In an announcement that didn’t surprise many in the trade, Weis Markets officially promoted Bob Gleeson to senior VP-merchandising and marketing. Over the past six weeks, the veteran retail executive has served as interim chief merchant following the departure of Richard Gunn.
Simply said, this is a great pick – and it’s not because I’ve known Bob for more than 30 years that I say that. The truth is that Bob Gleeson checks all the important boxes in the visceral and intangible skills that are needed to oversee a large merchandising department today.He’s whip-smart, very prepared and has shown his versatility by succeeding in many jobs during his nearly 40-year career in the business, most of which were spent at Shoppers Food & Pharmacy. Intangibly, he’s got great people skills and, with his low-key demeanor, has that rare ability to not talk down to people while still getting his message across.
There are a few other reasons why promoting Gleeson was a wise choice. He’s at the right age where he can utilize his skill set to help broaden Weis’ e-commerce and social networking potential, and is highly regarded by the vendor community.
Equally important, he also worked with COO Kurt Schertle for many years at Shoppers, so there’s a mutual trust and bond between the two executives. In fact, when Schertle first joined Weis in 2009, he served chief merchant until his promotion to COO in March 2014 at which time he remained the retailer’s de facto chief merchant until May 2015 when Gunn was brought in.
And during their careers at Shoppers, where Schertle supervised both operations and merchandising, the two worked together closely. Having two executives who are aligned on Weis’ merchandising objectives and who also have had a strong working relationship since the 1980s is certainly an added benefit.
“This move is really going to benefit Weis in the long run,” said a veteran food brokerage executive who has called on Gleeson both at Weis and Shoppers. “He’s always poised, prepared and professional, a real student of the business. And don’t let his soft-spoken manner fool you. When he wants something, he’s not afraid to ask. And if you’ve made a mistake, he’ll let you know. But he’s also quick to recognize you personally when you’ve executed as promised.”
‘Round The Trade
While all of us in the business recognize how much e-commerce sales have skyrocketed over the past 12 months, two research companies have substantiated that growth. Brick Meets Click and Mercatus recently issued their monthly online shopping survey finding that digitally-driven grocery revenue grew to $9.3 billion in January 2021. That’s a big jump from the $7.1 billion sales number in January 2020. And since November 2020, total online sales jumped 15 percent, primarily fueled by a big gain in the number of households that are shopping online. Additionally, eMarketer predicts that e-grocery will top the $100 billion sales mark in 2021. That’s a full year ahead of their previous estimate. The New York-based subscription research firm also predicted that in just three years, e-grocery revenue will almost double to $187.7 billion. Relatedly, now that we’re a full-year into the pandemic, it will be interesting to see how retailers view their balance sheets given that the March-April period produced some incredible sales elevations. Obviously, the 40-75 percent gains achieved during the early part of the COVID-19 outbreak won’t be achieved, but merchants that are seeing positive comp sales in the 12-15 percent range are feeling confident they can maintain those levels at least until restaurants and schools are fully functional again. And those that have invested in long-term e-commerce initiatives have reason to feel even more assured that they will be able to exceed pre-COVID same store sales.
Some Walmart news: Bloomberg is reporting that the Behemoth is one step closer to becoming a legitimate financial services company (translation: bank) after hiring two executives from Goldman Sachs. Last year, the Federal Deposit Insurance Corporation (FDIC) ruled that it would allow non-financial companies to seek banking charters. And with a huge customer data base and thousands of stores in the U.S., any foray into financial services certainly would pose a real threat to conventional banks, which Bloomberg reports have been aggressively lobbying against what they term “industrial loan companies.” Walmart also announced that it is dropping the $35 minimum order requirement for its “Express” home delivery service. That’s not surprising because it appears to many observers that Walmart, while making much e-commerce progress over the past three years, is still fighting a steep uphill battle to grab share from Amazon’s “Prime” customer base. One more thought about the company’s financials looking ahead: how much impact will the temporary closure of 501 Walmarts (due to winter storm Uri) have on the company’s Q1 financial performance? Those stores, which are located in Texas, Mississippi, Tennessee, Louisiana, Arkansas, Virginia and West Virginia, have since reopened but had to be shuttered from one to six days. That’s a lot of lost business…
This just in: after another round of financing which hauled in $265 million, Instacart’s market value has risen to $39 billion, doubling its valuation in less than six months. I keep writing about Instacart’s market cap, because that number makes my head spin. Especially when I realized that the San Francisco-based delivery service, which will likely launch an IPO in a few months, is now worth more than Kroger ($25.9 billion) and Albertsons ($8.2 billion) combined. Those are the two largest supermarket retailers in the country, operating about 6,000 stores and collectively accruing approximately $180 billion in annual sales as opposed to Instacart’s annual revenue figure of approximately $20 billion.
Local Notes
Giant Food has rewarded its store level associates and those employees who work in distribution and at its online platform, Giant Delivers, with an “appreciation bonus” of $300 for full-timers and $150 for part-timers. The bonuses were paid on March 5. “This bonus…is a final way of expressing how much you are appreciated for your work this year, and to thank you for all the things you do, big and small, to serve our customers and communities. We can all agree that this year was unprecedented and extremely challenging for all of us, but we made it through and help is on the way with the coronavirus vaccines vigorously in production and distribution plans for it under way across the country. Of course, we must continue to be safe and patient as things get better. Our values of integrity, courage, care, teamwork and humor sustained us through the tough times and will guide us into better times in the year to come as we strive to be a better place to shop, a better place to work and a better neighbor. Thank you for being there for our customers every day in 2020, serving their online and in-store needs. Your contributions made their lives more manageable and meaningful and Giant’s work more purposeful. You have done your best this year, and for this, we express our sincere appreciation. Again, thank you for all you do,” said Giant president Ira Kress in a memo to the company’s associates.
In a follow up to a story we reported a few months ago, legislation has officially been introduced in both the Maryland Senate and Maryland House to consider allowing beer and wine sales in supermarkets, something that is severely restricted in the Old Line State. In order to qualify for a liquor license, stores would have to offer a full line of grocery products and would have to offer healthy food options including fresh fruits and vegetables, fresh, uncooked meat, poultry and seafood, dairy products, canned goods, frozen foods, dry groceries and baked foods and non-alcoholic beverages. Stores would have to designate a minimum of 50 percent of their square footage for the sale of food (or a minimum of 6,000 square feet). Stores that seek a license would also have to be located in Maryland-designated “priority funding areas” – existing communities where local governments want state investment to support future growth. This is just the beginning of what promises to be a hotly contested issue. If approved, the bill would become law on July 1.
The National Grocers Association (NGA) has relocated its offices from Arlington, VA to downtown Washington, DC (601 Pennsylvania Avenue NW, North Building, Suite 375; 202.938.2570). A statement from the trade group which represents independent supermarkets and some regional chains, noted: “For nearly 40 years, NGA has been an effective advocate for our member companies before government and the industry. Our move from the Virginia suburbs onto Pennsylvania Avenue in the heart of the nation’s capital will position NGA to have a greater influence in Washington, DC, while providing a venue to host lawmakers, policy experts and, most importantly, our members. This move allows our organization to operate more efficiently, while being strategically located between the U.S. Capitol, White House and key federal agencies. We look forward to welcoming our members and industry partners to our new offices as soon as we are able.”
And speaking of retail food trade associations, a tip of the hat to Leslie Sarasin, CEO of FMI – The Food Industry Association, on being named the 2021 “Association CEO of the Year” by CEO Update, a trade association itself whose subscribers/member include trade association chief executives. Sarasin, who’s done a great job rebuilding the industry’s largest trade group since she took the helm in 2008, was nominated for the award by FMI’s board of directors: “Under her leadership, FMI has emerged as a member-centered organization helping food retailing venues find new and future-facing ways of feeding families and enriching lives,” said Randy Edeker, Hy-Vee’s chairman/president/CEO, who currently serves as FMI’s chairman. “A committed collaborator, Leslie has infused FMI with a vision of cooperative action that amplifies the association’s ability to assist its members in addressing the critical industry issues of the day.” Couldn’t have said it any better…on February 24, Wegmans opened its third store in the Research Triangle area of North Carolina. The 100,000 square foot unit in Chapel Hill will soon be followed by another new Wegmans in Wake Forest (slated to open in May). The Rochester, NY-based uber-retailer also has plans to open other new Raleigh-Durham-Chapel Hill area stores in Cary and Holly Springs …sources have reported that Lidl is hoping to open a new discount unit in Hamden Twp., PA. (Cumberland County) in the near future. The site is at the current Liebman Furniture and Mattress Showroom on Carlisle Pike and is currently under zoning review. Lidl currently operates 11 stores in the Keystone State with additional units planned for Clifton Heights, Bristol Twp., Bensalem and Warminster.
We have a couple of obits to report, including one of the real good guys in the business, Tim Cronin. Tim spent 38 years with Giant Food where he served in many capacities including director of grocery pricing and sales. He was a high-standing member in the old-guard of Giant merchandisers (Dave Herriman, Tony Street, Dave Butner and several others) who was extremely intelligent and possessed a deadly dry wit. I spent more than a few evenings with Tim in the 80s and 90s and always enjoyed his company. He was only 71 when he passed.
The “Argentine Firecracker” is dead at the age of 84. Fanne Foxe (real name: Annabel Battistella) achieved her 15 minutes of fame nearly 50 years ago, but she still stands out as one of Washington’s greatest political co-stars. Note to our readers – I don’t normally pick up full obituaries from other publications but the one on Foxe that appeared recently in the Washington Post was so well-written I had to share it. “It was on October 7, 1974, when U.S. Park Police pulled over a silver-blue Lincoln Continental that had been swerving and speeding without headlights near the Jefferson Memorial in Washington. A female passenger in an evening gown ran from the car, climbed the stone parapet along the Tidal Basin and — acting on what she later described as a frantic impulse — leaped headfirst into the frigid, inky water. Her splashdown would ripple into one of the capital’s most infamous sex scandals. The woman, 38-year-old Annabel Battistella, was a plumage-shaking striptease dancer with the stage name Fanne Foxe. She was billed as “the Argentine Firecracker,” and patrons of the local burlesque circuit were captivated by her elaborate costumes – complete with five-foot-tall headdresses and tropical-colored ostrich and pheasant feathers – as well as the artfulness with which she removed them. On that particular night, after a boozy party at the Silver Slipper club, where she had performed, she got into a loud quarrel with her married lover. Amid the flow of alcohol and epithets, a friend who was driving them had forgotten to turn on the car’s headlights, attracting the attention of police, who trailed them from the club on 13th Street NW. With her plunge into the Tidal Basin, Ms. Battistella (later Annabel Montgomery), who died Feb. 10 at 84, secured her place in the annals of political scandal. Standing near the car — drunk and bleeding — was her paramour, 65-year-old Wilbur Mills, the gravelly voiced chairman of the tax-writing House Ways and Means Committee and a man esteemed as a pillar of Bible Belt rectitude and respectability. The Arkansas Democrat, an ascetic grind who shepherded Medicare and other influential legislation through Congress, was also widely regarded as the most powerful man in government after the president. “I never vote against God, motherhood or Wilbur Mills,” a Democratic colleague once told a reporter. But on that October morning, Ms. Battistella’s eyes were bruised. Mills’ Coke-bottle glasses were smashed, and his nose was badly scratched. He reeked of alcohol. And his 16-year hold on the federal purse strings was suddenly imperiled.” And to illustrate that people can indeed turn their lives around, Battistella settled down, moved to Florida and got married. In fact, she earned an undergraduate degree from the University of Tampa and two masters’ degrees in marine science and business administration from the University of South Florida.
