There is no doubt A&P's parent company, The Great Atlantic & Pacific Tea. Co., is struggling mightily. The grocery store operator comes off two quarters where comp store sales were down nearly six and four percent respectively. The company fired its CEO Eric Claus in October and has announced it has found a replacement in Ron Marshall, who recently left Borders after just about a year on a turnaround job there.
The self-styled turnaround artist, Mr. Marshall, has previous experience as CEO of Nash Finch and before that as chief financial officer at Pathmark, now a division of A&P.
At Pathmark, Mr. Marshall was credited with getting the chain's financial house in order. Later at Nash Finch, he took early steps to reduce costs and post a profit. He left the company after several years at a time when the wholesaler and retailer was losing ground to grocery competitors.
"I am very much looking forward to working with Christian (Haub, executive chairman of the company), the Board of Directors and the management team to realize A&P's tremendous strategic potential. I am confident that, together, we will bring A&P back to its leadership position," said Mr. Marshall in a company press release.
Mr. Haub, said in the same release, he was "very excited about the strengths, competencies and experiences that Ron brings to A&P. He will be the key leader in our turnaround... With Ron as our next chief executive officer I am confident that we will realize the tremendous strategic value of the company and capitalize on our leadership position in the Northeast."
Discussion Questions: What challenges must The Great Atlantic & Pacific Tea Company overcome to get the entire company turned around? What are your thoughts on Ron Marshall's ability to enact the types of changes necessary to achieve a turnaround?