MMR: Mass Market Retailers, April 22, 2019

MMR IRI HBC Report 2019 Page 21 VOLUME 36 NO 5 WWW MASSMARKETRETAILERS COM APRIL 22 2019 INDUSTRY NEWS Natures Bounty names Kerrigan president page 9 WBA cuts FY 2019 earnings forecast page 11 O T C medicines save U S health care system billions study page 14 Whos Who in CBD company profiles page 83 MINIMUM WAGE RISES Target Corp said it is boosting its minimum hourly wage from 12 to 13 beginning in June The chain has promised to pay all its workers at least 15 an hour by the end of 2020 The company made that vow in 2017 when it raised its minimum hourly wage to 11 Last year Target bumped it up again to 12 Targets new chief human resources officer Melissa Kremer says the pay hikes have been paying off CVS RX DELIVERY CVS Pharmacy said it is now offering prescription delivery within hours in addition to its one to two day prescription delivery service available nationwide The new service provided by Shipt is available at 6000 CVS Pharmacy locations across the country giving patients a faster and even more convenient way to get their medications RETAIL EMPLOYMENT The U S economy added 196000 jobs in March but retail industry employment for the month fell by 11700 jobs seasonally adjusted from February and by 47400 jobs unadjusted year over year according to the Labor Department National Retail Federation chief economist Jack Kleinhenz said the retail numbers likely reflect merchants hesitancy to add to their payrolls given that consumer confidence and consumer spending were both down earlier in the year TURKEY HILL SOLD Kroger Co has reached an agreement to sell its Turkey Hill food manufacturing business to an affiliate of Peak Rock Capital The deal calls for the Peak Rock Capital affiliate to continue operating Turkey Hill which produces a full line of popular iced teas fruit drinks milk frozen dairy treats and a variety of ice cream products MONEY TRANSFERS Dollar General Corp said its customers can now complete Western Union money transfers at its more than 15400 stores The partnership means that people can initiate international and domestic money transfers digitally using the Western Union mobile app or by visiting westernunion com and then pay in person at Dollar General stores Walmart Stores Get Modernized BENTONVILLE Ark Building on its commitment to save customers time and money Walmart in a number of states recently unveiled store opening and remodeling plans including innovative features that will support e commerce growth Walmart expects to spend an estimated 145 million this year in California through the opening and remodeling of 21 stores as well as the launch and continued expansion of several customer focused innovations An estimated 173 million is also being earmarked in Florida for the opening and remolding of 34 locations The retailer also plans to spend about 2649 million for the remolding of 54 stores in Texas Other projects include an estimated 718 million being used in Arizona through the remodeling of 14 stores about 96 million in 19 stores in Indiana around 83 million for 15 stores in Pennsylvania and an estimated 173 million for 34 stores in Florida The company also plans to offer a grocery pickup option This service gives customers the convenience of shopping online and the ease of quickly picking up groceries without having to leave their cars at no additional cost The company said it expects to finish the current year with about 2140 grocery pickup sites nationwide and it plans to boost that number to about 3100 by the end of fiscal 2020 Other improvements call for pickup towers which are 16 feet tall high tech vending machines capable of fulfilling a customers online order in less than a minute once they arrive at the store Promotions For Kroger Executives CINCINNATI Kroger Co is promoting several top executives as the retailer continues to remake its business through its Restock Kroger plan We are making progress on redefining the customer experience and our high performing leaders are determined to maintain that momentum in year two of Restock Kroger and beyond Mike Donnelly the companys executive vice president and chief operating officer said in a statement Each of these promotions is consistent with Krogers track record of strong succession planning and will help ensure we continue driving toward our growth objectives The personnel moves effective May 1 are Mary Ellen Adcock has been promoted to senior vice president of retail operations Adcock joined Kroger two decades ago and has held several leadership positions including human resources manager general manager and regional operations manager She was promoted in 2014 to vice president of merchandising for the Columbus division and became vice president of operations for the same division in 2015 Joe Grieshaber currently president of the Fred Meyer division has been promoted to senior vice president of merchandising Grieshaber joined Kroger in 1983 He was promoted to vice president of merchandising for the Columbus division in 2000 before taking on his role as group vice president of perishables merchandising and procurement at the Cincinnati general office in 2003 Grieshaber was named president of the Dillons division Vivek Sankaran will oversee the retailers network of 20 banners New Albertsons CEO BOISE Idaho Vivek Sankaran president of Frito Lay North America has been hired by Albertsons Cos as the grocery chains new president and chief executive officer The 55 year old Sankaran is replacing Jim Donald who took the helm in September succeeding longtime CEO Bob Miller who stayed on as chairman of the board of directors and will now become chairman emeritus and maintain his seat on the board Donald will continue to serve Albertsons Cos as board co chair with Len Laufer who heads a technology subsidiary of Cerberus Capital Management the private equity owner of Albertsons Cos Sankaran is coming to Boise after a decade with PepsiCo Inc Frito Lays owner He was named chief operating officer in 2016 and promoted to president of Frito Lay North America in December overseeing the companys 15 billion snack food business Sankaran assumes his role at Albertsons Cos on April 25 Vivek has the keen understanding that the front line is directly linked to the bottom line and Im confident he will inspire and engage our 270000 associates across our stores support offices manufacturing facilities and distribution centers Donald said in a statement Sankaran earned a masters degree in business administration from the University of Michigan a masters in manufacturing from the Georgia Institute of Technology and a bachelors in mechanical engineering from the Indian Institute of Technology Madras in Chennai India It is a great privilege to join a company that has such deep roots in American retail Sankaran said in a prepared statement Albertsons Safeway Vons Jewel Osco Shaws ACME Tom Thumb Randalls United Supermarkets Market Street Pavilions Star Market Haggen and Carrs all of these banners and more in the Albertsons Cos family of stores have hundreds of years of combined history Our stores are integral to the lives of millions of customers each week Im excited to build on the legacies of past CEOs Bob Miller and Jim Donald who both laid a solid foundation for success and look SPOTLIGHT To page 2 To page 2 To page 2 Shopko in Asset Liquidation After Failed Sale GREEN BAY Wis Shopko Stores Operating Co began liquidating its assets last month after it was unable to find a buyer for its struggling retail business The retailer which filed for Chapter 11 bankruptcy protection in January was still seeking to auction off its optical business as this article went to press This is not the outcome that we had hoped for when we started our restructuring efforts said chief executive officer Russ Steinhorst We want to thank all of our teammates for their hard work and dedication during their time at Shopko In February Shopko announced plans to close 250 stores but the company was still hoping to sell off its remaining 120 stores as a viable ongoing business But Shopko was unable to find a buyer and the company wound up canceling an auction that had been planned Instead it enlisted the firm Gordon Brothers to oversee a liquidation process that began in late March The last remaining Shopko stores are expected to close by mid June Shopko operated in 24 Midwestern and Western states The retailer opened its first discount store here in 1962 Founded by Chicago pharmacist James Ruben Shopko was part of a wave of discount department store banners that were launched that year The first Walmart Kmart and Target stores also debuted in 1962