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Ahold USA Competes Largest 'Wave' Of Integration Process

Published October 9, 2017 at 6:24 pm ET

Ahold USA earlier this month completed the largest (in terms of personnel) segment of its decentralized integration plan when it announced its category management and operations teams at its three divisions (brands) – Giant Food, Giant/Martin’s and Stop & Shop. Those changes become effective January 1, 2018 when the Dutch-owned merchant unveils its new go-to-business model featuring a more localized brand structure.

Earlier this year, a Retail Business Services (RBS) unit was created to supervise many corporate and administrative functions for both Ahold USA and Delhaize America, the U.S. units of Ahold Delhaize which completed their merger in July 2016. RBS is headed by veteran AUSA executive Roger Wheeler.

This recent announcement of its “Wave B” decentralized plan structure applies primarily to Ahold USA. Delhaize America’s two operating banners – Food Lion and Hannaford – had already realigned over the past two years and AUSA’s new lineup (including job titles) resembles what previously had been put in place in Salisbury, NC (Food Lion) and Scarborough, ME (Hannaford).

Those Ahold USA merchandising and operations decisions came after the big retailer held two weeks of “outcome” meetings reportedly involving about 2,000 merchandising and operations-related associates, both at current corporate headquarters in Carlisle and at the divisions in late September, to ultimately determine if current merchandising and store operations associates would be offered positions in the new brand-centric structure and what those new positions would be.

While the alignment of category managers, category directors, market managers, regional operations VPs and district directors is generally uniform among the three divisions, there are nuances that exist.

For example, at Giant Food (Landover), there are fewer category managers and directors than at the other two divisions and sources have told us that Stop & Shop will support some of the merchandising functions for Giant Food from its Quincy, MA headquarters. For example, based on our information, Giant Food will deploy seven category managers and directors while Stop & Shop (a significantly larger division especially after its New England and New York Metro divisions were combined earlier this year) has 25 associates listed as category managers or directors.

Additionally, on the operations side, Giant Food will retain its two regional VPs of store operations, while the other two banners have eliminated the RVP position. Ten district directors will report to those two regional VPs who, in turn, report to Ira Kress, senior VP-operations.

At Giant/Martin’s, there are reportedly 27 category managers and directors and 11 district directors who will report to John Ponnett, senior VP-operations.

At Stop & Shop, there are 24 district directors, eight each who will report to Bob Yager, Stacy Wiggins and Steven Kienzle, all senior VPs of market operations and sales.

The current brand leadership teams at Ahold USA were announced a few months back and include (at Giant Food): Gordon Reid, president; Ira Kress, senior VP operations; Tonya Herring, senior VP-merchandising; and John McDonald, senior VP-marketing. Other previously announced key merchandising executives who will be based in Landover include Rick Manzi, VP-fresh, who will report to Herring. On the perishables side, Bill Campbell, director of meat/seafood; Al Rivero, director of produce/floral; and Paul Chapman, director of deli/bakery have been named to new positions and all will report to Manzi.

At Giant/Martin’s, Nick Bertram, current senior VP-merchandising for Ahold USA, will become president on January 1 replacing the retiring Tom Lenkevich. Reporting to him will be: John Ponnett, senior VP-operations; John Ruane, senior VP-merchandising; and Matt Simon, VP-marketing. Other previously announced key merchandising executives who will be based at Carlisle’s division offices include AUSA veterans Denise Mullen, VP-center store, and Dave Lessard, VP-fresh. They both report to Ruane. Reporting to Mullen will be Deb Kreider, Kyle Kirkpatrick and Rebecca Lupfer. Reporting to Lessard will be Steve Allison, Chris Keetch and Brian Lorenz.

At Stop & Shop, Mark McGowan remains president of the company’s largest division. Mark Messier has been named executive VP-merchandising and will report to McGowan as will store operations senior VPs Yager, Wiggins and Kienzle. Stop & Shop veteran Kerri Aguilo will become senior VP-center store and Joel Brissenden, Maria Ruisi and Natalia Torres-Furtado, all VPs, will report to Aguilo. Stop & Shops’s senior VP-fresh position remains open.  Harry Giglio, VP-meat/seafood; Tracy Waterman, VP-deli/bakery; and Brian Fleming, VP-produce floral will all report to the senior VP-fresh when that post is filled.

Still to come in the next couple of months is “Wave C” of the decentralized integration plan which will determine the fate and direction of many professional services associates (human resources, legal, finance and real estate).

 

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