![]() ![]() From my perch, the Food Lion stores on the Eastern Shore and in Southern Maryland would seem like the units likely to create the most interest. Even Lidl, which would seem to be a candidate “on paper” isn’t a likely suitor, having chosen to build its new network of stores from the ground up. Selling stores in their “tweener” size range (30,000-35,000 square feet) might be challenging, given the over-stored nature of the entire marketplace. Most of the units up for sale are Food Lion locations (43 stores). It shouldn’t be surprising that a total of 83 stores are on the selling block – 71 in the Mid-Atlantic region (including Richmond) plus nine in New England and two in the lower Hudson Valley region of New York. And while the FTC has not officially released its list of stores divestitures, it seems that both retailers are anxious to move the process forward by putting stores on the market that they feel will be deemed geographically conflicting. ![]() ![]() On a larger scale, now that shareholders of both Ahold and Delhaize have approved the merger, it shouldn’t be more than 90 days until the marriage is official. I have a lot of respect for James on many levels, but I can’t even view his comments about Wegmans as being aspirational because, when it comes to effective labor utilization and employee training, Ahold USA isn’t even close to converting realistic aspirations into the level of store execution that Wegmans demonstrates. Show me some passion at store level! Moreover, there simply aren’t enough associates (and store hours) to serve Ahold USA’s consumers effectively, which makes any comparison to Wegmans a non-starter at this point. Morale might have improved somewhat from the awful levels of 18 months ago, but as a group, the store associates at many AUSA stores generally remain a not-happy and/or indifferent bunch. But here’s the dirty little secret that continues to exist under McCann’s 38-month tenure: store labor (hours) and training continue to be substandard by comparison to most retailers, let alone the one iconic merchant whose DNA includes depth of employment at its stores and a stellar associate training program. Let’s give the Carlisle, PA-based organization its due: “Project Thunder” has produced higher ID sales and improvements are very noticeable in those perishable areas where “Thunder” has been implemented. In no way, and I mean that in the most emphatic of terms, should the current state of Ahold USA be compared to Wegmans. However, all formulas contain intangibles and at one point in the video, McCann states that “we’re not setting out to get to the middle…but rather to become a retailer like Wegmans – they (consumers) really, really love to go beyond the functional place to buy groceries – to becoming part of those families’ lives. ![]() McCann also notes that the results are beginning to show signs of success as the $26 billion company has improved sales and earnings in recent quarters. In a recent video that was disseminated to suppliers and some media (including me), McCann reviewed the company’s progress as it continues its journey from “good to great.” The 46 year old British COO emphasizes how the “business wheel” (save money, invest it back, drive ID sales, accrue cash and then reinvest it back into the business) and the “promise wheel” (become a better place to shop, become a better place to work and be a better neighbor) must both work in unison for the “good to great journey” to be effective. ![]()
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