Wal-Mart Vet to Take Over as Supervalu CEO
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?
- Supervalu Names Craig Herkert Chief
Executive Officer – Supervalu Inc. - Supervalu
names Wal-Mart int’l executive CEO – Reuters - Supervalu’s
new CEO comes from Wal-Mart – Minneapolis Star Tribune - Supervalu Taps Head Of Wal-Mart
Americas Ops As Next CEO – Dow Jones Newswires/The Wall
Street Journal
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4 Comments on "Wal-Mart Vet to Take Over as Supervalu CEO"
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One of Supervalu’s biggest problems is retail operations. They just never figured out how to run corporate stores. Sure, in Minneapolis they are successful, as is Target, but that’s mostly due to hometown loyalty rather than skillful marketing.
Supervalu has been closing retail locations by the bushel now for the past several years. Then buying the problematic Albertsons stores hasn’t worked out well. When a mediocre retailer buys mediocre stores at a premium price, we all know how that turns out. We will probably see a big shake up with the departure of most of the senior management. It’s only natural that a new CEO will want to surround himself with the people he feels the most comfortable with.
A new CEO doesn’t solve all the problems, but a solution for operational problems is a good place to start. Without efficient (meaning timely and economical) operations for a retailer, none of the other problems can truly be solved.
Pick your retail channel. Most retailers are merchants. They focus on the store, the displays and the price. Very few retailers really focus on efficient operations. There is no doubt that operationally Wal-Mart is the best in the world. Nobody approaches their ability to turn inventory and that single measure sets them apart.
Perhaps Wal-Mart isn’t great with format or promotions, but a company like Supervalu ought to be able to find some talent to help solve those needs.
Will this be a different company? It better be! What is their alternative?
Jeff’s ready to head out, plain and simple. As a friend of a family member (Allan, his older brother), I got a feel for preferences, and that would include an element of pleasure before bidness. Go have fun, Jeff. Your extremely positive legacy will never be questioned. WalKert will probably do a great job.