On Monday, in my FaceTime commentary, I noted that in a Town Hall presentation at the WAFC convention, Albertsons never really addressed the new realities facing the company in the wake of the collapse of its proposed acquisition by Kroger. I also was expecting some explanation to vendors of the company’s strong line against absorbing any tariff-related cost increases. But that’s not what we got – which surprised and distressed a number of vendors with whom I spoke. I channeled their frustration, and MNB reader Gregory Gheen responded:
You’re asking Albertsons to admit the past as they move to the the future. Are those the same standards you hold an Amazon, Walmart, and Kroger to?
Absolutely. I think pretty consistently over the years.
For the record, I’m not suggesting that Albertsons dwell on the past as much as I am saying that it should have acknowledged reality and talked in a way that was consistent with other messages it is sending in other forums. Maybe treat vendors like actual partners, as opposed to supplicants?
To be clear, before I recorded that video commentary, I talked with a number of folks who expressed the same disappointment that I was feeling. And after it ran – and it seemed like the video was seen by a large percentage of WAFC attendees – nobody I spoke with (and I was approached by a lot of people) said I was wrong.
But I also want to make clear that I am not picking on Albertsons. At least, that’s not my intention, and I have no hidden agenda here. I’m a pundit, and that’s what I do – I call balls and strikes as I see them, and concede that sometimes I’m right and sometimes I’m wrong. In the latter case, I’m open both to criticism and illumination, and willing to change my mind when I find an opposing argument to be persuasive.
On another – but somewhat related – subject, MNB reader Tony Bartys wrote:
It’s seems like grocery companies and convenience stores that are privately held, always deliver better financial results and customer experiences than private companies. Maybe those that own stock in these public companies should take notice and consider that as they push to squeeze the lemon until there is nothing left to give. Then private equity comes in, cleans house, and loads it up with debt and sells it to the sucker public and walks away having the chain in shambles, like Albertsons, for example.
I think that’s entirely fair. I’ve talked about this with CEOs of privately held companies who have had experience in public companies. A common theme is that leaders of public companies often have to adjust their plans and get off track because they have to make their numbers to satisfy the markets. Long-term planning is good, but short-term edification ultimately is more important. In privately held companies, they can stick to the plan and/or make adjustments based on Main Street realities, not Wall Street pressures.
The dismissal of Kohl’s CEO for ethical misbehavior – these things almost always end up being about sex or money, and in his case it was kind of about both (he tried to funnel business to a romantic partner) – added to a disturbing pattern. I commented:
I don’t understand what these people are thinking. They have to know that their actions ethically compromise them and that, if they were to come to light, would result in repercussions. And not just for Buchanan’s career – he only became Kohl’s CEO six months ago, and was the third CEO of the troubled retailer in three years. This almost certainly will set back the company, and could be damaging to the people depending on him for their livelihoods.
When “ethical lapses” are cited, it almost always is about sex or money. But it also is about adults who don’t behave like adults, who don’t have the common sense to know that if they have to hide something, that usually means that it is wrong.
One MNB reader wrote:
Good call on ethical breaches. Adults should know better. Unfortunately these adults have egos that eclipse their conscience, and being publicly shamed is much easier to bear when they’re already being paid millions. What’s it to them if the little people lose their jobs?
In FaceTime yesterday I talked about the Monday general session at the annual Western Association of Food Chains (WAFC), which featured a Capstone presentation from folks who just graduated from USC’s Marshall School of Business’s Food Industry Management Program. The subject was how quantum computing could have a seismic impact on the food business, and MNB reader Larry Della Noce commented:
Your “Quantum Leap” example of dry pasta sales increases driven by a social media recipe reminds me of the time an IBM Watson expert (15 years ago) indicated that some media exposure about Gatorade and bananas helped cure a hangover after Denver Bronco football games and this “Watson” retailer was sending out extra Gatorade and bananas to their stores to capture those “hangover” driven sales.
There must be hundreds of unknown reasons why there are unexpected sales increases. But the social media recipe example is a good one. Knowing the reason is important. The challenge is making sure the most material ones are addressed. The “juice” has to be worth the “squeeze”.
I think it will be – because the pasta example was just one small sliver of what this technology will be able to do.
Coming back to Amazon’s decision not to list the cost of tariffs for items sold on its site, one MNB reader wrote:
If Amazon (Bezos) is too afraid to post the additional cost of tariffs, at the very least, they could in big bold print, show country of origin.
They could. But they won’t. And I think we know why.
You’re right, though. Imagine if the powers that be in the food industry had not objected so vociferously to Country of Origin Labeling (COOL) so many years ago. We might not be dealing with some of these issues now and, as I argued at the time, it would have been a step forward in terms of transparency, traceability and establishing trust.
And finally, reacting to the CBS Sunday Morning piece about Wegmans, one MNB reader wrote:
Quality food, quality employer and quality Community member. Picking the right community to build a new store is a hidden quality. Great story on a great operator.
Totally agree.
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