 billion, with comparable store sales increasing 3.5 percent. Even SVU’s struggling retail food division – Shoppers Food & Pharmacy, Farm Fresh, Shop ‘n Save, Cub and Hornbacher’s – experienced sales growth. At its independent retail sales unit (wholesale), sales dropped marginally (when taking the 53 week year into consideration). For the entire fiscal year overall sales were $17.8 billion. “We finished the year with a strong quarter, highlighted by positive identical store sales at both Save-A-Lot and retail food as well as the transition of the first stores in our important new relationship with Haggen,” Supervalu president and CEO Sam Duncan said in a statement. “Overall, fiscal 2015 was a year of strategic investment in all three of our business segments and I’m pleased with how these investments have positioned us for growth in fiscal 2016.” Duncan would certainly get my vote as an industry all-star for the stellar work he’s done at turning around virtually every aspect of the once beleaguered firm. According to an April 16 SEC filing, Supervalu agreed to wind down services to two Albertsons related divisions (Albertsons LLC and New Albertsons Inc.). In exchange for these transition and wind down services, the SVU will receive eight payments of $6.25 million every six months for aggregate fees of $50 million. These payments are separate from and incremental to the fixed and variable fees Supervalu receives under the TSA. The parties agreed that these transition and wind down services would be provided by SVU in an orderly manner and timeline as reasonably determined by NAI, Albertson’s LLC and SVU. The parties also agreed to negotiate in good faith if either the costs associated with the transition and wind down services are materially higher (i.e., 5 percent or more) than anticipated by Supervalu or the wholesaler is not performing in all material respects the transition and wind down services as needed to support NAI’s and Albertson’s LLC’s transition and wind down activities. The original TSA agreement was to expire in September, but was renewed last year. Now, those backroom services will end in 2016…Wal-Mart continues to shuffle parts of its leadership team under CEO Doug McMillon. Among the key changes are the naming of Mike Moore as executive VP of the company’s SuperCenter unit and the promotion of Julie Murphy, who now assumes Moore’s old post as executive VP of Neighborhood Markets. The Bentonville, AR merchant has also eliminated the EVP titles for Wal-Mart east, Wal-Mart west and Wal-Mart Realty. Also being eliminated is the title of zone manager for the chain’s 4,500 U.S. stores, a move designed to reduce process and create more associate empowerment. Now, if the Behemoth could only significantly improve its out-of-stock issue, customers might actually better notice the benefits of these recent changes. In other Wal-Mart news, the world’s largest retailer abruptly closed five stores last month (two in Texas and one each in Oklahoma, California and Florida) due to what it termed severe plumbing issues. The company said that repairing the problems would take 4-6 months to complete. However, some critics are skeptical, blaming the closures on an effort to penalize activist associates at those stores. To that end, a complaint was filed in late April with the National Labor Relations Board (NLRB) alleging the closures are a retaliatory move meant to punish workers for demanding better pay and conditions. A Wal-Mart spokesman reportedly told several media outlets that the lost jobs were not layoffs, and that rather than being recalled, employees would have to reapply as new applicants when the stores reopen. The NLRB complaint, filed by the United Food and Commercial Workers International union, asked for an injunction forcing Wal-Mart to reinstate the 2,200 workers displaced by the closures. Wal-Mart also announced that it will test unlimited free shipping this summer to enhance its online business. As the big merchant recognizes the threat that Amazon poses to its business (and to all other retailers, too) its new offering will cost half as much as Amazon Prime service (Wal-Mart’s service will cost $50 a year; Prime’s annual fee is $99) and promises product delivery in three days or less (Prime promises to deliver in two days or less). In related local online merchant news, Peapod (a unit of Ahold USA) announced that it would expand its grocery delivery service to all five boroughs in the city of New York. That means it will compete directly with Fresh Direct as the only Internet-driven retailers that cover all of New York City. Others vying for a share of NYC’s growing online business (but not yet in all five boroughs) include Instacart, Delivery.com and the 800 pound online retail gorilla, Amazon, which entered Brooklyn and Manhattan with its Amazon Fresh unit late last year and has recently expanded its business to parts of Northern New Jersey. Amazon Fresh acquired the old Pathmark warehouse in Avenel, NJ in 2013…a clarification from my piece last month about the stellar 69-year career of Robert Weis, recently retired chairman of Weis Markets. While I gave former CEO Dave Hepfinger credit for two strong years of producing stellar sales and profits at Weis, it should be noted that four years of his tenure produced excellent earnings, even if same store sales declined during the final two years of his reign…several published reports indicate that billionaire C. Dean Metropoulos and his private equity partner, Apollo Global Management, are attempting to sell the snack cake product line they acquired in 2013 as a part of the now defunct Hostess liquidation. Included in that portfolio is the iconic Twinkies brand. Word on the street claims that Metropoulos is seeking $2 billion for a portion of Hostess that his company paid $410 million for (annual sales are estimated to be $650 million). On a personal note, I hope Twinkie lovers don’t have to go through another summer without their favorite snack food. However, I learned my lesson from last time. I have been hoarding Twinkies for the past year and, considering the product shelf life is at least 20 years (don’t ask me about carbon footprints), I think I’ll be OK if there are future shortages.

Local Notes 

I’m not surprised that Wegmans landed one of the hottest new locations in NYC with its deal to build a new store at the site of the old Brooklyn Navy Yard. That development project has been kicked around since nearly the beginning of the millennium and, at one time, it appeared it was going to go to Glass Garden ShopRite. Lots of politics have intervened over the years, but a combination of the community allure of Wegmans and the Rochester, NY-based “uber chain’s” own ambition to enter more urban locales (it is also vying for a site at the old Walter Reed Hospital in Washington, DC which will be developed in the next few years) proved to be a winning hand. And if I worked at Whole Foods and particularly Fairway Market, I’d be working to defend my Gowanus and Red Hook stores fiercely, ‘cause there’s gonna be some blood lettin’ when the Wegmans unit opens in about 30 months…some news about Ahold USA’s “new format” unit which was formed in 2013 and is headed by veteran AUSA executive Bhavdeep Singh. After opening up an experimental 3,000 square foot “lab” store on Walnut Street in Center City Philadelphia called Everything Fresh late last year, it appears that the experiment will go live later this summer when the new division cuts the ribbon on a larger store in the west Boston neighborhood of Allston…D’Agostino’s, Stop & Shop and King Kullen have all recently signed new labor deals with UFCW Local 1500. The latter two agreements run through December 2017 (the original contracts for both retailers expired in December 2014) and cover 8,500 store associates collectively. “Both negotiating committees did an excellent job. The agreements provide wage increases for all our members, full-time and part-time,” said Local 1500 president Bruce Both. At D’Agostino’s 13 units in Manhattan (the company operates another stores in Rye Brook, NY), approximately 1,000 store associates unanimously ratified a new three-year contract, also with UFCW Workers Local 1500, earlier this month. The new deal replaces a previous contract that expired more than a year ago. Since then the union and company have been on monthly contract extensions. The agreement will provide five raises over the next three years. “I’m very proud of this new contract,” said D’Agostino’s negotiating committee member Jasmine Dalton. “We got the raises that we deserve, maintained our benefits and increased the guaranteed hours for more part-time workers. It’s a win”…in news from adjacent or nearby markets, Mars Super Markets has now officially closed the four Baltimore area stores it announced it would shutter early this year. The Rosedale, MD-based independent closed its Bel Air, MD store in February, its Aberdeen, MD unit in March and earlier this month pulled the plug on supermarkets in Riviera Beach and on North Rolling Road in Baltimore County. Additionally, Seasons, a Lawrence, Long Island-based kosher merchant has expansion in its mind and will open its first out of market unit in Baltimore later this year or early in 2016. Seasons plans to open a 20,000 square foot store according to Mayer Gold, president of the company, which currently operates single kosher stores in Queens, Manhattan, Scarsdale and Lawrence. The company is also building another new store in Lakewood, NJ which should open later in 2016…in Richmond, Aldi debuted its first two of what will be at least six discount stores in that market. New Aldi units opened last month on North Parham Road (HenricoCounty) and on Charles H. Dimmock Parkway in Colonial Heights (ChesterfieldCounty). Other Aldi units are slated to open in: Staples Mill Shopping Center (Henrico); Hanover Village Shopping Center (Hanover County); Myers Street, near Boulevard (City of Richmond); 7300 Forest Hills Road (City of Richmond); and at the junction of Robious Road and Mall Drive in Chesterfield County. With Wal-Mart opening two Neighborhood Markets in March, the discount presence in Richmond has increased substantially. The upscale demographic will also be served with new stores in the next two years as Kroger has three new stores planned (two Marketplaces and a conventional unit); Wegmans will enter the already overcrowded market with two new units and Whole Foods will add a second store on Broad Street…and good news for our buddy Bobby Ukrop, whose company Ukrop’s Homestyle Foods (UHF) has announced that its “Good Meadows Homemades” baked goods line can now be found in 29 Virginia Kroger units. Kroger stores in the Richmond, Virginia Beach and Charlottesville will carry 22 of UHF’s freshly baked, locally produced items. It’s been five years since Ukrop’s sold its business to Ahold USA (can you believe it) and reinvented itself as UHF, which employs more than 440 associates from its headquarters in Richmond…there are two obits to report this month, including former Oakland Raider fullback Marv Hubbard, who passed away earlier this month at the age of 68. Hubbard, an undrafted free agent from Colgate (same college as our associate Kevin Gallagher, who also played football), was a straight-ahead tough runner and fierce blocker for the great Raider teams of the early 1970s coached by John Madden. During his eight year career, Hubbard rushed for 4,544 yards, caught 85 passes and scored 24 touchdowns. He was also named to three Pro Bowl teams. Entering the musical pearly gates was singer Ben E. King, who gained eternal fame by co-writing (with Jerry Leiber and Mike Stoller) and singing one of the classic songs of the past 60 years, “Stand By Me,” in 1962. King first gained acclaim by singing lead with the Drifters, whose hits included “There Goes My Baby,” “Save The Last Dance For Me” and “This Magic Moment.” He left the Drifters in 1960 to perform as a solo artist and shortly after hit pay dirt with “Spanish Harlem,” which was co-written by Phil Specter. That was followed by the song that music publisher BMI said was the fourth most played tune of the 20th, century. King was 76. And, just before presstime, we learned of the passing of legendary blues singer B.B. King. King was arguably the most important blues singer of all time, helping bridge the gap between blues and rock and influencing a generation of guitarists, including Jimi Hendrix, Eric Clapton and Buddy Guy. His lifelong accompanist was Lucille, his black guitar that Gibson crafted for him. Born Riley B. King in 1925 on a tenant farm near Itta Bena, MS, he worked as a sharecropper. A preacher uncle taught him how to play the guitar and, in the late 1940s, he landed a job as a disc jockey at Memphis radio station WDIA where he was nicknamed “Beale Street Blues Boy,” which was later shortened to B.B. He never stopped playing the guitar, though, and by the mid 1950s, he was becoming a well known and peripatetic musician, playing 342 one-night stands in 1956. Up until the last three years, he was still performing about 100 shows a year. King’s legendary persona and musical ability brought him many honors, including induction into the Blues Foundation Hall of Fame, the Rock and Roll Hall of Fame and the Songwriters Hall of Fame. He also received the Presidential Medal of Freedom from President George W. Bush. Sad to hear that one of our generation’s greatest musicians and musical influences has passed on…a tip of the hat to CVS Health for announcing that it will rebuild the two Baltimore City stores that were set on fire last month during the protests and riots in response to the death of Freddie Gray. “We have a long history of serving inner city communities and we are 100 percent committed to serving our patients and customers in Baltimore,” CEO Larry Merlo said. The two stores are located at 2509 Pennsylvania Avenue and 2560 West Franklin Street…and finally, happy birthday wishes are extended to Yogi Berra, the New York Yankees Hall of Fame catcher who was voted to play in 18 all-star games and whose Yankee teams won an incredible 10 World Series. Yogi turned 90 on May 12 and to quote one of many phrases from Yogi’s lips that would most apply to my job: “You can ob
serve a lot by watching.”