Total Market Gridlock – Overstoring, Diversity Of Shopping Options, Deflation Creating More Agita
Overstoring still causing an endless traffic jam of retailers in the Northeast? Check.
A wide variety of brick and mortar retail formats and styles from which consumers can choose? Check.
An increase in online delivery-driven shopping for grocery items? Check.
A growing portal of meal kit solution companies beginning to gain greater penetration? Check. Deflation in many perishable categories especially milk, eggs and meats? Double check.
Let’s step back and analyze. Virtually every urban and suburban marketing area in the Mid-Atlantic has been overstored for the past seven years and it seems every silo of food and drug retailing – supermarkets, specialty stores, ethnic markets, club stores, mass merchants, drug stores, c-stores and dollar stores – have increased their grocery SKU load over the past 18 months. Amazon and its perishables unit have added more fulfillment houses in the past 12 months. Start-ups such as Blue Apron, Hello Fresh and Plated are making at least some headway with their meal kit offerings.
So, without further ado, here’s my progress report on the largest supermarket operators in the region.
ShopRite – Whether it was Metro New York or the Delaware Valley, the ShopRite legacy continued to flourish. ID sales were generally flat for the retail arm of Wakefern, but when you’re averaging more than $1 million per week per store, that’s an impressive mark by itself to attain. With the addition of 10 new stores (mostly former A&P units), ShopRite operators produced the best post-A&P results of any of the other Tea Company store buyers and has other additional new stores slated for Philadelphia (Bridge & Harbison); Bedminster, NJ; Old Bridge, NJ; S. Brunswick, NJ; Sparta, NJ; Camden, NJ; Shrewsbury, NJ; and Sparta, NJ. The only question about ShopRite’s long-term future success is whether the next generation of family owners can perpetuate the high level of success that previous generations have. However, as for the present, Shop Rite remains a dominant number one because, as I said last year, they walk it and talk it – and at the end of the day, have earned their spoils.
Stop & Shop (New York Metro Div.) – The perfect number two competitor for market leader ShopRite. Stop & Shop runs solid, yet uninteresting stores that seem unwilling to press ShopRite a little harder. Locations are good, pricing is competitive and you can certainly find virtually any item you need at the 211 Stoppies in the Metro NY area. ID sales declined again this year and we’ll see how much Stop & Shop “improves” (as the executives at the new Ahold Delhaize organization predict) once the banner (brand) shifts to a decentralized merchandising model and the potential productive effects of synergies take hold early next year. One change over the past few months: Mark McGowan now heads the combined New York and New England division for Stop & Shop replacing the estimable Don Sussman in Metro New York.
Giant/Carlisle – Internally, not much of a different scenario than of its sister brand Stop & Shop. The decentralized merchandising plan is evolving with a new lineup set to begin early next year. Also early next year Nick Bertram will be replacing Tom Lenkevich (who is retiring) as president of the division. Externally, the differences between the two banners are distinct. Giant is not organized; Stoppie is a union shop. Morale at Giant is superior to that of Stoppie’s and the performance of the Carlisle, PA-based “brand” has been much more consistent over the past five years. However, there are some signs of slippage at Giant – more store staffing is needed and, like other Ahold USA units, associate training has declined. At the end of the day it’s about improving customer engagement which leads to “selling more stuff.” Giant still gets high marks, but is capable of doing better.
Acme Markets – A difficult year for the Malvern, PA-based division of Albertsons. Market conditions certainly affected the chain, which had performed admirably in the two prior years, but some of Acme’s challenges were predictable. The decision to acquire and quickly open 71 former A&P stores might have provided a short-term boost, but the condition of those stores and the culture Acme inherited in them created a negative rebound effect, particularly in Northern New Jersey where consumers were generally unfamiliar with the Acme name. While Albertsons is spending more cap-ex on its Acme division than any other in the entire company, even more is needed. What’s also needed is a cultural improvement at many of the Tea Company stores it purchased. Former Acme president Jim Perkins officially returned last month to once again steer the Acme ship. Jim is dogged, street smart and tireless, but he’s working with a thin staff, so more is needed from everyone to regain the momentum of the recent past.
Weis Markets – A great year for the regional chain especially in light of how tough market conditions were. ID sales were up during all four quarters and with 44 newly acquired stores added to its fleet, Weis now operates more than 200 stores with projected overall sales eclipsing $3.5 billion. One of Weis’ greatest strengths is its humility. Not a lot of egos on the team or excessive process in how to reach the end zone. CEO Jonathan Weis and COO Kurt Schertle really are the new disciples of “selling more stuff.” Look for more “in-fill” acquisition opportunities to exploit; but don’t look for a lot of flash. The mojo is very positive and the plan is working.
Wegmans – Just because their average store volume exceeds $1.1 million per week and their loyalty quotient is on the same level as ShopRite, it doesn’t mean Wegmans isn’t prey to the fierce competitive conditions and deflation that others also faced during the past 12 months. The one common link between the per-store volume kings is the consistency of their operations and the loyalty of their customer bases. In a flat year when measuring ID sales, Wegmans’ foundation remained very strong. Later this year, the Rochester, NY uber-merchant will cut the ribbon on stores in Hanover Township, NJ (July 14) and Montvale, NJ (September 24-which should be a killer). Other new stores in the NY-NJ-PA pipeline include locations in Lancaster, PA, Brooklyn, Harrison, NY and the recently announced Middletown, NJ. One management change worth noting is the elevation of Colleen Wegman to CEO. Her dad, Danny, becomes chairman. Don’t look for any discernible disruptions in the powerful Wegmans engine.
Krasdale – Now that all of the groups supplied by wholesaler Krasdale have been lumped together, they are truly a collective force, primarily in the five boroughs of New York City. Revenue growth in recent years has been relatively flat, but with 349 stores in NYC operating under such banners as C-Town, Bravo, AIM, Market Fresh, Shop Smart and Stop 1, Krasdale’s foundation is solid. And those independents which are serviced by the White Plains, NY wholesaler have shown tremendous loyalty in their dedication to the distributor and vice-versa. Perhaps the overarching issue for the family-owned wholesaler is determining a long-term succession plan.
Key Food – Continues to make progress against the other wholesale and co-op driven independent groups (particularly ASG) in the Metro NY market. Performance during the past 12 months was solid, but not at the same spectacular levels of 2015 and 2016. The 80 year old organization still managed to add four new stores, increase its market share in the five boroughs and expand further into New Jersey. In the long-term, the tireless work ethic and aggressive marketing approach of CEO Dean Janeway and COO George Knobloch will be the keys to the company’s future success, just like it’s been for the past eight years since the former Wrigley executives joined forces in Staten Island to rebuild what was then a fading legacy.
Amazon Acquisition Has Wide-Ranging Implications For Whole Foods, Other Retailers
This one caught most of us by surprise. While many analysts thought that Amazon would soon need to acquire a bricks and mortar enterprise to both to defend against Wal-Mart’s growth and as a learning lab to expand Amazon’s food presence, none of us thought that Whole Foods would be the target.
There had been some industry chatter that Amazon CEO Jeff Bezos might go after BJ’s (reportedly for sale) or one of the many regional food chains that could be looking to sell. You know, a more modest first step.
However, after watching Bezos’ acquisition strategy over the past five years, it’s clear he doesn’t believe in baby steps. Being “in” means being “all in.”
Beyond the initial shock of the blending of two of the country’s most well-known brands is the fact that Amazon is paying $13.7 billion in cash to acquire a retailer whose sales last year were $15.7 billion and whose recent metrics have been descending.
But this deal is much more about future opportunities than it is about price-to-earnings ratios and same-store sales.
With the swipe of a pen, Bezos and Amazon are about to transform the grocery business. And I’m not talking about a doomsday scenario for most other food retailers. If Bezos is able to spin his magic, certainly all retailers will be impacted to some extent. The possibility of shipping a case of “365” brand coconut water (or perhaps Amazon brand coconut water) from an Amazon fulfillment center to a residence in rural Pennsylvania has real growth potential. Even more basic would be Amazon’s ability to utilize WFM’s existing stores as in-house distribution centers for local deliveries.
Of course, if I ran Instacart, Whole Food’s same-day delivery provider, or UNFI, the retailer’s long-time primary grocery supplier, I’d be plenty worried. One could easily visualize those services being handled directly by Amazon, whose core business is essentially rapid distribution.
On the other hand, the bricks and mortar grocery business will remain a low margin industry because of its heavy reliance on labor and capital as well as having to account for shrink. That formula applies to discounters as diverse as Aldi and Costco and upscale operators like Whole Foods, Wegmans and even Eataly. As brilliant as Bezos is and as innovative as Amazon has demonstrated to be in its 23-year history, there’s no penicillin available to significantly improve margins when operating grocery stores of any type.
I’ve read a lot of commentary over the past week about this ginormous deal. Clearly, there are many different predictions about the future of Amazon in the traditional grocery business and the strategies that those existing brick and mortar operators need to adapt to a game changing deal like this. One of the best pieces came from Ken Cassar, an analyst from Slice Intelligence (intelligence.slice.com), an organization that measures digital commerce activity and customer loyalty. In an essay titled “Brick-And-Mortar Grocers Must Reinvent Or Die,” Cassar asserts, “From this day forward, brick-and-mortar grocers can no longer think about themselves as brick-and-mortar grocers. They must look at their stores as an asset, but their stores can no longer define them. They need to rethink their businesses from the consumer outward, but they need to begin to lead the consumer, rather than react to her. Most Americans do not buy groceries online – it is incumbent upon grocers to take consumers on a path towards doing so before Amazon does.”
He continued, “1. Every store must have a drive-through pick-up staffed with knowledgeable employees. 2. Grocers need to quickly develop the ability to precisely know what is in stock in every store in real time. 3. Grocers have to become experts in all forms of digital user interface, from Web sites to mobile apps to voice ordering to IoT (Internet of Things) commerce. 4. The grocery CTO (Chief Technology Officer) just became the most important employee at every grocery chain in America. Retailers that laugh off the impact of Amazon’s acquisition of Whole Foods will simply not exist 5-10 years from now.
“For brands, this acquisition needs to be viewed as an opportunity they have no choice but to seize. Every grocery chain in America is going to need to begin a process of deep collaboration with their brand partners to reinvent grocery shopping.
“The opportunities vary by category and by retailer. Brands need to help retailers redefine themselves in a way that is in tune with their markets and customers rather than collaborating to clone Amazon.
“Amazon’s biggest weakness is its own self-confidence. It has historically been uninterested in insights and ideas from its brand partners. Traditional grocers, though, have historically been highly dependent upon insights and ideas from brands. It is imperative that brands up their digital IQ in order to be the partners that grocers need right now.”
Yes, all retailers will have to accelerate their digital-driven offerings – whether that is by adding a delivery option to their platforms (a challenging task) or improving their “click and collect” models.
Two years ago, WFM co-founder and CEO John Mackey predicted that Amazon’s entry into grocery delivery would be the company’s “Waterloo.” Shortly after this deal was announced, in a “town hall” meeting with associates in Austin, TX, the 63-year old chief executive told the assembled group, “We’re all Amazon people. We’re one large tribe, one large family.”
Of course, nearly $14 billion would make almost anyone a believer.
Lidl Opens to Big Crowds At Initial 10 Stores; Aldi To Spend $3.4 Billion, Add 900 Units By 2022
The hype is over and the hoopla began on June 15 when Lidl opened the first 10 of what is expected to be more than 100 stores in the Mid-Atlantic and Southeast during the next six months.
The initial group of stores – located in Virginia Beach, VA; Hampton, VA; Kinston, NC; Greenville, NC; Sanford, NC; Wilson, NC; Rocky Mount, NC; Winston-Salem, NC; Spartanburg, SC; and Greenville, SC – all were reported to be extremely busy through the first weekend of business, as the German-based discounter which maintains its U.S. headquarters in Arlington, VA, concluded its four-day grand opening sale.
In the next few weeks, Lidl will open an additional 10 stores in Culpeper, VA; Chesapeake, VA; Norfolk, VA; Newport News; two in Richmond, VA (West Broad Street and S. Laburnum Avenue); N. Chesterfield, VA; Havelock, NC; Rockingham, NC; and Wake Forest, NC. All 20 stores that will open during the company’s debut period will be supplied from two distribution centers in Fredericksburg, VA and Mebane, NC. A third warehouse, located in Elkton, MD, is still under construction and will service new Lidl stores in Maryland, Delaware, Pennsylvania and New Jersey.
When it developed its U.S. strategy more than three years ago, the division of the Schwarz Gruppe elected to acquire all of its U.S. real estate. That’s an expensive proposition, and one which gave Lidl full control of its sites, but in many cases, prevented the company from gaining the best locations in many market areas it will enter.
However, opening day crowds proved that customers will travel for a discount and the stores’ 36,000 square foot footprint (about 21,000 square feet of selling space) covering six aisles offer a variety of mainly private label items in grocery, frozen and refrigerated. Also featured are fresh bakery items and pre-packaged meat, deli and seafood selections. The Lidl U.S. stores also offer a limited selection of small kitchen appliances, outdoor furniture and toys. The two Virginia stores that opened on June 15 also featured wine departments.
Lidl’s chief competitor in Germany and in other parts of Europe, Aldi, already has a 40-year head start on what should prove to be a fierce rivalry in the U.S. During the past year, Aldi unveiled a new larger prototype (featuring more perishables) and expanded into California. It currently operates approximately 1,600 stores in 35 states in this country and has set the standard when it comes to small-format discounting.
Three days before Lidl’s debut, Aldi announced that it will invest $3.4 billion by 2022 to expand its U.S. presence. That would give the Batavia, IL based merchant approximately 2,500 locations making it the country’s second largest food retailer – following Wal-Mart – in terms of store count. The aggressive expansion effort is also expected to add about 25,000 new jobs.
Aldi is in the last phase of its five-year $3 billion investment to reach 2,000 units by the end of next year and is spending an additional $1.6 billion to remodel 1,300 existing stores by 2020.
“We pioneered a grocery model built around value, convenience, quality and selection and now Aldi is one of America’s favorite and fastest growing retailers,” said Aldi U.S. CEO Jason Hart. “We’re growing at a time when other retailers are struggling. We are giving our customers what they want, which is more organic produce, antibiotic-free meats and fresh healthier options across the store, all at unmatched prices up to 50 percent lower than traditional grocery stores. We have passionate fans who know Aldi offers a smarter way to feed their families in a modern, convenient and easy-to-shop environment.”
‘Round The Trade
More Amazon news: The big Seattle juggernaut will reportedly open its first fulfillment center in New York State. The new one million square foot DC, which will be based on the west shore of Staten Island (two miles from the Goethals Bridge), could open by the end of the year and serve Amazon shoppers in the five boroughs, Long Island and the lower Hudson Valley of the Empire State… Wawa will enter a new marketing area when its cuts the ribbon on its first Washington, DC in December 2017. Its first District store will unveil a new footprint – it will be the Wawa, PA-based firm’s largest store to date at 9,200 square feet and it won’t sell gas. Wawa noted that it is looking to build as many as 10 new DC stores in the next three years…Kroger reported its first quarter earnings and sales, and the big Cincinnati retailer continued its recent trend of slightly declining ID sales (negative 0.2 percent excluding fuel) while also posting a 21.6 percent drop in earnings. However, the report was hardly one of doom and gloom. Overall revenue rose 4.9 percent to $36.3 billion, and adjusted net profits were still a healthy $546 million. Kroger’s biggest issues over the past 12 months have been deflation, a heightening of overall market competitiveness (especially from Wal-Mart) and unrealistic financial market pressures to maintain the tremendous track record the big chain achieved for more than a decade. I believe CEO chairman Rodney McMullen summarized Kroger’s current situation accurately when he stated: “We remain focused on our strategy. This will make a difference for our customers and create value for our shareholders. We are running the business with an eye toward where the customer is going. Customers tell us they want to connect with us in multiple ways with the help of friendly associates to easily provide meals to their families at prices that enable them to stretch their budgets. We are committed to providing that experience, and we will not lose on price. We are driving our strategy of lowering costs to reinvest in ways that provide the right value to our customers. We’re pleased that identical supermarket sales in the last nine weeks of the first quarter were positive, and that has continued in the second quarter to date.” Unlike some other jumbo chains in the supermarket and other channels, Kroger has a diversified strategy to build sales and, as importantly, has the talent and culture to overcome these short-term hiccups…one such merchant whose issues I don’t believe are short term is aforementioned Whole Foods Market (WFM), which recently learned that a Federal Appeals Court in New York overruled a lower court judgment and the company will now have to face a potential class-action lawsuit accusing the natural and organic retailer of overcharging Big Apple shoppers by overstating the weight of certain prepackaged foods in its New York City stores in 2015. A little further south, the Austin, TX based merchant is in a nasty fight with its landlord, Wical LP, over rodent and bug infestation at its unit at 2323 Wisconsin Avenue, NW in the District. That store has been closed since mid-March after the DC Department of Health found problems with insects, rodents and other pests. The dispute heated up after Wical sent a letter to Whole Foods last month allegedly claiming that the retailer was in default of its lease, which Wical claims prohibits the store from closing for more than 60 days during any three-year period. WFM’s suit says that the landlord’s intentions are to “strong-arm Whole Foods into paying additional rent and committing to a longer term (lease).”…another retailer in the “challenged” category is Sears – actually, they are more than challenged, they’re almost brain dead. Earlier this month, the inept retailer announced that it would close 72 more stores (16 Sears, 49 Kmarts and seven Auto Centers). That’s in addition to the 180 stores that the Hoffman Estates, IL-firm already said it would close in 2017. Seventeen of those stores are in the Northeast including four in New Jersey (one Sears, three Kmarts); four in New York (all Kmarts); three in Virginia (one Sears, two Kmarts); one in Maryland (one Kmart); three in Pennsylvania (all Kmarts); one in Massachusetts (one Kmart) and one in West Virginia (one Kmart) …Mike Witynski has added the title of president of Dollar Tree stores. Many in the trade remember Witynski from his years at Supervalu before he joined the Chesapeake, VA discounter in 2010. He was promoted to COO in 2015 and will now oversee merchandising, marketing and store ops at approximately 6,200 stores…yahoo, buckaroos! Earlier this month Wal-Mart renewed its annual tradition of bringing big-name entertainers to its annual shareholders meeting, which again was held at the Bud Walton Arena at the University of Arkansas in Fayetteville. Once Rascal Flatts and (in a private concert for associates only) Sheryl Crow performed, CEO Doug McMillon got down to real business in discussing what was one of Wal-Mart’s best years in the last decade. “Together, we’re building a new Wal-Mart,” the youthful chief executive told the sold out house. “We’re going to make shopping with us faster, easier and more enjoyable. We’ll do more than save our customers. And, you, our associates, will make the difference. Looking ahead, we will compete with technology, but win with people. We will be people-led and tech-empowered.” Among the new digital-driven programs being tested by the Behemoth are online orders being delivered directly to customers by Wal-Mart associates (bad idea); digital “endless-aisles” shopping in stores; automatic pickup towers in stores for online orders; pickup stations in store parking lots; and robotics and image analytics to scan aisles for item availability and shelf presentation. McMillon also noted initiatives designed to create a better experience for associates and shoppers. Those include free two-day shipping on more than two million items with no membership fee; a discount for customers picking up online orders in stores (click & collect) and implementation of its new Jet Fresh delivery, which provides delivery of fresh groceries in one-two days which is now available to half the U.S. population and is expanding its geographic reach. And speaking about Wal-Mart’s newest prized possession, jet.com, that Internet delivery unit will no longer carry any products from Costco’s Kirkland Signature brand. About 230 Kirkland Signature items could previously be found on jet.com’s website. But with Wal-Mart and Costco now seen as high volume retail rivals, it’s not surprising that this type of cross-selling would not exist in the long-term. According to published analytics data, jet.com accounted for 5.5 percent of Kirkland’s online sales in the first half of 2016…amid all of the hype surrounding the debut of Lidl in the U.S., you may have missed the news that supermodel Heidi Klum has inked a deal with the German discounter in which it will carry an exclusive apparel line under Klum’s name. While there is certainly a German connection between Klum and Lidl, I never thought I would use the words “supermodel” and “discounter” in the same sentence.
Local Notes
Sadly, the Pennsylvania Commonwealth Court has upheld the legality of Philadelphia’s beverage tax. That ruling essentially dismisses complaints from The American Beverage Association (ABA), which argued that the soda tax duplicated the state’s already existing sales tax. “We are deeply disappointed in today’s ruling. But no ruling can obscure the pain Philadelphia’s beverage tax continues to inflict on families and local businesses,” said Anthony Campisi, a spokesman for Ax the Beverage Tax. Shanin Specter, ABA’s attorney, said that the ruling would be appealed to the State Supreme Court. Our market study indicates that supermarket retailers in the city of Philadelphia have suffered sales declines of three to seven percent since the beverage tax was implemented in January 2017. And earlier this month, the Seattle, WA city council approved its own soda tax. This one calls for a whopping 1.75 cent per ounce tariff on sweetened beverages, including soda, energy drinks and other sweetened drinks. However, unlike Philly’s levy, the tax would exclude diet drinks. If passed, Seattle would join a growing list of cities, which includes Chicago and San Francisco that are implementing more discriminatory taxes on the food industry… several obits to note this month including that of Adam West, whose film career lasted more than 60 years. However, West will always be best remembered as the star of the campy TV series “Batman” (1966-68). West bounced around Hollywood for more than a decade playing bit parts before being cast as the Caped Crusader (aka Bruce Wayne) for a show many thought unlikely to be renewed for a second season. After the first episode aired in January 1966, an instant cult was formed with West and his sidekick Burt Ward as Robin fighting caricature-like criminals such as The Penguin, The Joker, Catwoman and The Riddler. But overnight success came at a cost – West found other roles over the years hard to come by. But West never became bitter, which is one of the reasons he was so admired by his fellow actors. “When you wear a mask and funny tights, it gets a little frustrating from time to time,” West once said. A good guy and one of my childhood favorites, Adam West was 88 when he passed. Bam!! Zonk!! Pow!!… I’m sad to report the passing of Stephen Furst, the movie and TV actor who gained fame playing Kent Dorfman (aka “Flounder”) in the iconic comedy “Animal House” (1978). As Flounder, the hapless beanie-wearing frat boy nicknamed by the movie’s star John Belushi (aka “Bluto”), Furst was on the receiving end of one of the funniest lines in cinema history, when Faber College dean Vernon Wormer addressed the horrific grades of members of Animal House. In his assessment of Flounder’s report card he uttered: “Fat, drunk and stupid is no way to go through life, son.” Furst was only 63…I was also devastated to hear about the death of Gregg Allman, 69, co-founder of the iconic Allman Brothers Band (ABB). The group that Gregg began with his late brother Duane created a distinct niche – Southern rock & roll that was tinged with soul and the blues. Gregg Allman’s deep, rich voice made him one of the most distinctive rock singers of the past 50 years and his bass-driven Hammond B-3 organ playing helped define ABB’s powerful and emotional sound. If you haven’t read his 2012 memoir, “My Cross To Bear,” it’s worth the effort and will help you better understand the complicated and amazing life Gregg Allman had. And if you don’t own a copy of ABB’s 1971 live “At Fillmore East” album, buy one immediately. …I was very troubled and saddened to hear of the tragic news at Weis Markets. Earlier this month, an employee at its Tunkhannock, PA store shot and killed three fellow associates before taking his own life. Sometimes I think I’m becoming too inured by workplace violence in this country (there seem to be multiple episodes every week). But when a tragedy of this magnitude hits home, it makes you shudder. My condolences to the families of the three victims. May they all rest in peace… as you may have read on page 1, the leadership change at Ahold USA’s Giant/Martin’s division is very noteworthy with current president Tom Lenkevich retiring at the end of the year and Nick Bertram, who joined the big retailer in 2013, replacing him in January 2018. Bertram will report directly to AUSA COO Kevin Holt. He is currently senior VP-merchandising, and most recently Bertram has been concentrating on the company’s commercial strategy as it relates to its shift to a more brand-centric organization. As for Tom Lenkevich – he’s simply one of the best retail executives on the planet with great leadership skills, a deep-rooted and diverse knowledge of the business, a tireless work ethic and off-the-charts people skills. Good luck to Nick on his new endeavor and to Tom with all of his future plans…and just before press time, we learned of two other CEO departures. Ian McCloud has resigned as top dog at Southeastern Grocers (SEG). McCloud, who is Scottish, but gained stature for turning around Australia’s Coles business, was hired by SEG’s principal owner Lone Star Funds to head the struggling Jacksonville, FL chain, whose stores trade as Winn-Dixie, Bi-Lo and Harveys. He will be replaced on an interim basis by our old buddy Anthony Hucker, former president of Giant/Landover. Good fortune to the intellectual and entertaining Mr. Hucker – he’ll certainly need it. Also leaving a top job is Rick Anicetti, who has departed as CEO at The Fresh Market (TFM). No surprise to me, especially when considering that shortly after Anicetti was named to overhaul the beleaguered Greensboro, NC-based upscale operator, Apollo Global acquired the specialty grocer. An excellent operator with strong people skills, Anicetti is indeed a talented merchant, but his entrepreneurial abilities and the rigidity of working for a PE company never seemed like a good match. Current CFO Brian Nicholson has been appointed interim CEO. TFM operates 176 stores in 24 states.
