Welcome to Leading Edge, a semi-monthly Q&A forum where some of the grocery industry’s top executives share their views on several current and important topics. This week’s interviewee is Rick Rodgers, chief executive officer of Baltimore-based B. Green & Co., which operates 8 independent supermarkets under the Green Valley Marketplace, Food Depot and Shoppers Value banners. Additionally, the company owns two cash & carry units and a redistribution business. Rick shares his views about supply chain problems, lessons learned from COVID and the nuances of being a chief executive for the first time.
- What part(s) of the current supply chain dysfunction concern you the most? Using your crystal ball, when do believe we’ll see some improvement and in which areas first?
The concern I have with the current state of supply chain is that the challenges continue to evolve, after the initial shock of COVID we have not recovered. Port congestion, out of control freight costs, driver and container shortages, labor and material shortages, and unprecedented inflation have leveraged supply chain like never before and the industry is struggling mightily for answers. Now we have the Russia and Ukraine war that will have a major impact globally on trade. Unfortunately, I think the challenges in supply chain will linger with us for the foreseeable future.
2. Over the past decade, we have seen the number of independent retailers shrink in the Baltimore market. Why do you think this reduction is occurring and what are the “differential” factors that have allowed B. Green & Co. to survive and flourish?
There are a variety of reasons for the unfortunate reduction of local independents in the market. Many small retailers do not have a succession plan in place, others had a tired and dated business strategy, and some simply lacked the resources to compete with the fast-growing big chains. Fortunately, Benjy Green, the third generation CEO and owner of B. Green, read the tea leaves better than most and assembled the next generation team while he was still regularly active in the business. He understood that to continue our legacy, we would need to evolve and blend the local history of the company with a new concept. “Green Valley Marketplace” is a collaboration of past success and what the customer wants in a grocery store today.
3. It’s been two years since you were promoted to chief executive. What did you have to do to adapt to a new role in the company and what do you consider your top priorities to perform your job successfully?
I was fortunate that ownership and our board gave me a tremendous amount of support and freedom in the transition. Interestingly, at the beginning of my journey, COVID and a major ransomware attack were there to welcome me to the rank of CEO. Not only was my position changing, so were many other key roles in the organization. This added complexity made us focus on the challenges in front of us, not our new titles. As the CEO I have had to recalibrate how I listen, communicate, and lead. I recognize I am building on a 100-year legacy the B. Green family has entrusted to me. My focus is the continued evolution of B. Green and its business model, while delivering on the “promise” we have made to our staff, customers, and shareholders.
4. Now that the normalization of business is becoming more level, where are the growth opportunities for B. Green & Co. (e.g., new stores, additional focus on e-commerce, reformulating cash & carry business, expansion of redistribution business)?
The organization will be looking for opportunities to open additional retail stores and is well positioned for growth. I do not see us adding any wholesale locations, but we will certainly be expanding our delivery footprint within the Mid-Atlantic region. E-commerce has accelerated, helped by COVID to a point that its viability cannot be ignored. Like many independent retailers we are in the game, but we are not winning. We are currently outsourcing delivery and selecting orders in house. We realize we need to be more efficient to grow, but struggle with whether to invest in our own infrastructure or continue to look at third party options.
5. What were the major lessons you learned from COVID? What policies and protocols has B. Green & Co. adopted that you believe are important and long-term?
The impact of COVID on all our lives was difficult and presented numerous challenges. With our office personnel who were sick, we could have them work from home. In our retail locations, our employees were not afforded this option, so they were on the frontline where they interacted with thousands of customers weekly. In a retail location, a sick employee would be sent home and could not work. This situation was further complicated if a family member was sick, if schools closed or daycare was not available and the employee was forced to call out. The major lesson learned was that we needed to take care of our most valuable resource: our associates. We added mask mandates, supplied masks, gloves, plexi-glass dividers, six feet floor markers, hand sanitizer stations and other CDC suggestions. We learned that being flexible and communicating to our associates, customers and vendor partners was critical. I am still in awe of the incredible dedication and what the B. Green team was able to accomplish during this unprecedented time.