Even though Nick Bertram joined The Giant Company (TGC) in 2013 when the regional chain was known as Giant/Carlisle and the Ahold-Delhaize merger was still three years away, I really didn’t get know him personally until late 2017, shortly before he was to assume the top job at the Carlisle, PA-based merchant.
Curiously, I received a call from Carl Schlicker, the former Giant president (and a personal friend) who asked if I could meet him and Nick for dinner at a restaurant near Harrisburg. I told Carl that I would happily accept the invitation, but during the 90-minute ride drive to meet them, I kept wondering what these two could have in common on a personal level. After all, Carl’s five-year tenure as president of Giant/Carlisle and of Stop & Shop and COO of Ahold USA were highly productive, driven by Schlicker’s larger-than-life John Wayne-esque persona. I had met Nick perhaps a half a dozen times during his role as senior VP-merchandising and found him to be smart, fairly quiet and very young (he was 38 at the time). As I sat down, the first thing I asked was how they knew each other (Schlicker retired a few months before Bertram joined the company). As it turned out, both men went to the same church and formed a bond that was deeper than a business connection.
I was skeptical at the outset, wondering how this young buck could match the skill and success level of “Jersey” Carl or another industry all-star, Tom Lenkevich, whom Bertram would be replacing.
I told Nick that my goal was to help the retailer communicate its message to the trade while also providing a subjective analysis about the company. Moreover, I assured him that I was trustworthy and honest with my opinions and with Schlicker’s confirmation of his trust, a new bond was formed that evening.
While Bertram was a bit introspective, he certainly wasn’t quiet. And if there were any thoughts that he needed more seasoning to assume the top spot at one of Ahold’s best brands, they vanished almost immediately. He had a plan and was very confident that his people skills could take the company to new heights.
In January 2018, with the Ahold Delhaize deal completed 18 months earlier and a USA decentralization plan under way, Bertram began a four-year odyssey in which he would prove to be as impactful as any retail executive in the business.
For accomplishments, he continued the positive sales momentum that the company had enjoyed for a nearly 40-year period. During his tenure, more than a dozen new stores opened as TGC extended its lead in its core Central Pennsylvania marketing area and also gained market share in the Lehigh Valley.
And he aggressively fought to expand TGC into Philadelphia, first with Heirloom Markets, which in itself was born from the ashes of a failed small format Ahold initiative (Everything Fresh/Bfresh) and then with full-fledged supermarkets beginning with the Riverwalk store in 2021 (three of the four planned Center City stores have now opened).
And then there was Nick’s ardent commitment to omnichannel. Of all the Ahold Delhaize USA brands, no banner has been as successful as Giant with its GiantDirect platform and additionally with its two online fulfillment centers in Lancaster and on Island Avenue in Philadelphia which opened late last year.
But that only tells part of the story. In his four years at the helm, Bertram helped modernize TGC’s culture, perhaps the most difficult task any leader faces, but Bertram believed that the organization needed to get more vibrant and become more instinctive in adapting to the rapid changes, particularly in the technology and digital realm, which has impacted all merchants. Today, TGC’s management roster is a blend of skilled veterans and upcoming leaders who are passionate, focused and driven.
In fact, when I spoke with Nick shortly after he had given his notice, I asked him the obvious question: Why now?
He told me that his exit plan was determined earlier this year and once he promoted five members of his team in July, he believed the company was in good hands to continue successfully going forward.
So, at 42, Bertram has completed this chapter of his life. I’m not certain you’ll see him back in the retailer saddle anytime soon. Nick is an adventurer and a risk taker. While it’s hard to imagine that he would separate himself totally from the food business, he’s certainly different from the many “lifers” who still dominate companies’ rosters. CEO of an entrepreneurial start-up or leader of a large company unrelated to the grocery biz where Bertram feels he could be an agent of positive change? I wouldn’t rule anything out.
As for me, I’m thankful that I got to know Nick and am grateful for that dinner in Camp Hill in the fall of 2017.
‘Round The Trade
I’ve addressed some of the problems that Amazon has encountered with its brick and mortar “Fresh” stores in the U.S., and last month the company announced it has halted its expansion program in the U.K. where it operates 19 stores. As is always the case, disappointing sales are at the root of this decision, and for the most part, a similar comparison can be made at its U.S. stores. While “Godzilla” continues to open AF stores in the Mid-Atlantic (it debuted its second Chevy Chase store – at the site of the former Chevy Chase Supermarket – earlier this month), Chicagoland, Seattle and Southern California, the stores that I’ve visited (technology aside) seem poorly merchandised, operationally spotty and lackluster on an overall basis. Food retailing is a great equalizer: you just can’t put up four walls and try to dazzle customers with technology while offering a lackluster product…
Despite a difficult quarter, the Minneapolis-based merchant rewarded its chairman and CEO Brian Cornell with a three-year extension, recognizing the fine work the former Pepsi and Safeway executive has done since he became Target’s leader in 2015. By extending Cornell, 64, for an additional three years, Target also waived its age 65 retirement policy. In other company news, Gretchen McCarthy has been named chief supply chain and logistics officer replacing Arthur Valdez who retired. McCarthy joined Target in 2003 and most recently served as senior VP-global inventory management.
Sam’s Club will increase its membership fees next month, the first hike in nine years for the division of Walmart. Annual membership will soon cost conventional club members $50 (up from $45). Higher-tier members will see their annual fee increase from $100 to $110. As a comparison, Costco charges its “basic” members $60 annually and “executive level” members $120 a year.
MacGregor Read Jr. (no relation to Thurston Howell) has retired. Read was the vice chairman of Grocery Outlet and a former co-CEO of the Emeryville, CA-based discounter. Read joined Grocery Outlet nearly 30 years ago and had been a board member since 2006.
Just before press-time, we learned that Instacart has acquired Rosie, the growing e-commerce platform designed for independent retailers and wholesalers. Over the past six months, the San Francisco-based delivery company, which is morphing into a tech company as it nears an announcement to go public, has acquired several tech and analytics-based firms including AI-driven promotions and pricing software company Eversight Inc.
Local Notes
Ahold Delhaize’s FreshDirect unit is pulling the plug on its delivery services in the Washington, DC and Philadelphia markets in order to focus on its core New York Metro market business where it still controls a dominant (but shrinking) share of market. FreshDirect, which was controlled by private investors until early 2021 when Ahold Delhaize acquired a majority interest, expanded to Philadelphia in 2012 and then to the DC area five years later. Also closing will be FreshDirect’s distribution center in Capitol Heights, MD. More Ahold Delhaize news: the global chain’s U.S. stores achieved solid Q2 results with comp store sales increasing 6.4 percent, (ex-fuel) but whose operating margin dipped slightly – 0.3 percent – to a still healthy 4.7 percent. Online revenue increased 16.4 percent. On a comparable basis, Food Lion continues to be ADUSA’s top performer and now has recorded 39 consecutive quarters of positive sales growth. It seems like the specialty retailers category (Starbucks and Trader Joe’s) has been specifically targeted for unionization during the past several months. You can add MOM’s Organic Market to that list. The family-owned Rockville, MD-based organics retailer recently lost an election at its store in the Hampden section of Baltimore where associates voted to join Teamsters Local 570. This is the only unit (of 22 stores in five states and DC) of MOM’s that is affected. Contract negotiations are expected to begin shortly.
Real estate sources tell me that Amazon Fresh is looking to open a store in the Fair Lakes Shopping Center (at the site of World Market, which is expected to relocate in the same shopping center). If the deal goes through, this would be AF’s fourth store to open in Fairfax County, including supermarkets in Franconia, Lorton and another site in Baileys Crossroads which is currently under construction. “Godzilla” also opened another “Fresh” unit in Fairfax City in April.
Unfortunately, we have a few more deaths to report this month. Motown artist Mable John, has left us at the age of 91. John had the distinction of having hit songs in the 1960s with both of the prominent R&B labels – Motown and Stax. For Motown, her song “I’m Finally through With You” (backed by The Supremes who were known as The Primettes at the time) charted in 1962. John considered herself a blues singer and became dissatisfied with Motown’s shift to more pop-oriented songs, so, in 1965 she switched to Stax, the Memphis-based label that featured more gritty and soulful artists such as Isaac Hayes and Sam & Dave. In 1966, her first single on Stax became a hit – “Your Good Thing (Is About To End).” John was also the sister of Rock & Roll Hall of Famer Little Willie John who had the first hit recording of the classic song “Fever” in 1956.
From the world of sports, we’ve lost Len Dawson, 87, the Hall of Fame quarterback who led the Kansas City Chiefs to a victory in Super Bowl IV. After languishing as a seldom-used backup quarterback for the Pittsburgh Steelers and the Cleveland Browns for five years, Dawson’s career turned around in 1962 when he signed to play for the AFL’s Dallas Texans (who became the Chiefs a year later). The coach of that team was Hank Stram, who had been an assistant at Purdue during Dawson’s collegiate career. Dawson went on to play for 19 years and later had a stellar career as a broadcaster for NBC. He was elected to the Pro Football Hall of Fame as a player in 1987 and also as a broadcaster in 2012.
Muhamad Ali called him one of the hardest punchers he ever faced, and another heavyweight champion, Larry Holmes, found himself on the canvas in a title bout. We are talking about Earnie Shavers, whose punching power earned him 68 knockouts in a 26-year career. Although he ultimately lost to both Ali and Holmes, Shavers earned respect with his punching power and all-around ring savvy. Earlier this month, Shavers passed away. He finished his career with a record of 74-14-1 and among his conquests was future heavyweight champion Ken Norton, whom he dispatched by knockout in the first round. Shavers always had a reputation of being a good person outside of the ring; or as former New York State Athletic Commissioner Randy Gordon said, “He was one of the nicest guys in the world, until he got into the ring and tried to take your head off.” Shavers was 78 when he died.
