Nash Finch found plenty of detractors in years past. But more recently, the grocery wholesaler has changed its approach and that has enabled it to prosper during an economic downturn even as larger rivals struggle. In fact, the turnaround at Nash Finch is so complete that the company's CEO is looking to build on its organic growth through strategic acquisitions.
David Livingston, principal at DJL Research and RetailWire BrainTrust member, was one of those who criticized Nash Finch in the past, particularly its former chief executive Ron Marshall.
Mr. Livingston told the Minneapolis Star Tribune that current CEO Alec Covington has the company on course. "He has realistic goals and realistic ideas."
"We continue to make good progress in debt reduction, working capital improvement and cost containment," Mr. Covington said in a press release to announce the company's second quarter results. "As we previously announced, we delayed some of our non-essential 2009 capital expenditures to ensure we attain our goals for free cash flow to net asset returns. In the second half of 2009, we will continue to focus on attracting new food distribution customers, improving the productivity in our warehouse operations and converting the final GSC military warehouse onto our standard suite of military systems."
Discussion Questions: What is different about Nash Finch today compared to a few years back? Is now a good or bad time for Nash Finch to be looking to grow through acquisitions?