Food Trade News

Mark Messier, Stop & Shop’s executive VP-merchandising, has announced his retirement from the company effective in early May.

Messier, who began his grocery career at Hannaford Bros. in 1983, has worked for either Delhaize or Ahold (which merged in 2017) continuously from that point.  In 2018, when the combined retailer restructured its organization to become more decentralized, Messier was named chief merchant for the largest of Ahold Delhaize USA’s retail brands. Prior to that, he was senior VP for Hannaford Supermarkets where he oversaw merchandising, category management and pricing for the Scarborough, ME-based merchant. Messier also worked for another former Delhaize America brand – Food Lion – from 2001-2015 where he served in several executive posts including VP-retail services and VP-merchandising.

Several sources have predicted that Messier’s role will not be directly filled. Those sources noted that Stop & Shop already has three capable senior VPs in its merchandising department – Jeff Dichele, senior VP-non-perishables; Peter Poutre, senior VP-fresh; and Marwan Fakhouri, senior VP-merchandising services, planning and execution – and they anticipate those executives will collaborate to handle Messier’s duties. Of the dozen trade executives we spoke to, many also expect president Gordon Reid to work more closely with the merchandising department as well as some of Stop & Shop’s key vendors.

Messier reports directly to Reid, who was named to fill the top post at the Quincy, MA-based retailer in July 2019 after serving in his previous ADUSA job as president of Giant Food for almost six years. Reid has been realigning his team over the past year, beginning with store operations.

In a recent letter sent out to the vendor community, Messier noted, “…I have tremendous confidence in Stop & Shop’s merchandising team and in the path that Stop & Shop is on under Gordon’s leadership. The team is in an excellent position to continue driving Stop & Shop’s omnichannel growth and to continue leading our markets as a retailer of choice.” He continued, “You, as a valued vendor partner, should not experience any changes in your relationship with the company. All contacts will remain the same, and there will be no changes in strategy related to this announcement.”

The Produce Marketing Association (PMA) has announced that its annual convention, the Fresh Summit 2021, will take place in-person on October 28-30, 2021 at the New Orleans Ernest N. Morial Convention Center in New Orleans, LA where it will implement a variety of safety protocols and modifications developed with guidance from public health authorities.

“We all had that moment in the last year when we knew that things would never be the same,” said PMA CEO, Cathy Burns. “I shared my belief I have no interest in going back to normal. I am much more interested in using this opportunity to create our ‘new extraordinary’. I look forward to welcoming the industry back in person to grow a healthier world, which is especially powerful and essential in these times.

This will be the 72^nd year for the expo which in the past has seen the launch of countless new products, new flavors and transformative innovations. The global trade association is currently accepting booth applications on freshsummit.com for all companies interested in exhibiting at the event.

“We are grateful to have such engaged and invested partners who believe in the power of produce and floral,” said PMA’s Director of Events, Jamie Romano Hillegas. “Bringing people together to do business and explore new items, innovations and solutions is a highlight of the Fresh Summit experience. The industry has been resilient, and I know we’re all looking forward to coming together safely and feeling that buzz of the show floor.”

PMA is consulting global and local public health authorities to develop guidelines and protocols. Some of the modifications that have already been made include strategies to control crowd density to enable safe, socially distanced interactions including expanded lounge sizes, adding and increasing the width of main aisles and more.

PMA has also shared that they are finalizing plans for the PMA Foodservice Conference that takes place at the end of July in Monterey.

All available updates, including the booth application, can be found at the event website, freshsummit.com.

CAMP HILL—(February 25, 2021)

Grants are now available through the Pennsylvania Fresh Food Financing Initiative (PA FFFI), a program that invests in new or expanding grocery stores and other healthy food retail outlets in under-resourced communities throughout Pennsylvania.

Several private and public organizations have partnered for this statewide initiative, which is overseen by the Pennsylvania Department of Community and Economic Development, administered by The Food Trust, and supported by program partners Reinvestment Fund, Bridgeway Capital and Community First Fund. The PA FFFI offers one-time grants or loans to food retailers to increase the availability of healthy and affordable food options for residents in under-resourced communities.

“We know that healthier communities create healthier economies, and research shows that the development or presence of a grocery store not only improves access to healthy foods but also creates jobs and stimulates additional investment. That’s why we’re so excited to be stewarding a new round of funding for the Pennsylvania Fresh Food Financing Initiative,” said Mark Edwards, CEO of The Food Trust.

The PA FFFI originally operated from 2004 to 2010, under Reinvestment Fund’s administration and with support from The Food Trust, and funded nearly 90 projects with over $85 million in loans and grants approved in that period. Since the re-launch of the program in the fall of 2018, 22 additional projects in Pennsylvania have received funding from the PA FFFI, with recipients ranging from large-scale grocers in urban areas to smaller neighborhood stores in rural communities.

Sprankle’s Neighborhood Market, a PFMA member, took advantage of the funding last year, for its stores in Kittanning and Saxonburg.

“Feeding our community is the most honorable thing a grocer can strive to do. PA FFFI is the vessel that helps create that opportunity,” said Doug Sprankle, owner of the Saxonburg location.

One-time grants of up to $50,000 are available for eligible projects, as well as additional loans and business assistance. In the past, grants have supported predevelopment costs; land assembly, including demolition and environmental remediation; site development; infrastructure improvement, including renovation; new construction or adaptive reuse; equipment purchases that improve the availability and quality of fresh produce; and innovative food access technology that assists the healthy food access efforts of an existing or new grocery store.

“We represent many members through PFMA who are working hard to deliver fresh food options in low-income communities. These grants through the Pennsylvania Fresh Food Financing Initiative will help our members overcome potential financial barriers as they work to address the need for healthy and affordable food for their customers,” said Alex Baloga, PFMA president and CEO.

For more information on eligibility and how to apply, visit thefoodtrust.org/pafffi. Program partners review applications on a rolling basis and provide financing as funds remain available.

Learn more about PA FFI and its partners by visiting thefoodtrust.org/pafffi/about.

Wakefern Food Corp. recently appointed Neil Falcone as chief financial officer and Karen Meleta as chief communications officer.

Falcone, formerly VP of ShopRite Financial Services (SFS) and corporate finance, replaces Doug Wille, who retired recently after 43 years with the company. Meleta, Wakefern’s VP of consumer and corporate communications for 13 years, is the first to be named chief communications officer for the company.

Falcone started his Wakefern career at Price Rite Marketplace in 2007 before being promoted to director of ShopRite Financial Services. He was promoted to VP of SFS and corporate finance in 2015. Before joining Wakefern, Falcone held leadership positions with Waldbaum’s, A&P and Levitz Furniture. He received his bachelor’s degree from Dowling College School of Business in New York.

He brings significant retail experience to his new role as CFO at Wakefern, where he is helping chart the course for the cooperative’s long-term financial growth and success. Falcone and his Finance team are developing the important tools and technology necessary to deliver leading financial services and analysis for Wakefern members and supermarket banners.

In her new role, Meleta will continue to oversee all aspects of Wakefern’s communications, public relations and reputation management. She also drives stakeholder messaging across internal communications, public policy, sustainability, corporate philanthropy, media relations, crisis communications and government affairs. Meleta has spearheaded company sustainability efforts, with special focus on developing programs to reduce food waste at retail as well as creating seafood sustainability and animal welfare guidelines.

Another key initiative under her guidance is ShopRite Partners In Caring, ShopRite and Wakefern’s signature hunger-fighting initiative, and she has helped raise the profile of that important program over the years through innovative and impactful cause marketing campaigns.

Meleta has been with Wakefern Food Corp. for more 20 years. Prior to joining Wakefern, she was a communications consultant to Fortune 500 companies including Unilever, Parke-Davis, Lancome and the Home Shopping Network. She also spent nearly a decade at Avon Products, Inc. She received a bachelor’s degree from New York University and holds an MBA from Rutgers University.

Over the past seven years, supermarkets that operate in-store pharmacies have struggled with profitability and customer counts  as third-party organizations (PBMs – pharmacy benefit managers), prescriptions delivered by mail and lack of expanded services (in-store clinics, increased patient  counseling) and reimbursement issues have adversely impacted their businesses.

So, it wasn’t totally surprising that Wakefern Food Corp. announced on January 25 that it would be closing pharmacies at 62 ShopRite stores in New Jersey, New York, Pennsylvania, Connecticut, Delaware and Maryland. At presstime, almost all 62 stores have been closed with several retailers telling us they plan to repurpose those vacated areas into new platforms including broader spaces for the company’s “ShopRite From Home” e-commerce platform, foodservice offerings featuring well-known local brands and an expansion of beer &wine departments (where st te law allows). In a related  announcement, national drug chain leader CVS said it would acquire the customer prescription files for those 62 units. Neither side disclosed the price paid for those files.

ShopRite will remain in the supermarket pharmacy business as 147 other ShopRite units will continue to operate pharmacies. Those stores will continue to act as a provider of COVID-19 vaccines. Sources told us that ShopRite’s decision to close more than 40 percent of its pharmacies was made strictly on pharmacy volume and profitability.

While Wakefern did not disclose how many pharmacists are affected by the announcement, clerks (unionized jobs) will be offered positions at their current or nearby ShopRite stores. As for the pharmacists and technicians, CVS said that they will have an opportunity to interview with the Woonsocket, RI-based chain.

Most of the ShopRite pharmacies that will close are located less than a mile from an existing CVS store.

Several sources told us that CVS and parent firm Wakefern had been in discussions for about a year and ShopRite members had the option of selling the scripts to CVS or keeping their pharmacies open. We’re told that the price that CVS offered was based on a formula centered around number of prescription files per store.

“This isn’t just a ShopRite problem, it’s an entire supermarket industry problem and also impacts other retailers who operate drug stores that don’t have thousands of stores or control a PBM,” said one retailers whose been impacted by declining pharmacy sales. “Every year, our sales and profits decrease because we’re at the bottom of the totem pole. We just don’t have the proper scale to compete effectively anymore and now that Amazon is entering the business it’s only going to become more difficult.”

The closed pharmacy locations are: East Harford, CT; New London, CT; Norwich, CT; Wallingford, CT; Waterbury, CT; Bear, DE; Wilmington, DE (3-Rocky Run Pkwy.; Newport Pike; S. Walnut St.); Silver Spring, MD; Bayonne, NJ; Belleville, NJ; Brooklawn, NJ; Carteret, NJ; Cherry Hill, NJ (2-Marlton Pike; E. Evesham Rd.); Emerson, NJ; Hackensack, NJ; Hillsdale, NJ; Hoboken, NJ; Jersey City, NJ; Kearny, NJ; Lodi, NJ; Lyndhurst, NJ; Moorestown, NJ; North Bergen, NJ; Northvale, NJ; Oakland, NJ; Palisades Park, NJ; Passaic, NJ; Wallington, NJ; Wayne, NJ; West Milford; NJ; Chester, NY; Garnerville, NY; Hauppauge,NY; Kingston, NY; Middletown, NY; Mohegan Lake, NY; New City, NY; New Rochelle, NY; Plainview, NY; Poughkeepsie, NY; Stony Point, NY; West Nyack, NY; White Plains, NY; East Norriton, PA; Eddystone, PA; Glenolden, PA; Fairless Hills,  PA; Hatfield, PA; Philadelphia, PA (7 – N. 52nd St.; E. Olney Ave.; Fox St.; Island Ave.; Oxford Ave.; Ridge Ave.; Roosevelt Blvd.) Yardley, PA. According to the National Association of Chain Drug Stores (NACDS), supermarkets account for 14 percent of retail  pharmacy prescriptions and the number of grocery stores that operate pharmacies has declined in each of the past three years.

Two years ago, Shoppers Food, a unit of UNFI and based in Bowie, MD closed all 30 of its pharmacies (and sold the scripts to both CVS and Walgreens). Last year,  regional grocer Lund & Byerlys, based in Minneapolis, MN, closed all 14 of its pharmacies (selling the scripts to Walgreens) and in 2015, CVS assumed control of more than 1,600 pharmacies at Target Stores, paying $1.9 billion for those locations.

If you believe there is strength in numbers, then the announcement that the two largest Upstate New York-based chains – Price Chopper (Market 32) and Tops Markets – have agreed to merge should be a positive and encouraging piece of news.

While the two regional chains, one based in Eastern New York (Price Chopper is headquartered in Schenectady) the other in the Western part of the Empire State (Tops is based in Williamsville), have each had their struggles in recent years, trade observers expressed confidence that a blending of the two retailers will give the combined organization greater leverage and scale in a very competitive and changing marketplace.

Several sources said that talks between both parties have been ongoing for about a year but began heating up late in 2020. As for the details: Scott Grimmett, Price Chopper/Market 32’s president and CEO, will be the new chief executive and serve on the board of directors of the new entity which will oversee the operations of the 292 Price Chopper, Market 32, Market Bistro and Tops Markets stores and collectively employ more than 30,000 associates. Our research indicates that annual sales at Tops are approximately $2.6 billion and $3.6 billion annually at Price Chopper. Financial terms of the deal were not disclosed.

Frank Curci, Tops Markets’ chairman and CEO, will become a board member of the newly created company and also serve as a consultant to assist in the transition.

Blaine Bringhurst, Price Chopper/Market 32’s executive VP of merchandising, marketing and store operations, will lead the Price Chopper/Market 32 business. John Persons, Tops Markets’ president and COO, will lead the Tops Markets’ business.

The new parent company will be headquartered in Schenectady, NY. The Price Chopper/Market 32 and Tops Markets businesses will retain main offices in Schenectady and Williamsville and will continue to be managed locally by their respective leaders.

“This merger marks a major step forward and collectively elevates our ability to compete on every level,” said Grimmett. “It leverages increased value for our customers; advances shared opportunities for innovation; fortifies the depth of our workforce, community and trade partnerships; and ultimately accelerates our capacity to deliver a distinctively modern and convenient shopping experience. Given the vital role that supermarkets and their workforces play in our communities, particularly this past year, I am excited to lead the parent company of these two historic grocery retailers.”

“We have long believed that this merger makes sense both strategically and based on the similar ways in which we each put customers first, go to market and treat our people,” said Curci. “We look forward to working closely with the Price Chopper/Market 32 team and together becoming an even stronger competitor with more scale, as we continue serving our customers and communities.”

In a message sent to Top’s “valued business partners,” Curci noted: “I am reaching out following the announcement that Tops Markets has agreed to merge with Price Chopper/Market 32 to make sure you understand what we announced and what it means for you. I want to assure you first and foremost that it is business as usual at Tops. We are continuing to work with you like we always have, and we are relying on you to continue supporting our programs. Your day-to-day contacts remain the same, and we expect a seamless transition for our suppliers. We are excited about what this announcement means for our business partners, customers, associates and communities. As you may know, Price Chopper/Market 32 is based in Schenectady, NY and operates 130 Price Chopper and Market 32 supermarkets and one Market Bistro in markets that are almost perfectly contiguous to ours. The new parent company will be headquartered in Schenectady, NY, and the Price Chopper/Market 32 and Tops Markets businesses will retain main offices in Schenectady and Williamsville and will continue to be managed locally by their respective leaders. This transaction nearly doubles our collective footprint in the Northeast, and the combined operations will include nearly 300 Price Chopper, Market 32, Market Bistro and Tops Markets stores and collectively employ more than 30,000 associates. We have long believed that this merger makes sense both strategically and based on the similar ways in which we each put customers first, go to market and treat our people. By joining forces, our merged companies are expected to be better positioned to compete and offer even more value and outstanding services to customers across the Northeast. While we are announcing the agreement today, we expect that the transaction will be completed in the coming months, subject to regulatory approval and customary closing conditions. Between now and then, and in many respects even after the merger is completed, we will continue to operate separate, independent companies and, as I mentioned, it is business as usual. We will continue to update you with additional information as we move forward. As always, if you have any questions, please reach out to your normal contact. We value our important relationship and we look forward to working closely with you into the future. Thank you for your continued support.”

Neil Golub, currently executive chairman of the board, and who for many years served as the face of Price Chopper, said, “I’ve seen tremendous change in our industry across my 65-year career and have long been an advocate for the promise of innovation and partnership, like that which has driven this merger forward. I can assure you that our commitment to sustaining and improving the communities in which we operate remains steadfast.”

“Tops has always put serving customers and providing an exceptional shopping experience at the center of everything we do, and this merger is no different,” said Persons. “Our associates, who take pride in their work and recognize the importance of the role they play in taking care of customers and communities, will continue to be the backbone of our company.”

The deal is expected to close in the next few months pending regulatory approval. In terms of store overlap, this appears to be a pretty clean deal with the Syracuse area being the highest store cluster of potential concern. Each retailer operates four stores in that Central New York market. The closest stores (within three miles) that could be of FTC interest are two Tops units in Syracuse (Nottingham Road and Shop City Plaza) and one in Dewitt (E. Genesee Street) which all could conflict with a single Price Chopper unit on Erie Boulevard in Syracuse. Other more isolated overlaps can be found in Cooperstown, NY; Cortland, NY; Lake George, NY; Owego, NY; Rutland, VT; and Gardner, MA.

Founded by brothers Bill and Ben Golub in 1932 (as Public Service Market, then later Central Market), Price Chopper/Market 32 currently has approximately 18,000 employees in New York, Vermont, Connecticut, Pennsylvania, Massachusetts and New Hampshire. The stores’ geography ranges from Sutton, MA (Market 32) to Liverpool, NY, a distance of approximately 280 miles on an east-west plane and from Massena, NY to Oxford, CT (Market 32), a distance of approximately 329 miles on a north-south plane.

Tops, whose roots date back to the 1920s, was officially incorporated in 1962 and was run for many years by Armand Castellani and Nino Nanula. It currently operates 162 stores (including five franchised units) in New York, Pennsylvania and Vermont and employs approximately 14,000 associates. The stores cover a wide geography ranging from Hoosick Falls, NY to Erie, PA (405) miles on an east-west plane and from Peru, NY (in the Adirondacks Mountains) to Meadville, PA, a distance of 485 miles on a north-south plane.

Both companies have faced management and financial challenges in recent years. Tops filed for Chapter 11 bankruptcy protection in February 2018, emerging nine months later with reduced debt (by about $300 million) and a more streamlined organization. As part of that reorganization, Tops renegotiated more favorable contracts from its two key labor unions – UFCW One which represents about 10,000 Tops associates at store level, and Teamsters Local 264 which represents approximately 600 warehouse workers and drivers at its distribution center in Lancaster, NY (while that facility is owned by Tops, C&S Wholesale Grocers provides distribution services to Tops’ stores).

In a statement released by Frank DiRiso, president of Oriskany, NY-based UFCW Local One after the merger agreement was announced, the veteran labor leader said: “UFCW Local One members from Tops Friendly Markets are not immune to changing management groups over the past 15 years.  They have certainly been on a roller coaster ride hanging on in fear of what would happen to their job at each management milestone. Through all these changes of management, a bankruptcy and a global pandemic, our members have continued to provide their customers with superior service. Our members at Tops Friendly Markets are essential frontline workers, and as always Local One will continue to fight for our members jobs and their livelihoods.  Our collective bargaining agreements are in full effect, and have years left before they expire.  We will be bargaining with Tops on the Adirondack stores very soon and expect no issues. We will use every legal measure to make sure our members are treated fairly, and we look forward to working with the new management, as we always have, to ensure of members have stable employment.”

In its 2018 company restructure, Tops acquired five new investors who, post-bankruptcy, control more than 70 percent of the company’s $560 million in secured notes. Those investors are: Silver Point Capital, a Greenwich, CT-based hedge fund which holds $157.7 million in Tops’ secured notes; HG Vora Capital, a Manhattan-based hedge fund which holds $92.2 million of secured notes; Boston-based Fidelity Management & Research, part of the huge Fidelity family of mutual funds which holds $63.8 million in secured notes; Column Park Asset Management, another Manhattan-based private equity firm which holds $50 million in Tops’ secured notes; and Signature Global Asset Management, a Toronto-based investment firm which holds $47. 8 million in secured notes.

Several Wall Street sources told us that Silver Point was a key driver which pushed aggressively for the merger agreement to be consummated.

On the other hand, Price Chopper is a non-union retailer where slightly less than 50 percent of its privately-owned stock is controlled by its employees. While the company does not have the same debt issues as Tops, it has sought to find a potential new buyer in the recent past. In 2016, it issued a prospectus for the purpose of exploring a possible sale. Albertsons was interested in purchasing the company but backed away at the 11th hour.

Earlier that year, the company named  its first non-family member, Grimmett, to oversee the day-to-day business. Former CEO Jerel (“Jerry”) Golub was moved to vice chairman (Jerry Golub replaced his second cousin Neil as CEO in 2012). Grimmett originally joined Price Chopper as COO in 2011. Prior to that he had spent more than 35 years with Safeway.

Another difference between the two organizations is that Price Chopper primarily self-distributes to its stores and operates multiple company-owned distribution centers in Schenectady. And as mentioned before, Tops utilizes C&S to distribute its groceries and general merchandise items in a relationship that dates back to 2002.

Deutsche Bank Securities served as financial advisor to Tops while PJ Solomon acted a financial advisor to Price Chopper.

Giant Food announced that Robin Moran will retire after a 40-year career with the retailer.

Moran joined Giant as a part time cashier in 1980 and began her full-time career as a retail trainee in 1983, right out of Towson University.  She was one of the first (if not the first) recipient of what is now the Izzy Cohen Scholarship.  By 1985 she was a deli/dairy manager well on her way to becoming an assistant manager.  In 1987, she was promoted to career development specialist and held that position until she became the learning center training manager in 1997.  In that position, she worked closely with store operations, the distribution center, and the corporate office for six years, ensuring that associates and managers at all levels received optimal training and developmental opportunities.

In 2003, Moran transitioned to the role of performance coach until 2005 and later that year, she pioneered job-sharing at Giant when she and Jodie Kans shared responsibilities for a manager of field training and management development position. She returned full-time in 2006 as the manager of field training and management development and remained in that position until 2009.  In 2010, she expanded her scope and responsibility to become the senior manager of diversity and talent management and held this role until 2012 when she was promoted to her first director position. In 2014 she became division director of human resources, and in 2017, with the Ahold Delhaize merger, she transitioned to director of talent, diversity and inclusion, learning and OD, the multi-faceted position she will held when she retired at the end of January.

Moran implemented numerous brand-specific and global retail and professional development programs at Giant Food.  Beginning in 2017, she also led an aggressive talent acquisition effort to stand up the merchandising organization and build out corporate functions to support Giant’s great local brand strategy.  She was a Network of Executive Women member and chair for 11 years and named one of Progressive Grocer’s Top Women in Grocery in 2019.

In the announcement of Moran’s retirement, the company said: “Whether it be her encouraging training approach, her leadership at a Network of Executive Women event, or a thoughtful career development conversation, Robin Moran is and always will be known as a key member of the Giant family, a great boss, as well as a dedicated co-worker and caring friend.  One who never missed an opportunity to build a meaningful relationship, Robin leaves a long legacy of helping others make their mark at Giant Food for four consecutive decades.”

Cipriano “Cip” Andrade has accepted the role of category director of DSD. Most recently, Andrade was the director of center store field marketing. He brings a wealth of knowledge and experience to his new role. He began his career with Stop and Shop in 1999 as a customer service manager trainee and joined Giant Food in 2006, advancing to store manager, sales manager, district director, director of perishables, director of deli bakery sales and merchandising.

Tonya Herring, SVP of merchandising, said, “We are excited he has accepted this responsibility where he can continue to bring tremendous value to the merchandising organization and Giant Food.”

Gregory Bibbs has accepted the role of director of center store field merchandising.  Bibbs returns from an assignment as special projects merchandising director working with other Ahold Delhaize brands and Giant to set a vision for the various procurement processes and the overall Advantage program in coordination with merchandising, marketing, store operations, supply chain, finance, AP, strategy and HR. Prior to that role, he was director of the non-food category.

Bibbs began his retail career with the National Zoo, Care Drug and Toys R Us, and later joined Giant Food in 1998 as an assistant store manager.

Rosalind Brewer has been named CEO of Walgreens Boots Alliance, replacing outgoing CEO Stefano Pessina. Brewer’s appointment will be effective March 15 when Pessina transitions to the role of executive chairman. Brewer will also join the WBA board of directors upon assuming her new role.

Brewer brings to WBA a proven track record of leadership and operational expertise at multi-national corporations, with deep experience in strategic development, marketing, digital transformation and loyalty, innovation and technology, supply chain and store development. She most recently served as COO, group president and member of the board of Starbucks.

Prior to joining Starbucks, Brewer served as president and CEO of Sam’s Club, the members-only warehouse channel of Walmart Inc. While there, she successfully grew membership, transformed merchandise and amplified the use of digital technology to enable a seamless shopping experience at scale, which led to sequentially improved comp sales.

“The board conducted an extensive search to identify an exceptional leader who will build on WBA’s track-record of success and take advantage of the many growth opportunities in many markets across the company. We are excited to have found that person in Roz,” said Pessina. “She is a distinguished and experienced executive who has led organizations globally through periods of changing consumer behavior by applying innovation that elevates customer experiences – ultimately driving significant and sustainable growth and value creation. Her relentless focus on the customer, talent development, operational rigor and strong expertise in digital and technological transformation are exactly what WBA needs as the company enters its next chapter. I look forward to working with Roz, and to continuing to partner with Jim and the entire board and management team to take our company forward.”

“WBA is a world-class and trusted organization whose purpose I deeply admire,” said Brewer. “The healthcare industry is constantly evolving, and I am excited to work alongside the entire WBA team as we deliver further innovation and positively impact the lives of millions of people around the world every day. This is especially true today as the company plays a crucial role in combatting the COVID-19 pandemic. I step into this role with great optimism for the future of WBA, a shared responsibility to serve our customers, patients and communities, and a commitment to drive long-term sustainable value for shareholders.”

In the business world nobody makes news like Amazon. But even by its own peripatetic standards, the first few weeks of 2021 have been particularly busy for the world’s largest ecommerce company.

The biggest Amazon bombshell would be its most recent – on February 2, Jeff Bezos announced that he would step down as CEO of the company he founded in 1994 and will become executive chair. Replacing him will be Andy Jassy, currently chief executive of Amazon Web Services (AWS), the Seattle-based firm’s most successful business unit. The change is planned for the company’s third quarter.

Bezos said that he will stay engaged in important Amazon initiatives but wants to spend more time and energy on other areas, including the company’s Day 1 Fund that supports non-profits; the Bezos Earth Fund that focuses on clean energy and environmental equity; creating human spaceflight with Blue Origin; and The Washington Post, which Bezos purchased in 2013 for $250 million.

Jassy went to work at Amazon after graduating from Harvard Business School in 1997. Shortly after joining, Jassy took on the highly coveted role of technical assistant at Amazon and held the title for 18 months. He then held a variety of posts as the company grew and eventually laid the foundation for Amazon Web Services, the cloud computing business. The cloud business generated $45 billion in sales last year, up 30 percent from a year earlier.

The Bezos-Jassy announcement marks the second major executive transition at the company in the past year. Last August, chief executive of Amazon’s consumer business Jeff Wilke announced that he would retire in early 2021 after more than 20 years with the company. Dave Clark, who ran the company’s fulfillment and logistics operations, was promoted to replace him.

The Bezos announcement dovetailed with another robust financial performance. In its fourth quarter, ended December 31, net sales increased 44 percent to $125.6 billion, compared with $87.4 billion in the fourth quarter of 2019. Net profit for the quarter increased to $7.2 billion, compared to $3.3 billion a year ago.

Amazon’s 2020 net sales increased 38 percent to $386.1 billion, compared with $280.5 billion in 2019. Net income increased to $21.3 billion, compared with net income of $11.6 billion in 2019.

Amazon’s subscription service revenue, which includes Prime fees, grew 35 percent in 2020 compared with the previous year, to top $25 billion.

Meanwhile on the battle lines (Amazon’s fulfillment centers), employees at an Amazon.com warehouse in Bessemer, AL, began receiving ballots February 8 from the National Labor Relations Board (NLRB) to vote on whether or not to be represented by the Retail, Wholesale and Department Store Union (RWDSU). According to a New York Times report in January, more than 2,000 workers at the facility signed cards calling for a vote to unionize. Voting will continue through March 29.

And unlike most attempts to organize, wages and benefits are not the primary issues confronting Amazon. The big merchant already pays a starting wage of $15.30 an hour at its facility located near Birmingham which employs nearly 6,000 associates. It also offers dental, medical and vision insurance as well as a retirement plan and additional benefits.

However, employees complain that their job performance evaluations are based on unrealistic company-determined goals.

Regardless of the outcome of the vote, Alabama is a right-to-work state, so even if a majority votes to be represented, workers will still have the option of not joining the union. A Wall Street Journal report said that some workers it interviewed said they would likely not join the union.

Amazon has asserted that if workers do vote to join, membership will essentially take money out of workers’ pockets in the form of union dues. RWDSU’s organizing efforts have placed more focus on making Amazon workplace conditions based more on “respect and dignity.”

Some industry observers believe that if associates at the Bessemer distribution center vote to be represented by a union, that could have a ripple effect at Amazon facilities across the country, especially in light of the many complaints by Amazon workers during the COVID-19 epidemic of unsafe workplace conditions.

And there’s more negative Amazon news. On February 2, the Federal Trade Commission (FTC) announced that Amazon has agreed to pay $61.7 million to settle charges that it withheld tips to delivery drivers for nearly three years. The FTC said that Amazon secretly lowered hourly wages for Flex delivery drivers and used customer tips to cover for the lower pay. According to the FTC, Amazon promised its Flex drivers that they would receive 100 percent of all customers’ tips. But, starting in 2016, Amazon lowered hourly delivery wages, which were advertised at $18 to $25 per hour, without disclosing the changes to its drivers. Additionally, it tried to mask the lower wages by using customer tips to cover the difference, essentially meaning that workers received smaller overall take-home pay, said the agency.

Ultimately the Flex drivers noticed the compensation reductions and began to complain, leading Amazon to abandon the practice in 2019, after it became aware that the FTC was investigating it. The company settled without admitting wrongdoing.

“Rather than passing along 100 percent of customers’ tips to drivers, as it had promised to do, Amazon used the money itself,” said Daniel Kaufman, the acting head of consumer protection at the FTC. “Our action today returns to drivers the tens of millions of dollars in tips that Amazon misappropriated and requires Amazon to get drivers’ permission before changing its treatment of tips in the future.”

Flex workers are classified by Amazon as independent contractors and often use personal vehicles for deliveries of the company’s Prime Now and AmazonFresh items. Customers can tip delivery drivers on the checkout page.

The FTC’s investigation is part of growing scrutiny by the federal government of the treatment of contract workers, who are a growing portion of the workforces of big tech companies such as Amazon, Google and Facebook.

More locally, Amazon submitted plans seeking county approval for the second phase of development for its Arlington, VA (Crystal City) headquarters (HQ2).

Highlighting the plans is a futuristic 350-foot-tall building modeled after a double-helix that will serve as the centerpiece of a $2.5 billion headquarters campus that Amazon said will emphasize sustainability, featuring environmentally friendly buildings that maximize natural light and eventually would rely entirely on solar power for energy (employees would be able to open windows if they want).

More than three years after Amazon announced it would expand beyond its current Seattle headquarters, construction at the Virginia site is well under way. Dubbed Pen Place, the newly unveiled proposal for the second phase of the plan will provide an additional 2.8 million square feet of office space in three 22-story buildings.

The site’s focal point will be “The Helix,” a tree-covered glass structure where a series of “alternative work environments” will be set amid indoor gardens and greenery. According to NBBJ, the architectural firm behind the project, a spiral “hill climb” will allow employees and visitors to ascend the outside of the structure. “The Helix” will be open to the public occasionally, but other parts of the campus are intended for regular use by the community.

The new proposal includes 2.5 acres of public space across the Potomac River from Washington, DC containing art installations, communal grassy areas and a 250-seat amphitheater. Outdoor plazas will host mobile food vendors and farmers’ markets while retail space will include shops and restaurants at ground level.