Supervalu has named Craig Herkert, currently president and chief executive officer of Wal-Mart's Americas' operations, as its new CEO. Mr. Herkert replaces current CEO Jeff Noddle, who will become executive chairman of Supervalu during the transition.
Mr. Herkert, who has headed up Wal-Mart's operations in Canada, Puerto Rico and parts of Central and South America since 2004, has no set start date with Supervalu.
"As we approach the end of year three of our company's transformation and as I begin planning for retirement, the time is right to lay the groundwork for continuity of leadership," said Mr. Noddle. "Craig Herkert is a talented executive with extensive experience in food retailing and supply chain management. As an integral part of Wal-Mart's senior leadership team, he has demonstrated an ability to create shareholder value and achieve business results."
"The board was looking for a candidate who has both deep retail experience and shares the values that Jeff Noddle and the current executive team have deeply engrained in the Supervalu culture," said Lawrence Del Santo, lead director of the Supervalu's board. "His recent experience leading diverse formats in some of Wal-Mart's fastest growing markets, combined with his previous experience working at Jewel-Osco, Acme Markets and Albertsons, make Craig the ideal executive to lead the company forward."
Robert Summers, an analyst with Pali Research, told Reuters, that Supervalu's move "suggests that the trajectory of the business is still very problematic, but then on the flip side it creates an opportunity for a fresh look at things."
Discussion Questions: What does Supervalu's hire of Craig Herkert say about where the company is at the moment and where it would like to be in the future? Will it become a different company under Mr. Herkert than it has been under Jeff Noddle?