Food Lion CEO Out in Revamp

Food Lion CEO Out in Revamp

“Delhaize seemed to be in need of somebody who is experienced in change management and restructuring, given relevant issues Delhaize has to deal with.” — Patrick Roquas, analyst, Rabobank

SALISBURY, N.C. — Beth Newlands Campbell has been named to succeed Cathy Green Burns as president of Food Lion as part of a major shakeup under the new leadership at Delhaize America.

Just two months after taking over as chief executive officer of Delhaize America [4], Roland Smith, the West Point grad who previously ran the Wendy’s and Arby’s fast-food chains, removed Green Burns from her post atop the struggling Food Lion banner, along with Mark Doiron, who had been chief supply chain officer at Delhaize America.

Newlands Campbell, a longtime executive at Food Lion sister chain Hannaford Bros., has been charged with taking over the revitalization effort at Delhaize’s largest chain.

Brad Wise, who had been senior vice president of human resources for Delhaize America, was named president of Hannaford, succeeding Newlands Campbell, and also of Sweetbay, where he succeeds Mike Vail, who was named to succeed Doiron as chief supply chain officer for Delhaize America.

Read more: Delhaize Names Smith New U.S. CEO [5]

The changes were made “to provide greater clarity of responsibility and accountability, and improve results across the organization,” Delhaize said in a statement.

In addition, Greg Amoroso, formerly senior vice president for the business service center and sustainability, was named chief financial officer of Delhaize America, and David Criscione, formerly senior vice president of strategy, marketing and business development, Hannaford, was named chief strategy and development officer, Delhaize America.

Analysts had said they expected significant changes under Smith, who joined Delhaize in October to succeed longtime Hannaford executive Ron Hodge, who is retiring as Delhaize CEO.

“Delhaize seemed to be in need of somebody who is experienced in change management and restructuring, given relevant issues Delhaize has to deal with,” said Patrick Roquas, an analyst with Rabobank, Amsterdam, who follows Delhaize America’s Brussels-based parent company, Delhaize Group.

Food Lion has been struggling to drive sales gains amid a sluggish economic recovery in the Southeast and increasing competition. Recently it had been rolling out market-by-market “rebranding” efforts that included sharper pricing and an increased focus on perishables quality.

EDLP Focus

Last month it unveiled yet another tweak to its strategy when it said it would seek to focus more on everyday low pricing rather than promotions.

Pierre-Olivier Becker [6]

“We want to change the mix of how we present ourselves with prices, with a reduced mix of promotions to increase the more competitive everyday shelf prices across the whole assortment,” Pierre-Olivier Becker [6], president and CEO of Delhaize Group [7], told analysts in a conference call discussing third-quarter financial results.

The company reported that its U.S. sales declined 2.4% in that quarter, with comparable-store sales down 1.6%, the latest in a string of sales declines in the past year. In addition, U.S. operating profits fell 12.3% to $219 million in the quarter.

Like several other executives that have led Food Lion and Delhaize America, Green Burns had started her career at Hannaford Bros. She joined Food Lion in 2002, and she had been named president in 2010.

Read more: Delhaize Taps CFO to Lead New Division [8]

Newlands Campbell joined Hannaford as a retail management trainee in 1987. She also worked on the team that launched the Hannaford brand.

Delhaize noted that Meg Ham will remain president of Bottom Dollar Food; Linn Evans will remain senior vice president of legal and government affairs for Delhaize America; and Deborah Dixson will remain chief information officer for Delhaize America.

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