Food Trade News

On May 10, The Giant Company (TGC) announced plans for five new stores in Philadelphia, accelerating its omnichannel growth in the city, the Carlisle, PA-based Ahold Delhaize brand noted.

Building on the momentum of its Giant Heirloom Market format, the company plans to open a new 32,000 square foot store in the Fashion District at 801 Market Street. In addition, the retailer will open three new Giant stores in the city including a 46,000 square foot unit on Columbus Boulevard at the corner of Reed Street; a 50,000 square foot supermarket on North Broad Street at the corner of Spring Garden Street; and a 40,000 square foot store on South Broad Street at the corner of Washington Avenue. The fast-growing merchant said store amenities as well as opening dates for each new store will be shared at a later date. Earlier, TGC also announced that it would build a new 67,000 square foot store on Cottman Avenue in Northeast Philadelphia which is slated to open later this year.

The Columbus Boulevard., S. Broad & Washington and Cottman Avenue locations were previously reported in Food Trade News.

“The Giant Company is committed to Philadelphia and this expansion across our family of brands exemplifies our strategy in action,” said Nicholas Bertram, president TGC. “True to its reputation of being the City of Brotherly Love, Philly families have wholeheartedly embraced Giant, Giant Heirloom Market and Giant Direct and that has only fueled our team to dream bigger and more boldly as we shape our plans for tomorrow. We’re excited about our future in Philadelphia and to be expanding across the city, with stores designed for both families and commuters that meet the needs of each unique neighborhood.”

On March 19, TGC opened its flagship Philadelphia store on North 23^rd Street, a 65,000 square foot two-level store in the Logan Square neighborhood of Center City.

Renovations are also currently underway at the company’s new Giant Direct e-commerce fulfillment center located on Island Avenue in Southwest Philadelphia. The new depot will provide more capacity, faster order fulfillment and room to grow home grocery delivery, in response to the increasing number of customers who want to order online.

“The Giant brand has long been a trusted partner for families in the suburbs,” added Bertram. “As we deepen our presence in the city, no matter how our customers choose to shop, in store or online, The Giant Company will be there, offering the grocery solutions they’re counting on to help them spend more time gathered with family around the table.”

Including Giant and Giant Heirloom Market, the company currently operates five stores in the city of Philadelphia. These locations, along with the Cottman Avenue project and its Giant Direct e-commerce fulfillment center, which is slated to open in November, will bring TGC’s total cap-ex investment in the city to more than $135 million.

As the second largest private employer in the Commonwealth of Pennsylvania. TGC currently employs more than 27,000 team members statewide, including approximately 600 associates in Philadelphia. The company anticipates hiring approximately 700 team members in total across these four new Center City locations. The regional chain noted that with the help of its customers and supplier partners, and through strategic partnerships with Children’s Hospital of Philadelphia, Philabundance, the Philadelphia Phillies, the Philadelphia 76ers, the Urban League of Philadelphia, and Please Touch Museum, since 1998, the retailer has contributed more than $35 million in support of its purpose of connecting families for a better future.

In a major structural change, Albertsons said it will shift center store merchandising and procurement responsibilities from its 12 operating divisions to corporate headquarters in Boise, ID.

The move was announced in a letter to vendors sent on May 7 from the Vivek Sankaran, CEO, and signed by Albertsons’ 12 division presidents and other senior members of its leadership team. The letter stated:

Albertsons Partner,  

 Thank you for your partnership and support as a valued supplier through these unprecedented times.​

Despite all the disruption of 2020, Albertsons Companies has delivered for our customers, outperformed competitors, and gained market share, accelerating a transformation we began in 2019. 

This year, we are going to invest in a total Albertsons Companies approach to category management that puts the customer first in our decisions and brings the best of our supplier partners to them. As part of this category-led process, we are changing our model for how we manage most of our center store categories and a few of our Fresh categories.
We are appointing some of our most exceptional merchants as National Category Directors to represent all of Albertsons Companies’ 12 divisions. These National Category Directors will be empowered to make company-wide category decisions around assortment, space, and vendor negotiations, in order to support our ambition to grow our collective business.

Please note that this is a departure from the past.  It is not a one-time exercise, but a new way of doing business, which will drive growth for Albertsons and for our best partners.  Additionally, this change will make it easier for you and your teams as you will have a single point of contact at Albertsons for many categories.    

We look forward to partnering with more of you in the weeks to come and will be in touch as your relevant National Category Director[s] are named. In the meantime, please continue to partner with the merchants you are currently working with.  

 According to several sources, Albertsons has been toying with the idea of centralizing its core center store merchandising for almost a year. Sankaran, who spent nearly 11 years in leadership roles with PepsiCo before becoming Albertsons’ chief executive in 2019, reportedly is a firm believer that greater economic savings and internal efficiencies can be gained by leveraging Albertsons corporate buying power. Albertsons is the second largest pure-play grocer chain in the country (with annual sales approaching $65 billion) behind Kroger.

Approximately six months ago, the retailer formed a committee to explore the hybrid concept and even selected a few categories (including candy) to test drive it. Our sources told us that Albertsons hopes to save more than $100 million in the first year alone by driving down cost and creating a larger scale. It is also hoped that those savings will also help the company lower its retail pricing.

As indicated in Sankaran’s letter, details are still being worked out, but here’s what we know thus far. The division structure will remain intact with local divisions making all operational and administrative decisions. Each operating division will still fully control perishables merchandising (the “few fresh categories” that Sankaran referred to in his letter refer to packaged processed meat items such as bacon and hot dogs which the company calls pre-pack). The divisions will also retain a team of grocery sales managers (category managers) to handle regional and local items which represent about 15 percent of center store sales. Also remaining within the current decentralized division structure will be local control of pricing, promotion and advertising.

In terms of staffing the new alignment, current sales managers can apply for the new “national category manager” positions, and if named, can remain based in their local headquarters. Our sources added that the new plan will be officially rolled out in June and take several months to implement.

Among those who also signed the letter with Sankaran were Susan Morris, COO; Shane Dorcheus, executive VP-retail operations; and former Acme veteran Dennis Clark, who currently serves as Albertsons’ senior VP-merchandising. Clark was one of the leaders of the committee that explored the centralized center store merchandising option. Regionally, the letter was signed by Rob Backus, president of Shaw’s/Star Markets, and Jim Perkins, president of Albertsons’ newly formed Mid-Atlantic division which was created in September 2020 and includes the Acme and Safeway banners as well as the newly acquired Kings and Balducci’s stores.

Albertsons was the first large chain to shift back to a decentralized model in 2013 when the company acquired more than 900 stores from Supervalu.

It’s been five months since Ahold Delhaize acquired a majority stake in online perishables-driven grocer FreshDirect and on May 5, the Dutch retailer announced a change of leadership. David McInerney, who joined the New York City-based e-commerce grocer in 2001 and has been chief executive of FreshDirect since 2018, has stepped down. He is being replaced on an interim basis by Farhan Siddiqi, Ahold Delhaize’s chief digital officer. McInerney will continue to serve as an advisor until the end of October. The big international retailer said it will initiate a search to find a permanent CEO.

FreshDirect was founded in 1999 by Joe Fedele, Jason Ackerman and McInerney. Fedele served as CEO from 2002 until 2004 and was succeeded by Jason Ackerman, who resigned from the merchant in 2018 when McInerney, a former chef, took the helm.

“FreshDirect has been an amazing, life-changing, 20-year adventure for me,” said McInerney. “I have been so fortunate to have worked alongside an incredible team of talented, dedicated people who all share the same passion for our mission – to make great fresh food easy to get. Our amazing farmers, ranchers and fishermen have inspired me every day as partners, teachers, and true friends. With the commitment and support of Frans (Muller, Ahold Delhaize CEO), Farhan, and the entire Ahold Delhaize team, FreshDirect is in excellent hands and well positioned for continued success.”

Siddiqi, who joined Ahold Delhaize from McDonald’s Corp. in 2019, noted, “On behalf of Ahold Delhaize, I want to thank David for his dedication and leadership over the past two decades. As co-founder, David has been instrumental in establishing FreshDirect’s philosophy in bringing the best fresh and high-quality products to people’s doorsteps in the Tri-state area. We will ensure a smooth transition and honor FreshDirect’s unique customer-focused and food-centric culture and deep connection with its suppliers. FreshDirect’s customers will continue to enjoy the high-quality fresh food, great tasting products and stellar service for which FreshDirect is known.”

Ahold Delhaize (80 percent ownership) and private equity firm Centerbridge Partners (20 percent) announced last November that it had agreed to acquire FreshDirect for what was later revealed to be $408 million. Annual estimated sales for FreshDirect are believed to be approximately $700 million.

At the time of the announcement, Muller said, “FreshDirect is a leading local brand in the fast-growing online grocery sector in the New York City metro area, one of the most important ecommerce food markets in the United States. With its unparalleled quality of fresh food, exceptional brand recognition, and dedicated people, it has generated remarkable customer loyalty. This acquisition further propels our omni-channel evolution. It is a great addition and fit for our portfolio of leading local brands. The deal allows us to reach additional customers in the New York trade area and therefore will add incremental sales to the business. It further enables us to address customers’ growing preference for convenient ways to shop. Finally, we are excited to have Centerbridge alongside of us in this venture and believe our combined focus, expertise, and scale will help us maximize the success of FreshDirect going forward.”

The deal was consummated and approved in less than two months and a new structure was set in place with seven directors – five from Ahold Delhaize including Muller, McInerney and Siddiqi – and two from Centerbridge.

Other directors have not yet been publicly revealed, and one source told us that board members may be rotated over the next three years while Ahold Delhaize learns more about how a pure-play grocery delivery firm like FreshDirect best fits into the chain’s expanding omnichannel direction.

In 2018, FreshDirect relocated its corporate headquarters and its primary distribution center from Long Island City (Queens) to a new 400,000 square foot automated depot in the Bronx. The company now services parts of seven states including New York, New Jersey, Connecticut, Pennsylvania, Delaware, Maryland and Virginia in addition to the District of Columbia. The e-merchant also operates a smaller distribution center in Prince George’s County, MD.

Fresh food sales account for more than 60 percent of its volume.

In a deal that lasted less than a year, Burris Logistics is yielding control of Albertsons’ Mid-Atlantic division’s frozen food business which supplies approximately 275 Acme and Safeway stores in Connecticut, Delaware, Maryland, New Jersey, New York, Pennsylvania, Virginia and Washington DC.

Effective late June, C&S Wholesale Grocers, based in Keene, NH will begin to supply all of the grocery chain’s Mid-Atlantic units with mainline frozen foods, ice cream, frozen bakery and frozen commodities. C&S will supply those stores from the same 220,000 square foot Harrington, DE distribution center that Burris owns.

Sources at Albertsons told us that Burris opted out of the deal, which was signed early last summer, because the arrangement was unprofitable for the Milford, DE-based logistics company. In recent years Burris has grown in such diverse areas as foodservice distribution (Honor Foods where a new $50 million distribution center was opened earlier this year in Philadelphia), cold storage warehousing (PRW Plus which operates 16 cold storage warehouses east of the Mississippi), freight brokerage (Trinity Logistics), and customized collaborative and transparent supply chain solutions (Burris Custom). The company also supplies all of B.J’s Wholesale’s frozen and refrigerated items at its approximately 220 club stores.

It is expected that much of the current sales and warehousing Burris workforce dedicated to Albertsons (an estimated 125 people) will be employed by C&S once the transition is completed. It also marks the end of a relationship that the family-owned distributor has had with Acme that dates back to 1925 when John W. Burris and his father, Edward, recognized an opportunity to deliver freshly baked bread to Acme Markets on return trips from delivering tomatoes from the farms in lower Delaware and Maryland to markets in Philadelphia. Three more generations of Burris family leadership have followed from John E. “Jack” Burris to Bob Burris to Donnie Burris, who is currently CEO.

About 15 months ago, Albertsons announced it would move its distribution for its Safeway-Eastern division based in Lanham, MD from an Albertsons-owned warehouse in Upper Marlboro, MD to Acme’s larger and more efficient depot in Denver, PA near Lancaster. At the time, C&S was serving Safeway’s stores with frozen and Burris was supplying Acme’s approximately 160 units with frozen foods. Several months after the distribution consolidation was announced, Albertsons awarded the combined frozen business to Burris. Shortly thereafter, the two divisions also said they would be combining headquarters into Acme’s Malvern, PA facility and form a new division – Albertsons Mid-Atlantic division with a combined 275 stores and annual sales eclipsing $6 billion. Not expected to be integrated into the new supply deal at the outset are the 27 Kings and Balducci’s stores that Acme acquired at a bankruptcy auction earlier this year. However, when the chain completes the full integration of its newest purchase, those stores are expected to be added to the C&S roster possibly this fall.

According to an email sent by C&S’ procurement and merchandising teams to it vendors, “C&S will be managing and shipping this business through the current facility located in Harrington, DE with anticipated outbound shipping starting in late June 2021…test EDI (Electronic Data Interchange) purchase orders should be expected starting the first week of May in order to prepare for a smooth transition into the new facility. You should expect live purchase orders to begin transmitting in early June. As we prepare for the inbound receiving start in June, we ask for your continued partnership with the C&S Procurement and Merchandising teams, respectively, to ensure the highest possible service to our customers is maintained.”

Save A Lot (SAL) has taken another step in its effort to sell most of its corporately-owned stores to its independent licensees. Twenty-eight stores in Pennsylvania, New Jersey and Delaware have been acquired by two different existing SAL licensees – Save Philly Stores (owned by Shawn Rinnier), which currently operates five SAL units in Philadelphia and Leevers Supermarkets (operated by the Leevers family) which runs 17 Save A Lot stores in the Denver, CO market, as well as two other independent supermarkets, Colorado Ranch Market and Leevers Locavore (a conversion of a former Save A Lot unit).

About 15 months ago, Save A Lot, which has been struggling to maintain sales levels at its more than 300 corporately-owned stores, began a transformational plan in which it sought to convert to primarily a wholesale grocer and marketing support organization. When previous owner Canadian private equity investor Onex Corp (which acquired SAL form Supervalu in 2015) sold its declining investment last March (to other PE firms), a new board was selected and the company was given $350 million to execute the transformation.

During the past six months several deals with existing licensees have taken place including the selling of 53 former corporate stores in Florida to Fresh Encounter (the Needler family). Sources have told us that about 130 former corporate stores have been sold to date with as many as another 125 discount units at some level of negotiations. Save A Lot has also previously noted that it plans to retain corporate ownership of its 21 stores in the St. Louis area, near its headquarters.

The discounter, founded by Bill Moran in 1977, has seen a notable decline over the past five years primarily from its corporate units which once comprised about 40 percent of its total store base. It has also been maligned by many of its licensees who have criticized the merchant for its overly strict controls and poor supply chain execution. Not only have conditions deteriorated at many of its corporate entities, new competitor Lidl has impacted the discount grocery sector in the Mid-Atlantic and existing competitors Aldi, Price Rite Marketplace and Grocery Outlet have all improved or expanded their operations in the past three years.

The company has been led by Kenneth McGrath, CEO and Kevin Proctor, EVP since 2017. Both came from Lidl in Ireland in 2013 to lead Lidl’s fledgling effort in the U.S. but left the German discounter in 2015 before Lidl actually opened any U.S. stores. In recent weeks, Procter has reportedly left Save A Lot for a job at Amazon.

Shawn Rinnier, who has been involved with Save A Lot since 2010, currently operates stores in Darby and Upper Darby, PA as well as three units in Philadelphia. He also owns one Great Valu store in Philly (54^th & Chester) and another in Wilmington, DE (4^th & N. Adams St.).

The new stores are located in Clayton, DE; New Castle, DE; Wilmington, DE (Maryland Ave.), Brookhaven, PA; Folcroft, PA; Harrisburg, PA; Lancaster, PA; Norristown, PA; Reading, PA; York, PA; and Atlantic City, NJ.

“We’re very excited to add 11 additional stores to our organization. Each store is well positioned to make sure we can deliver a great shopping experience for our customers, and we are especially pleased to welcome the strong team of associates who have joined us in these new locations. We’ve also expanded and improved our leadership team by adding John Palmer, as director of operations, who formerly supervised Save A Lot’s corporate stores in the Philadelphia area,” said Rinnier, whose late father Mike also owned and operated several independent stores in the Delaware Valley area.

Leevers’ 17 stores are reportedly located in Ewing Township, NJ; Hamilton, NJ; Pennsauken, NJ; Cheltenham, PA and 13 stores in Philadelphia (2101 W. Lehigh Ave.; 701 W. Lehigh Ave.; E. Lehigh Ave.; Oregon Ave.; W. Dauphin St.; Aramingo Ave.; M St.; W. Alleghany Ave.; N. Broad St.; Rising Sun Ave.; Woodland Ave.; Castor Ave.: Frankford Ave.).

The grocery industry was stunned to learn of the sudden passing of Lee Delaney, the CEO and president of club merchant BJ’s Wholesale earlier this month. According to multiple sources, the 49-year-old chief executive died of a heart attack while running.

“We are shocked and profoundly saddened by the passing of Lee Delaney. Lee was a brilliant and humble leader who cared deeply for his colleagues, his family and his community. We extend our most heartfelt condolences and sympathy to his family, especially his wife and two children. We will honor his legacy and remember the extraordinary impact he had on so many. Our thoughts are with them during this difficult time,” said Christopher J. Baldwin, executive chairman of the BJ’s board and a former chief executive of the club store operator.

Bob Eddy, who was executive VP-chief administrative and financial officer, was named interim CEO. Eddy joined the company in 2007 and was named executive VP-CFO in 2011. He assumed the role of chief administrative officer in 2018. Additionally, at that time, Baldwin was elevated to the new position of executive chairman.

“Bob partnered closely with Lee and has played an integral role in transforming and growing BJ’s Wholesale Club,” said Baldwin on behalf of the board. “We have the utmost confidence in Bob’s leadership and his deep knowledge of the business. We expect to announce permanent changes to our leadership within a reasonably short time frame, aided by our prior succession planning.”

Delaney joined BJ’s in 2016 as chief growth officer and was named president 2019.  He added chief executive duties for the high-volume retailer last year, replacing Baldwin who became chairman of the board.

Before his BJ’s career, Delaney served as a partner in the Boston office of management consulting firm Bain & Company, and a leader in the firm’s consumer products practice. While at Bain, Delaney advised clients on corporate strategy, created new market entry plans, supported client acquisitions, and advised on large cost reduction programs. Prior to joining Bain in 1996, Delaney worked for Electronic Data Systems and Deloitte Consulting advising clients on a variety of engagements.

Delaney was a 1993 graduate of the University of Massachusetts, where he received a BS with a double major in computer science and mathematics. He received his master’s degree from Carnegie Mellon University.

He is survived by his wife Robin and two sons.

Retail Business Services, the services company of Ahold Delhaize USA,  announced that Rom Kosla, a food retail veteran with more than 25 years of information technology (IT) experience, has been named as Executive Vice President, IT, and Chief Information Officer (CIO). Kosla will oversee all aspects of IT for the U.S. businesses, with a specific focus on delivering common systems and innovation that create digitally enabled experiences and support the omnichannel ambitions of Ahold Delhaize USA’s local brands. Kosla joins Retail Business Services from PepsiCo, where he most recently served as Senior Vice President and CIO of Corporate and Enterprise Solutions. In this position, Kosla was responsible for all enterprise-wide applications, digital sales and mobile solutions platforms, as well as application security and enterprise-wide development and operations globally. Prior to joining PepsiCo, Kosla also worked in IT roles at Deloitte Consulting and Nestle. “Rom has two and a half decades of global IT experience, across all aspects of the industry – from development and applications to infrastructure and e-commerce,” said Roger Wheeler, President, Retail Business Services. “He not only brings a depth of experience that will create strong IT foundations and strategies that support the brands’ omnichannel ambitions, but he is also a great leader of people with a proven track record of developing an inclusive culture where associates are engaged and find purpose in their work. We look forward to leveraging this strong blend of expertise and leadership during a pivotal time for Retail Business Services and all the U.S. businesses as we continue to transform for the future and meet the needs of connected customers.” Kosla has served as an advisor to the Global Women’s Leadership Forum and as a leader for the Men on Board (MOB) initiative to support and mentor high-potential women to executive leadership roles. “It is an honor for me to join Retail Business Services,” said Kosla. “We’re emerging from an unprecedented time for the food retail industry, and evolving consumer expectations continue to require new technologies, agile workstyles and more. I look forward to working alongside my new team and across the organization to support Ahold Delhaize USA and its local brands to pave the way for the future of grocery retail IT.” Kosla joined Retail Business Services on April 5, 2021, and will be based in Quincy, Mass.

After experiencing unprecedented e-commerce sales over the past 12 months, Weis Markets is poised to grow its digital platforms significantly in the near future. That was the summation of its first digital summit held virtually on March 18. More than 1,000 vendors tuned into the 75-minute event.

Opening the meeting was Weis’ chief operating officer Kurt Schertle who outlined the company’s achievements over the past year and provided an overview of what to expect this year. Among the highlights were: topping the $4 billion sales mark, growing overall market share and doubling its e-commerce revenue which now accounts for 2 percent of total company sales.

Schertle also focused in on more specific digital changes including the transition from a print-oriented advertising model to one where the Sunbury, PA-based merchant will rely more heavily on digital promotions.

“We are in this for the long haul,” said Schertle, who first joined Weis in 2009. “ I believe we are extremely nimble and are able to react to situations immediately.”

He also addressed the regional chain’s record $150 million cap-ex budget slated for 2021. New investments include five new stores – Gap, PA (a replacement supermarket which opens on April 22); Bethlehem, PA and Macungie Township, PA (replacement units which both open in mid-May); and a net new store in Warminster, PA (which is scheduled to open in Q4 of this year). Another net new supermarket in Martinsburg, VA opened in February.

Additional spending will center on adding nine new fuel stations, 10 other supermarkets that will be remodeled and a significant investment to expand the retailer’s online/digital efforts. Schertle also thanked “all of our store teams, especially pharmacy.” He also acknowledged the contributions of Weis’ marketing team which includes Ron Bonacci, VP-public relations, advertising and marketing; Maria Rizzo, director of advertising; Amanda Bauman, manager of digital marketing; Alyssa Marsh, manager of media marketing; Laura Reber, manager of loyalty marketing; and Jaime Hynoski, Weis’ event marketing specialist.

Following Schertle, newly promoted (to senior VP-merchandising and marketing/chief merchant) Bob Gleeson addressed the virtual audience.

The youthful-looking executive, who joined Weis in 2019 after a long stint with Shoppers Food (where Schertle also worked for many years), spoke in greater detail about Weis’ shift from print to digital advertising, noting that while print is still being utilized, more emphasis is being placed on a monthly basis stressing emerging trends. Print will also be used to provide a boost during the holiday season and to highlight special events.

However, more investment will be made towards Weis’ digital effort including weekly and seasonal promotions. And relatedly, Weis is also expanding its branding and logistics outside its stores for grocery pick-up.

“We want to work with you in a timely fashion to meet your online needs as well as in the areas of in-store, online, mobile offers and more personalized opportunities,” Gleeson proclaimed.

Brian Bosworth, Weis’ director of center store sales and merchandising, told the vendors that the challenges of the pandemic ignited an explosion in consumer demand for online and urged the vendors “to find more ways to engage with us.”

Ron Bonacci talked about the depth of Weis as a media organization with a multitude of messaging platforms including digital, print, television, radio, direct mail, sports marketing, in-store signage and local sponsorship.

He emphasized that a successful partnership starts with an idea where Weis and its vendors can then search for an event or opportunity to drive awareness. At that point, Weis will begin executing the joint strategy, measure and share the results.

And over the past year, partially fueled by increased sales from the pandemic, Weis showed healthy revenue gains in its three shopper groups – fringe shoppers, opportunity shoppers and core shoppers.

The veteran marketing executive, who joined Weis in 2017 from United Supermarkets, also provided an overview of the company’s loyalty marketing programs. Bonacci focused on the personalization and versatility of its offers. He noted the continuing importance of the retailer’s “Gold Card,” which includes Weis’ top shoppers and according to Bonacci offers great rewards opportunities.

“We’re very excited that we’re evolving our digital footprint and we need your help very greatly. Please bring us your ideas, your concepts and your thought process. You will gain valuable knowledge in return.”

The final speaker of the afternoon was Amanda Bauman, who manages Weis’ digital marketing effort. She updated the vendors on several aspects of Weis’ “exploding” e-commerce business which saw web traffic increase 300 percent in 2020. She noted that Weis currently has 184 “Weis 2Go” online locations. For grocery delivery, the merchant is utilizing Shipt at 175 Weis stores. Additionally, during the past 12 months Weis has integrated store planograms with online store data to create broader shopping opportunities with its customers. Vendors also can now purchase ads within the “Weis 2GO” platform (through third-party CitrusAd) creating an online advertising network. Weis has also upgraded and refreshed its “Aisle One” digital program which features “targeted, personalized relevant items display driven by (customer) purchase history.”

Bauman also reviewed Weis’ e-coupon effort, which over the past year has figured more prominently in the company’s overall digital advertising plan.  She claimed that electronic coupons feature a 7.8 percent lifetime redemption rate and are now an integral part of the company’s “Fantastic Friday” event.

In reviewing Weis’ platform of digital marketing opportunities, Bauman focused on five key area where she believed vendors could benefit by participating: targeted emails, social media marketing, contests and sweepstakes, video and radio marketing and sports marketing.

Bob Gleeson then returned to the stage to thank the vendors for attending the virtual meeting and left with this message: “We are a forward-thinking company that’s nimble and quick to respond. We are a good partner and look forward to a good year going forward.”

During the virtual vendor meeting the company’s 2020 results were mentioned. More specifically, those financials were released about a week prior to the meeting, and the results were very healthy both for fiscal 2020 and for Weis’ fourth quarter.

During the 13-week period ended December 26, 2020, the regional chain with 197 stores posted a sales increase of 13.7 percent to $1.0 billion compared to the same period in 2019. Fourth quarter comparable store sales increased 14.1 percent.

Income from operations in Q4 totaled $26.9 million compared to $23.0 million in the same period in 2019.  Weis’s fourth quarter net income increased 2.8 percent to $19.4 million compared to $18.9 million in 2019, while earnings per share totaled $0.73 compared to $0.70 per share for the same period in 2019.

On a full-year basis, Weis enjoyed an excellent fiscal 2020 with sales totaling more than $4.1 billion for the 52-week period, up 16.1 percent compared to the same period a year ago. Comparable store revenue increased 16.4 percent. Income from operations increased $78.5 million, or 92.8 percent over the same period in 2019 to $163.2 million.

For its full fiscal year, Weis’ net income increased 74.9 percent to $118.9 million compared to $68.0 million in 2019 while earnings per share for the same period increased $1.89 to $4.42 per share.

“The pandemic has been a supreme challenge for our communities and associates who continue to diligently serve our customers,” said Jonathan H. Weis, chairman and CEO. “As previously noted in our third quarter results release, in-home meal consumption soared in 2020 due to an increased number of customers and their families working or attending school remotely. We met this demand by ensuring a safe shopping environment for our customers and associates and operating stores that were consistently in-stock. Our results were made possible by increased replenishment schedules, adaptable procurement programs, enhanced ecommerce solutions, disciplined marketing and pricing programs, improved store, manufacturing and distribution efficiencies and consistent customer service.”

Weis also noted that its e-commerce sales increased 155 percent in 2020, adding that sales were also strong at the retailer’s fresh departments, notably meat and seafood, which benefited from increased at-home cooking.

For the second time in slightly more than a decade, specialty retailer The Fresh Market (TFM) is seeking to become a publicly-traded company. The Greensboro, NC-based merchant last month submitted a Form S-1 draft registration statement with the Securities and Exchange Commission relating to the proposed initial public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. TFM said it expects to use the proceeds of the offering for general corporate purposes, which may include the repayment of indebtedness. It currently operates 159 stores in 27 states.

The upscale retailer, which was founded by former 7-Eleven executive Ray Berry in 1982, has encountered turbulent times for much of the past 10 years. When it first went public in November 2010 with an IPO valued at $290, the company operated 100 stores in 20 states.

Within a year of its first foray into the public markets, TFM began to stumble as its expanded quickly into new markets as well as adding stores in existing areas. Particularly disappointing was its entry and relatively quick exit from the large Texas and California markets. As the retail grocery landscape was evolving, TFM often found itself competing with like-minded retailers such as Whole Foods and Sprouts.

In March 2016, a subsidiary of large private equity firm Apollo Global Management agreed to acquire the retailer for $1.36 billion in cash. At the time, TFM operated 186 stores in 27 states.

Apollo’s stewardship of the specialty merchant has been rocky, too, although the company has improved its balance sheet and efficiency over the past 18 months, aided by the leadership of its relatively new CEO, Jason Potter who joined TFM in March 2020. Potter spent most of his career with Canadian retailer Sobeys. Also helping fuel TFM’s recent improvement has been the sales tailwind resulting from COVID-19 shopping patterns.

Over the past year, Potter has realigned his senior management team bringing in Brian Johnson (ex-Brookshire Grocery) to oversee store operations, naming Kevin Miller (ex-Natural Grocers by Vitamin Cottage) as chief merchant and adding Jim Heaney (ex-Carnival Cruise Lines) as CFO.

In February, Moody’s Investors Service upgraded the corporate family rating and probability of default rating of The Fresh Market, Inc. to B3 and B3-PD from Caa1 and Caa1-PD respectively. Moody’s also elevated the rating of the company’s senior secured notes to B3 from Caa1. The investor research firm said TFM’s current outlook is stable.

“Fresh Market’s topline and EBITDA has demonstrated an improving trend since 2019 and got a further boost from pantry loading during the pandemic as consumers increased transaction sizes while lowering the number of trips to the store,” Moody’s VP Mickey Chadha stated. “Although the recent unprecedented sales growth is expected to moderate in 2021 and the industry will remain highly competitive, we expect leverage to remain below 5.5x in the next 12 months.” Moody’s also noted that same-store sales increased about 20 percent last year, in line with industry averages.

Still, not everybody is convinced that an attempted IPO will be successful. Several financial analysts expressed some level of skepticism including one Wall Street critic.

“On the positive side, The Fresh Market has improved as a company and its upgraded financial ratings are testament to that,” our source noted. “However, I believe some retailers and their investors are trying to catch lightning in a bottle by seeking a publicly-traded solution to their long-term issues. While I think Apollo, which certainly enjoys a lot of clout in the financial markets, is wise to be going the ‘confidential preliminary route,’ the fact remains that that the explosive sales of the pandemic are already waning and will diminish even more when schools are fully open and restaurants return to more normal levels. The retail grocery field is as crowded and competitive as it’s ever been. Those hoping that a public offering will be the equivalent of a ‘get out of jail’ card need only to look at the recent history of Albertsons (whose IPO launched at a value of approximately 25 percent lower than expected) and Southeastern Grocers (who canceled their IPO effort after lukewarm interest).”