Vol. 2 No. 5
May 2008
The Industry Affairs Review is made possible
by support of:
In This Issue:
CEO Profile: Allan Leighton, Loblaw
GMA Staff Helps Out Hands on DC
GMA Industry
Affairs Group:
Troy J. Beeler
Senior
Manager
Sales & Sales Promotion
Coordinator
Business Development
Jeanne Iglesias
Director
Supply Chain & Technology
Assistant
Supply Chain &
Technology
Brian Lynch
Director
Sales & Sales Promotion
Michelle Marcoot
Director Supply Chain
Assistant
Sales & Sales Promotion
Stephen A. Sibert
Senior Vice President
Industry Affairs
Senior Manager
Industry Performance
Jessica
Welch Intern Industry Affairs
Industry Affairs
Review Team:
Natalie Berg
Grocery Retail Manager
Planet Retail Ltd.
IAR Consultant
Lisa Allen
ALLEN Communications, Inc.
IAR Editor
Wal-Mart Veteran Brings Cost Cutting Skills to Canada’s Largest Retailer
At a Glance
Key Operating Facts
Net Sales 2007
USD $26.65 Billion
Banner Sales 2007
USD $28.2 Billion
Group Net Profit 2007
USD $307 Million
No. of Countries
1
Key Grocery Formats
Hypermarkets, supermarkets and superstores
Number of Stores 2007
1435
Source: Planet Retail Ltd. - www.planetretail.net
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Loblaw's President and Deputy Chairman, Allan Leighton |
With the expansion of Wal-Mart Supercentres in Canada, Loblaw’s is feeling the pressure on pricing – and on the company’s bottom line. So it’s no surprise that Canada’s largest retailer is turning to an ex-Wal-Mart executive to help revitalize the business. In April 2008, Loblaw appointed British-born Allan Leighton as President and Deputy Chairman to replace William Wells, who had served as president since 2006. As part of the management overhaul, President and Chief Merchandising Officer Mark Foote and Executive Vice President of Food Pietro Satriano also left the company. |
Loblaw will need Leighton’s experience as a cost cutter. In 2006, the Canadian company recorded its first annual loss in 19 years. While part of that loss was due to a write-down of its Provigio business, it coincided with the introduction of Wal-Mart’s Supercentre format in Canada. After 60 years as the market leader in a fairly stagnant market, Loblaw has reverted to basics such as improving on-shelf availability, reducing prices and communicating changes to customers as part of its strategy to make the retailer “the best again.”
Wal-Mart can’t be beaten on prices alone – and no one knows this better than Loblaw’s new president. Leighton, 55, has worked at the helm of some of the UK’s largest companies including Mars UK, Asda and the Royal Mail Group. “Allan Leighton is a highly experienced food retail executive, and I look forward to working closely with him to complete the turnaround,” says Loblaw executive chairman Galen Weston.
After graduating from a polytechnic in Oxford, England, Leighton took his first job as a cashier at British bank Lloyds TSB and then joined Mars UK in 1974 as a salesman. He was promoted to general sales manager, Mars UK, in 1987, and later as managing director of its Irish and Portuguese divisions. Leighton’s career really took off in 1992 when he joined Asda as marketing director. During his tenure, he was sent to Harvard on an Advanced Management Program, using his experience to help turn Asda around. In 1996, Leighton replaced Archie Norman as CEO and began preparing Asda for acquisition by Wal-Mart in 1999, when he was made president and CEO of Wal-Mart Europe.
Leighton left Wal-Mart in 2000 and took a variety of high profile appointments as part his strategy to ‘go plural.’ He was appointed chairman of the Royal Mail Group in 2002, where he was credited with reducing losses and facing off damaging strikes. He served as chairman of Bhs until 2007 and retains his position as deputy chairman of department store retailer Selfridges & Co and non-executive director of BSkyB Group.
Leighton has three children and relaxes by running. He is a big sports fan, supporting Leeds football club - where he was once deputy chairman - Leicester rugby and Northamptonshire cricket. Since moving to Canada, he’s become a fan of the Toronto Maple Leaf ice-hockey team.
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Loblaw Supercentre, one of Loblaw’s latest formats |
Industry Affairs News
Industry Performance
GMA-PwC Webcast to Explore Financial Performance in Challenging Economy
While today’s interconnected global marketplace is accelerating input costs for CPG makers, these same variables can be leveraged to create superior performance. That premise will be explored in-depth when GMA and PricewaterhouseCoopers (PwC) team up for a Webcast on Tuesday, June 10 at 2 p.m. to discuss findings of the 2008 annual financial performance report, Achieving Superior Performance in a Challenging Economy. The Webcast will feature report authors and experts from GMA and PwC who will explore key findings and provide analysis for participants. Click here to register for the webcast or contact Brooke Weizmann at bweizmann@gmaonline.org for more information.
Supply Chain and Technology
IS Committee Looks at Changing Role of CIOs
GMA’s Information Systems Committee will explore the expanding and changing role of the Chief Information Officer (CIO) as part of its upcoming meeting, June 17-18 at Hallmark’s facilities in Kansas City, MO. Diamond Management & Technology Consultants (formerly DiamonCluster) will help members explore “the strategic IT organization of the future.” The session will examine how CIOs can serve a leadership role within CPG companies by helping to improve business processes, attract and retain new customers, create new products or services and expand into new markets or geographies. The IS Committee will also hear insights from the 2008 GMA Information Technology Investment & Effectiveness Report. This year’s report revealed that while overall strategic alignment between business and IT has improved, the perceived effectiveness and strategic importance of IT has decreased.
Contact: Alexis Larkin
Logistics, IT Benchmarking Webcasts Set for Early June
Two opportunities to “learn virtually” are right around the corner. The 2008 Logistics Benchmark Report Webcast will take place on June 5 at 1 p.m. EST., with IBM’s Paul Huppertz and Karen Butner providing insights from the logistics benchmarking report. On June 19 at 1 p.m. EST, GMA will host a webcast on the 2008 GMA Information Systems Investment and Effectiveness Survey Report, led by IBM’s Guy Blissett and AMR Research Inc.’s Lora Cecere. The full reports and accompanying white papers will be released in conjunction with both webinars; both will also be available for download after the presentations on GMA’s webpage, www.gmabrands.com. Please contact Alexis Larkin at alarkin@gmaonline.org for more information.
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SmartRevenue is committed to helping consumer goods companies enhance shopper engagement at the point of truth -- the store shelf.
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GMA Staff
Industry Affairs Group Welcomes Staff into New Roles
GMA is boosting its Industry Affairs resources with new changes to the Industry Affairs staff team. Jeanne Iglesias has been promoted to senior director of supply chain and technology and will be responsible for leading the association’s efforts on supply chain and IT issues and for identifying new opportunities to engage the membership in this area. Iglesias will also establish GMA’s new Information Technology Vanguard Group of industry chief information officers who will identify key technology challenges between customers and suppliers. Joining GMA as director of supply chain, Michelle Marcoot will manage GMA’s Logistics and Direct Store Delivery (DSD) Committees and the Supply Chain Vanguard Group, as well as oversee aspects of GMA’s annual ISLD Conference. Marcoot joins GMA from the Corporate Executive Board, where she served as the senior director of member services. Marcoot is a graduate of The George Washington University and holds a B.A. in International Affairs and Russian Language and Literature.
“We’re excited to strengthen our Industry Affairs team with the breadth and depth of experience both Jeanne and Michelle bring,” said GMA Senior Vice President of Industry Affairs Stephen Sibert. “Jeanne has produced record year-over-year attendance in managing our ISLD event, while Michelle brings strong business savvy and management skills from her time at one of the nation’s leading corporate think tanks. We’re fortunate to have them both as part of the GMA Industry Affairs team.”
IA Staff Offers “Hands On” Help to Local High School
Members of GMA’s Industry Affairs team helped make a high school in one DC’s toughest neighborhoods a little brighter this month. Several staff volunteers donned their painter’s gear to participate in the Hands on DC Program, painting stairwells and hallways and removing graffiti at Anacostia Senior High School. Hands on DC conducts an annual citywide work-a-thon to improve the physical condition of Washington, DC public schools; raises funds to support local college scholarship programs; and encourages greater community involvement in the public schools. For more information, please visit www.handsondc.org.
GMA’s Industry Affairs Review has teamed up with consumer research firm NPD Group to provide readers with a monthly snapshot of consumer trends and eating patterns. Check out the latest research in this space each month and visit www.npd.com for more market research.
Breakfast beats lunch and dinner as the meal that delivers the highest nutritional punch.
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June 5 |
GMA Logistics Benchmark Report Webcast
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June 10 |
GMA/PwC Financial Performance Report 2008 Webcast Contact: Brook Weizmann
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June 17 - 18 |
GMA Information Systems Committee Meeting Kansas City, MO Hallmark Cards, Inc. Corporate Offices Contact: Alexis Larkin
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June 19 |
GMA Information Systems Investment and Effectiveness Survey Report Webcast
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June 25 - 26 |
Joint Industry Unsaleables Leadership Team Meeting Chicago, IL Hyatt Rosemont Contact: Troy Beeler
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Sept. 21 - 23 |
Merchandising, Sales and Marketing (MSM) Conference St. Petersburg, FL Renaissance Vinoy Resort & Golf Club Contact: Jessica Martin
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Sept. 22 - 23 |
Joint Industry Unsaleables Management Conference St. Petersburg, FL Renaissance Vinoy Resort & Golf Club Contact: Troy Beeler
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@ Copyright 2007 by GMA, 1350 I Street N.W. #300, Washington, D.C. 20005. All rights reserved. Some content and copyright for specific information are provided and owned by Planet Retail, a leading provider of grocery retail intelligence— www.planetretail.net.
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