Earlier this month, Ahold Delhaize announced the creation of Ahold Delhaize USA, to be effective on January 1, 2018. Ahold Delhaize USA will serve as the parent company for all of Ahold Delhaize’s U.S. companies, including its local brands, Stop & Shop, Food Lion, Giant Food, Hannaford, Giant/Martin’s, and Peapod, as well as Retail Business Services (RBS), a U.S. shared services company providing support to the brands.
Ahold Delhaize USA will be led by Kevin Holt, who will be appointed chief executive officer, effective January 1, 2018. Holt is currently chief operating officer of Ahold USA. In his new role he will remain a member of Ahold Delhaize’s management board and executive committee and will continue to report to Dick Boer, CEO Ahold Delhaize.
Holt essentially replaces the interim role that Ahold Delhaize deputy chief executive officer and chief integration officer Frans Muller held as acting COO of Delhaize America (Food Lion, Hannaford). Muller will also continue to focus on the ongoing smooth integration of Ahold Delhaize.
All brand presidents – Gordon Reid (Giant Food), Nick Bertram (Giant/Martin’s), Mark McGowan (Stop & Shop), Meg Ham (Food Lion) and Mike Vail (Hannaford); – will report to Holt. Also reporting to Holt will be Roger Wheeler (Retail Business Services); and Walt Lentz who is serving as interim leader of Peapod.
Dick Boer, CEO of Ahold Delhaize, said, “Combining the parent companies of the U.S. brands and RBS is the natural next step in our brand-centric strategy in the U.S. Kevin is an outstanding leader with extensive food retail experience and a great choice to guide our U.S. businesses through this time of continuing change and evolving customer expectations.”
Holt joined Delhaize Group in 2014 as CEO of Delhaize America and transitioned to chief operating officer of Ahold USA in 2017. Prior to joining Ahold Delhaize, he served in executive leadership roles at Supervalu and Meijer.
“I’m excited that we are moving into this next phase where we can focus on further strengthening our brands and winning in our markets,” said Holt. “Ahold Delhaize USA and its U.S. brands are well positioned to continue to drive growth and innovation and meet the evolving needs of customers, both in stores and online.”
In other related news, Ahold USA announced the closing of two its fresh format units – the original 3,700 square foot “laboratory” store – Everything Fresh – located on Locust Street in Philadelphia which opened in late 2014, and a bfresh store in Brighton, MA which opened in 2016.
In the three years since AUSA announced the formation of its fresh formats division, the company has opened four bfresh stores. Two of those stores (Brighton and Fairfield, CT) have closed and the two remaining stores are located in Allston, MA and Somerville, MA.
As part of its brand-centric alignment announced earlier this year, those stores as well as the company’s Eastside Marketplace in Providence, RI (which it acquired in 2014) will now fall under the Stop & Shop brand led by veteran Ahold USA/Stop & Shop executive McGowan.
“As part of our brand-centric strategy, Stop & Shop plans to develop new, small store format opportunities,” stated McGowan. “Fresh Formats was specifically created to develop and test format opportunities to understand what works and what doesn’t work in urban and other small store locations. We will apply key learnings from bfresh and the Eastside Marketplace – such as innovative technology, fresh prepared meals, a health focused assortment and exciting ways to engage customers digitally and online – to Stop & Shop stores more broadly and to future alternative and small format store opportunities.”
A third fresh format store will open next year in Newton, MA
Amid several conflicting reports, a source have told us that Ahold USA has not withdrawn from four previously planned fresh format sites in Philadelphia, although those stores might not ultimately open as bfresh bannered units. The source told us that plans are continuing to develop those smaller footprints into fresh format units, but specific plans and timelines have not yet been firmed up.
Those future stores are located at 201 South St. (Abbots Square); 3401 Chestnut St.; 1002 North Second St.; and 2303 Bainbridge St., all in Center City.