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Fresh Market shakeup surprises analysts, displeases investors

The sudden departure of Fresh Market CEO Craig Carlock took some analysts by surprise but they said it didn't necessarily portend a crisis at the upscale specialty retailer.

Jon Springer, Executive Editor

January 13, 2015

3 Min Read
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The sudden departure of Fresh Market CEO Craig Carlock took some analysts by surprise but they said it didn’t necessarily portend a crisis at the upscale specialty retailer.

As reported by SN Monday, Carlock, a 15-year veteran of the company and its CEO since 2009, resigned as CEO and from the company’s board of directors. EVP and COO Sean Crane was named interim CEO while the company launches a national search for a successor. That represents a bit of a change for The Fresh Market which historically has hired its leaders from within.

Craig Carlock

“It seems unusual to us that someone with as much history with the company as Mr. Carlock would leave without grooming a successor,” Chuck Grom, an analyst following The Fresh Market for Sterne Agee, said in a research note. Grom noted that Carlock was admired by Ray Berry, the company’s founder and board chairman, whose family still holds a large stake in The Fresh Market.

Berry in a statement praised Carlock for his role in taking the company public, and helping it to post increases in sales and earnings during his tenure. He also stressed that the company was maintaining its sales and earnings forecast for the fourth quarter, although stock was down by more than 10% early Tuesday.

Although the departure was sudden, it may have been in the works for months, according to Kelly Bania, an analyst for BMO Capital Markets. In a research note published Tuesday, Bania said the change indicated the board may look to move more aggressively on plans to enhance shopper frequency through marketing initiatives Carlock detailed in a presentation last fall.

Although there was some industry speculation that Carlock could turn up at Jacksonville, Fla.-based Bi-Lo Holdings, which said last week its CEO had stepped down, sources told SN Tuesday that such a scenario was unlikely.

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Carlock joined The Fresh Market as its director of marketing strategy in 1999 following several years as a financial executive with Proctor & Gamble. He was appointed to succeed Brett Berry as CEO in 2009, and took the company public in 2010. Carlock’s tenure included a failed effort to expand the brand to California, where its three stores closed last year and triggered the current strategy of expanding in existing markets.

Crane has served The Fresh Market since 2000 when he joined as corporate controller. He was promoted to COO in 2012.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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