BOISE, Idaho -- Albertson's here last week named Peter Lynch president and chief operating officer, filling a vacancy created nine months ago when Dick King suddenly resigned.
Lynch, most recently executive vice president of operations, was a former Jewel-Osco and Acme executive who joined Albertson's in 1998 as part of its merger with American Stores, Salt Lake City. Last week he promoted four Alertson's executives to a newly formed operations and marketing/merchandising leadership team. Among those is a new executive vice president of marketing, Craig Herkert, who will replace Carl Pennington. Pennington will retire in June, the company said.
Lynch's appointment comes as Albertson's attempts to rebound from difficulties encountered in its $11.7 billion merger with American Stores, analysts told SN. Not only did Albertson's lose King, the American Stores president and chief operating officer who resigned as the companies completed the merger in June. Albertson's also the consolidation has proved more costly and complicated than anticipated.
But the worst appears to be over, said Jonathan Ziegler, a San Francisco-based analyst for Deutsche Banc Alex. Brown, New York.
"They're getting to the point where they are seeing merger expenses decline," Ziegler told SN. "It's mostly rebuilding from here. Things are going to get better."
Lynch and Albertson's senior management will be challenged in the coming year to steer the company through the final stages of integration, said Ed Comeau, retail analyst for Donaldson Lufkin & Jenrette, New York.
"I think they're getting over the hump, but there's still a way to go," said Comeau. "The issue for Albertson's now is twofold: Continuing integration while reaching their near-term goals and, just as importantly, positioning itself properly over the next 10-15 years."
Lynch began his career at Star Markets, Cambridge, Mass., in 1967, eventually serving as senior vice president and general manager. He moved to American Stores in 1995 and served as senior vice president of operations of the Jewel-Osco division, Chicago, and, later, general manager of its Acme division, Malvern, Pa.
Lynch promoted Bob Butler and Roe Cefalo to the the positions of executive vice president, operations. Butler, formerly, senior vice president of merchandising, will be responsible for Albertson's drug store operations as well as the company's Intermountain, Northern California and Northwest regions. Cefalo, former president of the Southern California region, will oversee the Eastern, Midwest, Southern and Southern California regions.
Wayne Denningham, formerly president of the Intermountain region, has been named to executive vice president, merchandising. Denningham joins Herkert, Cefalo and Butler as Albertson's new operations and marketing/merchandising team.
Albertson's also named the following region presidents last week: Dave Simonson, Southern California region; Carl Jablonski, Eastern region, and Shane Sampson, Intermountain region.
