OBAMA ASKS TESCO TO MEET UNION
CHESHUNT, England — Sen. Barack Obama called on Tesco's chief executive officer last week to advise management at Fresh & Easy Neighborhood Markets to meet with the United Food and Commercial Workers Union and other community groups “at the earliest opportunity.” In the letter to Sir Terry Leahy, Obama, the presumptive Democratic Party nominee for president, said he is aware of Tesco's reputation in Great Britain “as a partner to unions. I would hope you would bring those values to your work in America … ensuring that workers are able to exercise their right to organize and work in safe, rewarding environments.” In a statement issued two days after Obama's letter was sent, Tesco said union membership “is a matter of individual choice, and if our people want to join a union, then they can and will.”
SAFEWAY PAYS $2.7M TO SETTLE SUITS
PLEASANTON, Calif. — Safeway here has reportedly agreed to pay $2.7 million to six California counties to settle a lawsuit filed in Napa County Superior Court. According to published reports, the case involved complaints that Safeway had failed to get proper permits for store remodels and hot-food stations; it also reportedly involved pricing and weighing accuracy issues throughout the state. Safeway did not acknowledge any wrongdoing, the reports said. The company also agreed to implement programs to improve the accuracy of its pricing and weighing procedures. Safeway could not be reached for comment.
WHOLESALER GETS LABOR INCENTIVES
FRANKLIN PARK, Ill. — Central Grocers here will receive $3.9 million in incentives from Illinois to relocate its distribution center from here to Joliet, Ill., the company said. Jim Denges, chief executive officer of Central Grocers, told SN last week that the incentives include a training grant and “a nice incentive for hiring new employees.” As previously reported, Central recently agreed to merge with Certified Grocers Midwest and relocate to a larger facility. Denges said the 920,000-square-foot warehouse in Joliet should open by April 2009.
AG NEW ENGLAND POSTS 12.5% GAIN
MANCHESTER, N.H. — New retail customers, along with increased sales from existing retailers, helped Associated Grocers of New England here post annual sales of $315 million in fiscal 2007, the member-owned cooperative wholesaler said. Sales increased by $35 million, or 12.5%, for the year, with new customers in Maine and Massachusetts contributing to the increase, Michael Bourgoine, president and chief executive officer, said in a statement.
INFLATION COULD LINGER: HERTEL
ELMWOOD PARK, N.J. — Food-price inflation could be much more severe and more prolonged than many people are now predicting, according to a presentation last week by the Food Institute here and consulting firm Willard Bishop, Barrington, Ill. “We don't think a quick retreat is likely,” said Jim Hertel, managing partner at Willard Bishop, during the “Future of Food Retailing” webinar. Citing “structural changes” in supply and demand, he projected that inflation would be a major force in the food retailing industry for the next three years, putting pressure on poorly positioned operators and causing market-share volatility as weaker players succumb. He cited the importance of multi-tier private-label programs as part of a solution.
