Blog Archives

Fairway Market founder announces retirement

Howard Glickberg, who took his grandfather’s fruit and vegetable stand on 74th and Broadway in New York City and built it into the iconic Fairway Market, with 15 locations across the tri-state New York/New Jersey/Connecticut region, will retire from the company effective immediately.

The announcement was made by Jack Murphy, Fairway Market’s chief executive officer, who added that Glickberg would remain on the company’s board.

“Howie has been indefatigable and indispensable to Fairway’s growth over the past four decades,” Murphy said in press release. “It was his vision to bring together the corner butcher, bakery, cheese monger, fish market and farmer’s market all under one roof, and add in an unparalleled selection of traditional, specialty and organic groceries at the best prices. All this has brought Fairway iconic status and enabled the company to truly earn the moniker ‘Like No Other Market.’”

Glickberg, who began unofficially working at Fairway as a child when he would accompany his father to the original 74th St. and Broadway location, and then officially while a college student, said it was simply time to step down.

“I’ve dedicated the past 40 years of my life to building the world’s greatest food store,” Glickberg, 67, said in the press release. “It’s been my life’s work 24 hours a day, seven days a week. In the past when I would take a little vacation, I would somehow wind up visiting a supermarket. And if I saw an apple out of place I would fix it. So I’ve never traveled anywhere without Fairway on my mind.”

Glickberg noted that his grandfather, Nathan, would be “amazed” and “proud” that the “small fruit and vegetable stand he opened more than 80 years ago has evolved into a company that is beloved by so many people across the tri-state region.”

Glickberg said he shares Fairway’s success with the “tens of thousands of dedicated employees and the millions of dedicated customers” with whom he has had the pleasure of working and serving the past four decades, and stressed that “without all of them, Fairway would not have become the icon that it has.”

Glickberg began his full-time involvement with Fairway Market in 1974 — six years after he graduated from C.W. Post College and after a stint as a stockbroker and a part-time staff member at a fish market. In 1975, to build the company, he partnered with David Sneddon and Harold Seybert. They began adding specialty items, expanding the space and emphasizing fresh fruit and vegetables that is at the core of all Fairway Markets.

For the next three decades, he and his dedicated team helped to make Fairway Market an icon in New York City and the food store with the highest volume per square foot of any in the country. When he decided to open a store in Harlem, he “ignored anyone who said he was crazy,” believing that high quality merchandise at the best prices is what every consumer wants. Fairway was welcomed into its neighborhood in 1995, where it continues to thrive.

Locations in Plainview, Long Island and Red Hook, Brooklyn, followed over the next several years, before Sterling Investment Partners acquired a controlling interest in the company and infused it with capital in order to facilitate greater expansion. There are now 15 Fairway Markets and three Fairway Wine & Spirits locations.

Glickberg said he is “especially proud that we’ve always been more than just a grocery retailer. We’ve always been — and I know we will always continue to be — a friend, a neighbor, a family.”

He pointed to Fairway’s commitment to supporting charitable organizations in the neighborhoods in which the stores are located, as well as its ongoing programs benefiting police, fire and military personnel.

Glickberg said his proudest moments came in the wake of the 9/11 tragedy, when Fairway provided food and meals to first responders for at least a month, and following Hurricane Sandy when, despite its own Red Hook store being destroyed, Fairway donated truckloads of food and prepared thousands of free Thanksgiving and holiday meals for displaced families, and kept all 300 Red Hook Fairway employees on staff by providing free transportation to other Fairway stores.

Glickberg and Fairway Market have earned accolades and awards along the way including Entrepreneur of the Year from Deloitte & Touche, Business of the Year by the Westside Chamber of Commerce, Top 50 Influential Businessman in NYC by Crain’s, Top 50 Retailer by The Gourmet Retailer, Outstanding Specialty Food Retailers from Specialty Food, and Consumer Deal of the Year by M&A Magazine. Fairway was also listed on Inc.’s top 5000 fastest growing private companies for 2008, 2009, and 2010.

The Produce News | Today’s Headlines – The Produce News – Covering fresh produce around the globe since 1897.

Investors abandon Fairway after Q2 loss widens

Stock in Fairway Group Holdings was down by nearly 10% Friday, after the retailer reported a wider than expected quarterly loss and suspended financial guidance as a rebuilding commences under new CEO Jack Murphy.

Murphy, who was appointed to his role in September, in his first remarks to the financial community late Thursday said it was too early on to remark on specific strategies but intended to craft “very detailed marketing and merchandising plans” focused on improving same-store sales and enhancing processes for the New York-based specialty retailer. “There’s a lot of work to do here at Fairway, but there’s also a tremendous amount of opportunity,” Murphy said. He did not take questions from analysts.

As reported previously, Fairway’s sales in the second quarter improved by 5.9%, but comps were down by 3.9% as a result of new competition — in particular a Brooklyn Whole Foods store affecting sales at Fairway’s Red Hook store — and losses mounted to $ 17.2 million as a result of price investments, inflation that was not passed along to shoppers, and increased shrink. Earnings and revenue were below analyst predictions.

Ed Arditte, co-president and CFO, said, “We’re actively reviewing all operational activities in the company and we believe that halting guidance is the appropriate action for us at this point.”

Fairway stock closed Friday at $ 2.46 per share, down by 9.56%, its lowest close since it began trading in April 2013.

Supermarket News

Fairway names Murphy CEO

Fairway Group Holdings on Friday said it has appointed Jack Murphy as its new CEO, replacing Bill Sanford, who was serving as interim CEO at Fairway since February.

Murphy is a veteran of the natural and specialty foods business and most recently served as CEO of Earth Fare, the Fletcher, N.C.-based natural and organics chain. Prior to his stint with Earth Fare, Murphy was a co-founder of Boston-area natural and organic chain Fresh Fields, which was later sold to Whole Foods.  Murphy is a former operating partner at McCown Deleeuw & Co., the private equity firm that owned the 24 Hour Fitness chain; and a served as VP of operations at Purity Supreme Supermarkets.

“We believe that Jack brings very strong leadership to Fairway, and possesses highly relevant marketing and merchandising skills that are complementary to our organization,” Charles Santoro, chairman of Fairway Market, New York, said in a statement. “Jack has developed and implemented business strategies for unique and highly differentiated brands, and brings great enthusiasm, perspective and leadership to the Company.”

It was not immediately clear when Murphy departed Earth Fare, or who is succeeding him. The chain’s owner, the private equity firm Oak Hill Capital Partners, declined to comment to SN, and Earth Fare officials weren’t immediately available. When Oak Hill acquired Earth Fare in 2012, Murphy was identified as a minority owner of the company. He was appointed CEO at Earth Fare in 2008.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“I am very excited to lead this iconic food retailer known for its longstanding and unwavering commitment to providing a huge selection of high quality foods at great values to its millions of customers,” Murphy said. “Fairway Market is a true industry leader in innovative and exciting foods of all types. I’m honored to join this very special retail company and look forward to working with the entire Fairway Market team.”

Bill Sanford, who was appointed Interim CEO in February while the Company undertook a search for a new CEO, has decided to leave the company to pursue other interests. Bill joined the company in 2008 as chief administrative officer and then served as CFO and president before becoming interim CEO. Santoro added, “Bill has made significant contributions as a member of Fairway’s management team for the last 6 years, and we greatly appreciate his leadership and commitment throughout his time at Fairway.”

Suggested Categories More from Supermarketnews

Supermarket News

Fairway names Murphy CEO

Fairway Group Holdings on Friday said it has appointed Jack Murphy as its new CEO, replacing Bill Sanford, who was serving as interim CEO at Fairway since February.

Murphy is a veteran of the natural and specialty foods business and most recently served as CEO of Earth Fare, the Fletcher, N.C.-based natural and organics chain. Prior to his stint with Earth Fare, Murphy was a co-founder of Boston-area natural and organic chain Fresh Fields, which was later sold to Whole Foods.  Murphy is a former operating partner at McCown Deleeuw & Co., the private equity firm that owned the 24 Hour Fitness chain; and a served as VP of operations at Purity Supreme Supermarkets.

“We believe that Jack brings very strong leadership to Fairway, and possesses highly relevant marketing and merchandising skills that are complementary to our organization,” Charles Santoro, chairman of Fairway Market, New York, said in a statement. “Jack has developed and implemented business strategies for unique and highly differentiated brands, and brings great enthusiasm, perspective and leadership to the Company.”

It was not immediately clear when Murphy departed Earth Fare, or who is succeeding him. The chain’s owner, the private equity firm Oak Hill Capital Partners, declined to comment to SN, and Earth Fare officials weren’t immediately available. When Oak Hill acquired Earth Fare in 2012, Murphy was identified as a minority owner of the company. He was appointed CEO at Earth Fare in 2008.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“I am very excited to lead this iconic food retailer known for its longstanding and unwavering commitment to providing a huge selection of high quality foods at great values to its millions of customers,” Murphy said. “Fairway Market is a true industry leader in innovative and exciting foods of all types. I’m honored to join this very special retail company and look forward to working with the entire Fairway Market team.”

Bill Sanford, who was appointed Interim CEO in February while the Company undertook a search for a new CEO, has decided to leave the company to pursue other interests. Bill joined the company in 2008 as chief administrative officer and then served as CFO and president before becoming interim CEO. Santoro added, “Bill has made significant contributions as a member of Fairway’s management team for the last 6 years, and we greatly appreciate his leadership and commitment throughout his time at Fairway.”

Suggested Categories More from Supermarketnews

Supermarket News

Fairway names Murphy CEO

Fairway Group Holdings on Friday said it has appointed Jack Murphy as its new CEO, replacing Bill Sanford, who was serving as interim CEO at Fairway since February.

Murphy is a veteran of the natural and specialty foods business and most recently served as CEO of Earth Fare, the Fletcher, N.C.-based natural and organics chain. Prior to his stint with Earth Fare, Murphy was a co-founder of Boston-area natural and organic chain Fresh Fields, which was later sold to Whole Foods.  Murphy is a former operating partner at McCown Deleeuw & Co., the private equity firm that owned the 24 Hour Fitness chain; and a served as VP of operations at Purity Supreme Supermarkets.

“We believe that Jack brings very strong leadership to Fairway, and possesses highly relevant marketing and merchandising skills that are complementary to our organization,” Charles Santoro, chairman of Fairway Market, New York, said in a statement. “Jack has developed and implemented business strategies for unique and highly differentiated brands, and brings great enthusiasm, perspective and leadership to the Company.”

It was not immediately clear when Murphy departed Earth Fare, or who is succeeding him. The chain’s owner, the private equity firm Oak Hill Capital Partners, declined to comment to SN, and Earth Fare officials weren’t immediately available. When Oak Hill acquired Earth Fare in 2012, Murphy was identified as a minority owner of the company. He was appointed CEO at Earth Fare in 2008.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“I am very excited to lead this iconic food retailer known for its longstanding and unwavering commitment to providing a huge selection of high quality foods at great values to its millions of customers,” Murphy said. “Fairway Market is a true industry leader in innovative and exciting foods of all types. I’m honored to join this very special retail company and look forward to working with the entire Fairway Market team.”

Bill Sanford, who was appointed Interim CEO in February while the Company undertook a search for a new CEO, has decided to leave the company to pursue other interests. Bill joined the company in 2008 as chief administrative officer and then served as CFO and president before becoming interim CEO. Santoro added, “Bill has made significant contributions as a member of Fairway’s management team for the last 6 years, and we greatly appreciate his leadership and commitment throughout his time at Fairway.”

Suggested Categories More from Supermarketnews

Supermarket News

Fairway tempers store growth plan

Fairway Markets is treating its growing pains with more powerful medicine, taken less frequently.

Officials of parent Fairway Group Holdings in a conference call Thursday said the company would open just one or two projects per year in coming years, with an eye toward sites that can draw considerable customer attention and regional draw. One such project will be on the way in fiscal 2016 in the New York borough of Staten Island, where officials announced a newly built Fairway would anchor a planned redevelopment of the Staten Island Mall. That project draws some 12 million visitors a year, Edward Arditte, Fairway’s CFO and co-president, said.

“That’s the type of thing we want to be able to do,” Arditte told analysts. “And I would tell you that just about everything in our pipeline is of that type of characteristic. Those are the things we’re focused on.”

Fairway has built its prospects on growth but has encountered issues including cannibalization when its new stores open, and a portfolio of widely varying fortunes. It recently opened a store on Lake Grove, N.Y., and expects to open a new store in Manhattan’s Tribeca neighborhood early next year.

A store in Manhattan’s Hudson Yards and the Staten Island location are the only announced projects for respective fiscal years 2016 and 2017 at this point, although officials said they expected a second store in 2017 and could add one to the 2016 schedule if an opportunity arose.

Analyst Kelly Bania of BMO Capital, who had anticipated Fairway’s growth pace would be more in the range of two to three new stores a year, termed the new pace “cautious” and portends a slower outlook for growth, she said in a research note published Friday.

“Fairway’s differentiated store format, which offers a combination of organic, prepared, specialty and conventional foods, supports an outlook for significant long-term new store growth,” Bania said. However, she considered less visibility and predictability into new store openings as an “executional hurdle” for the retailer.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


The Lake Grove store, which opened on Long Island’s Suffolk County earlier this summer, is the chain’s “best new store,” Bill Sanford, Fairway’s interim CEO, said. That store is piloting design and productivity elements that officials intend to roll into additional units in coming months.

Officials made their remarks during a conference call reviewing first-quarter financial results.

Suggested Categories More from Supermarketnews

Supermarket News

Cannibalization, competition ding Fairway Q1 sales

Fairway Group Holdings said Thursday that same-store sales declined by 1.7% in the fiscal first quarter due in part to sales cannibalization from new Fairway stores and the impact of a recent competitive opening.

Total sales for the quarter, which ended June 29, totaled $ 198.3 million, an increase of 6.2% from the same period a year ago. Net sales growth was attributable to two new stores that opened during the period, offset by the decline in comps. Fairway posted adjusted EBITDA of $ 11.1 million and a quarterly net loss of $ 27.9 million.

Officials said sales and adjusted EBITDA were slightly above expectations, while profits as a percent of sales (31%) were lower than anticipated.

Suggested Categories More from Supermarketnews

Supermarket News

Cannibalization, competition ding Fairway Q1 sales

Fairway Group Holdings said Thursday that same-store sales declined by 1.7% in the fiscal first quarter due in part to sales cannibalization from new Fairway stores and the impact of a recent competitive opening.

Total sales for the quarter, which ended June 29, totaled $ 198.3 million, an increase of 6.2% from the same period a year ago. Net sales growth was attributable to two new stores that opened during the period, offset by the decline in comps. Fairway posted adjusted EBITDA of $ 11.1 million and a quarterly net loss of $ 27.9 million.

Officials said sales and adjusted EBITDA were slightly above expectations, while profits as a percent of sales (31%) were lower than anticipated.

Suggested Categories More from Supermarketnews

Supermarket News

Cannibalization, competition ding Fairway Q1 sales

Fairway Group Holdings said Thursday that same-store sales declined by 1.7% in the fiscal first quarter due in part to sales cannibalization from new Fairway stores and the impact of a recent competitive opening.

Total sales for the quarter, which ended June 29, totaled $ 198.3 million, an increase of 6.2% from the same period a year ago. Net sales growth was attributable to two new stores that opened during the period, offset by the decline in comps. Fairway posted adjusted EBITDA of $ 11.1 million and a quarterly net loss of $ 27.9 million.

Officials said sales and adjusted EBITDA were slightly above expectations, while profits as a percent of sales (31%) were lower than anticipated.

Suggested Categories More from Supermarketnews

Supermarket News

Gallery: Fairway opens Long Island store

Fairway Market opened a 50,000-square-foot store in Lake Grove, N.Y., July 23. It is the retailer’s 15th store.

The new unit is located in a shopping plaza and is directly across the street from a large shopping mall. It marks the New York-based retailer’s first store in Long Island’s Suffolk County.

“The location is ideal; DSW Plaza is also home to such national names as Designer Shoe Warehouse, Toys ‘R’ Us and Babies ‘R’ Us, and it is directly across the street from the Smith Haven Mall, so it is right in the heart of Suffolk County,” Charles Santoro, Fairway’s executive chairman, said in a statement.

As reported, the store features new layout designed to improve labor productivity, along with new signage and lighting.

See another store tour gallery: Target trials small Express footprint

Photos and captions by Carol Angrisani

Supermarket News

Gallery: Fairway opens Long Island store

Fairway Market opened a 50,000-square-foot store in Lake Grove, N.Y., July 23. It is the retailer’s 15th store.

The new unit is located in a shopping plaza and is directly across the street from a large shopping mall. It marks the New York-based retailer’s first store in Long Island’s Suffolk County.

“The location is ideal; DSW Plaza is also home to such national names as Designer Shoe Warehouse, Toys ‘R’ Us and Babies ‘R’ Us, and it is directly across the street from the Smith Haven Mall, so it is right in the heart of Suffolk County,” Charles Santoro, Fairway’s executive chairman, said in a statement.

As reported, the store features new layout designed to improve labor productivity, along with new signage and lighting.

See another store tour gallery: Target trials small Express footprint

Photos and captions by Carol Angrisani

Supermarket News

Gallery: Fairway opens Long Island store

Fairway Market opened a 50,000-square-foot store in Lake Grove, N.Y., July 23. It is the retailer’s 15th store.

The new unit is located in a shopping plaza and is directly across the street from a large shopping mall. It marks the New York-based retailer’s first store in Long Island’s Suffolk County.

“The location is ideal; DSW Plaza is also home to such national names as Designer Shoe Warehouse, Toys ‘R’ Us and Babies ‘R’ Us, and it is directly across the street from the Smith Haven Mall, so it is right in the heart of Suffolk County,” Charles Santoro, Fairway’s executive chairman, said in a statement.

As reported, the store features new layout designed to improve labor productivity, along with new signage and lighting.

See another store tour gallery: Target trials small Express footprint

Photos and captions by Carol Angrisani

Supermarket News

Gallery: Fairway opens Long Island store

Fairway Market opened a 50,000-square-foot store in Lake Grove, N.Y., July 23. It is the retailer’s 15th store.

The new unit is located in a shopping plaza and is directly across the street from a large shopping mall. It marks the New York-based retailer’s first store in Long Island’s Suffolk County.

“The location is ideal; DSW Plaza is also home to such national names as Designer Shoe Warehouse, Toys ‘R’ Us and Babies ‘R’ Us, and it is directly across the street from the Smith Haven Mall, so it is right in the heart of Suffolk County,” Charles Santoro, Fairway’s executive chairman, said in a statement.

As reported, the store features new layout designed to improve labor productivity, along with new signage and lighting.

See another store tour gallery: Target trials small Express footprint

Photos and captions by Carol Angrisani

Supermarket News

Gallery: Fairway opens Long Island store

Fairway Market opened a 50,000-square-foot store in Lake Grove, N.Y., July 23. It is the retailer’s 15th store.

The new unit is located in a shopping plaza and is directly across the street from a large shopping mall. It marks the New York-based retailer’s first store in Long Island’s Suffolk County.

“The location is ideal; DSW Plaza is also home to such national names as Designer Shoe Warehouse, Toys ‘R’ Us and Babies ‘R’ Us, and it is directly across the street from the Smith Haven Mall, so it is right in the heart of Suffolk County,” Charles Santoro, Fairway’s executive chairman, said in a statement.

As reported, the store features new layout designed to improve labor productivity, along with new signage and lighting.

See another store tour gallery: Target trials small Express footprint

Photos and captions by Carol Angrisani

Supermarket News

Fairway highlights its focus on local

Fairway Market, which started as a small stand in New York City selling locally grown fruits and vegetables, has expanded over the past 80 years, but its focus is still on everything local.fairwayyyy To celebrate this, Fairway is launching a monthly guide saluting all of its local partners and distributors, whose products can be found in its produce, fish, meat, dairy bakery, specialty departments and more throughout its stores.

The guide will provide brief descriptions of the farms, fisheries, dairies and manufacturers, easy-to-follow recipes using the products and special savings. Special emphasis is directed to how the products are manufactured, including fruits and vegetables that are grown organically.

“We know that our customers care about what they eat and where it comes from,” Bill Sanford, interim chief executive officer, said in a press release. “There is truly wonderful food being harvested and crafted by family farmers, local fishermen, small artisan food-makers, bakers and roasters right here in our own backyard. You can find the best of it in this new monthly food-lovers’ guide, and of course, in all our stores.”

He added that when buying local, “You’re not just buying the freshest and best-tasting foods available, you’re also helping save the environment and supporting your local economy.”

 

 

 

 

 

The Produce News | Today’s Headlines – The Produce News – Covering fresh produce around the globe since 1897.

Fairway to produce monthly local product guide

To further highlight local items across the store, New York-based Fairway Market plans to put out a monthly guide with product descriptions and recipes.

Available in stores, the guide will call out some of the 2,000 local products available in produce, fish, meat, dairy, bakery, specialty and other departments. In particular, the guide will describe how items were grown or made, such as fruits and vegetables that are grown organically, eggs that are 100% animal welfare certified, and bakery items that are made in-store daily.

“We know that our customers care about what they eat and where it comes from,” Bill Sanford, interim CEO, said in a press release. “There is truly wonderful food being harvested and crafted by family farmers, local fishermen, small artisan food-makers, bakers and roasters right here in our own backyard. You can find the best of it in this new monthly food-lovers’ guide, and of course, in all our stores.”



Suggested Categories More from Supermarketnews

Supermarket News

Fairway tweaks layout, look for new store

Fairway Market’s new store in Lake Grove, N.Y., will debut a new store layout designed to improve labor productivity along with new signage to help introduce the urban specialty store to what would be its most suburban audience.

The Lake Grove store — Fairway’s first in Suffolk County on Long Island — is expected to open in July, Kevin McDonnell, co-president and COO of the New York-based retailer, told analysts in a conference call reviewing quarterly earnings late Thursday.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


“While posting strong demographics, we do realize that Lake Grove is our most distant suburban location, and we will be taking appropriate measures to drive traffic and cultivate the customer base. Our renewed focus on enhancing in-store communications will allow us to more effectively highlight our differentiated offering and value proposition, which becomes increasingly important as Fairway extends further out from the city.”

Officials said Lake Grove would be a pilot store for the new signage, with plans to integrate the new design into existing stores. The Lake Grove store has also been designed so as to reduce labor costs by integrating service departments and increasing the efficiency of product loading and unloading.

The store is also using less heavy equipment than typical Fairway locations do, an initiative supported in part by the rollout of a new production facility. That facility is expected to begin operations shortly, starting with produce cross-docking and adding bakery and full food preparation capabilities by the end of the calendar year. This facility will improve costs and product quality, while supporting increased varieties of prepared foods, McDonnell said.

Much of the new selections in prepared foods appeal to diverse international tastes, McDonnell said, citing a new line of empanadas and tamales; a Mediterranean line with Moroccan-style chicken; and Asian- and Indian- inspired noodle bowls. “The early success of these lines has prompted us to begin working on additional SKUs for added variety,” he said.

Suggested Categories More from Supermarketnews

Supermarket News

Fairway posts $8.8M loss in Q4

Fairway Group Holdings reported a loss of $ 8.8 million on sales of $ 200.3 million in the fourth quarter, which ended March 30.

Sales increased by 12.1% overall, due to new stores and the incremental effect of having its Red Hook store open for the entire quarter, versus four weeks last year when it reopened following repairs from Hurricane damage.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


Adjusted for the Red Hook opening, sales grew by 4.8%, while comparable-store sales decreased by 1.9%. The company said comps declined due to severe winter weather, the shift of the Easter and Passover holidays from the fourth quarter last year to the first quarter this year, and the effect of cannibailization from new locations.

Total sales were slightly above analyst expectations, while profits as a percent of sales of 32.4% fell below expectations.

Officials in a conference call Thursday said the Red Hook store — which typically exceeds $ 1 million in sales per week — experienced a reduction of around $ 200,000 in weekly sales due to a competitive opening in Brooklyn. This referred to Whole Foods Markets’ new store in the nearby Gowanus neighborhood.

Suggested Categories More from Supermarketnews

Supermarket News

Fairway CEO retires amid realignment

Fairway Group Holdings said Thursday that CEO Herbert Ruetsch plans to retire after 15 years with the company, parent of the Fairway Market chain, as it launches an “organization realignment” to cut costs.

William Sanford, currently president of Fairway, was named interim CEO. The company said its board will begin a CEO search shortly.

In addition, Fairway named two co-presidents to succeed Sanford: Kevin McDonnell was promoted to co-president and COO, and Edward Arditte was promoted to co-president and CFO. McDonnell, who had been SVP and COO, spent 27 years with A&P before joining Fairway six years ago. Arditte had been EVP and CFO since 2012, and before that had worked in financial and operations posts for 25 years at other companies, including Tyco International, BancBoston Capital and Textron.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


Fairway said Ruetsch will remain a special advisor to the company and will continue to provide input into certain merchandising and product initiatives.

Charles Santoro, executive chairman of Fairway, said, “Herb Ruetsch has helped lead Fairway through a major transformation from a small family business into an iconic, growing specialty food retailer serving some 20 million customer visits annually in the tri-state area. All of us at Fairway would like to thank Herb for his many contributions to our success.”


CONNECT WITH SN ON LINKEDIN

Join SN’s LinkedIn Group to network with industry professionals.


He added that Sanford “brings continuity, strong leadership and organizational skills, and has also played a very important role in Fairway’s growth, development and success over his last five years at Fairway, including his previous roles as CFO and most recently as president.”

Separately, Fairway said its same-store sales — excluding a store in the Red Hook area of Brooklyn that was closed during the last nine weeks of the third quarter of last year — decreased by 1.7% in the most recent third quarter. The company attributed the decrease to the compressed holiday shopping period and the effect of Hurricane Sandy, which benefited sales in the third quarter of fiscal 2013.

Read more: Fairway Q2 results soften; stock dives

The net loss in the quarter, which ended Dec. 29, was $ 31.3 million, compared with a net loss of $ 44.5 million in the third quarter of a year ago. The adjusted net loss in the quarter — after accounting for a $ 25.4 million income tax provision and other charges — was $ 2.2 million, versus the adjusted net loss of $ 5.8 million in the third quarter of the prior year.

Sales increased 22.9% in the third quarter to $ 205.7 million.

Fairway said it has launched an organizational realignment to remove redundant costs and streamline parts of the business model to enhance its productivity. In connection with the plan, the company expects to incur charges, primarily severance, over the next year of approximately $ 7 million.

Suggested Categories More from Supermarketnews

Supermarket News

Fairway CEO retires amid realignment

Fairway Group Holdings said Thursday that CEO Herbert Ruetsch plans to retire after 15 years with the company, parent of the Fairway Market chain, as it launches an “organization realignment” to cut costs.

William Sanford, currently president of Fairway, was named interim CEO. The company said its board will begin a CEO search shortly.

In addition, Fairway named two co-presidents to succeed Sanford: Kevin McDonnell was promoted to co-president and COO, and Edward Arditte was promoted to co-president and CFO. McDonnell, who had been SVP and COO, spent 27 years with A&P before joining Fairway six years ago. Arditte had been EVP and CFO since 2012, and before that had worked in financial and operations posts for 25 years at other companies, including Tyco International, BancBoston Capital and Textron.


CONNECT WITH SN ON TWITTER

Follow @SN_News for updates throughout the day.


Fairway said Ruetsch will remain a special advisor to the company and will continue to provide input into certain merchandising and product initiatives.

Charles Santoro, executive chairman of Fairway, said, “Herb Ruetsch has helped lead Fairway through a major transformation from a small family business into an iconic, growing specialty food retailer serving some 20 million customer visits annually in the tri-state area. All of us at Fairway would like to thank Herb for his many contributions to our success.”


CONNECT WITH SN ON LINKEDIN

Join SN’s LinkedIn Group to network with industry professionals.


He added that Sanford “brings continuity, strong leadership and organizational skills, and has also played a very important role in Fairway’s growth, development and success over his last five years at Fairway, including his previous roles as CFO and most recently as president.”

Separately, Fairway said its same-store sales — excluding a store in the Red Hook area of Brooklyn that was closed during the last nine weeks of the third quarter of last year — decreased by 1.7% in the most recent third quarter. The company attributed the decrease to the compressed holiday shopping period and the effect of Hurricane Sandy, which benefited sales in the third quarter of fiscal 2013.

Read more: Fairway Q2 results soften; stock dives

The net loss in the quarter, which ended Dec. 29, was $ 31.3 million, compared with a net loss of $ 44.5 million in the third quarter of a year ago. The adjusted net loss in the quarter — after accounting for a $ 25.4 million income tax provision and other charges — was $ 2.2 million, versus the adjusted net loss of $ 5.8 million in the third quarter of the prior year.

Sales increased 22.9% in the third quarter to $ 205.7 million.

Fairway said it has launched an organizational realignment to remove redundant costs and streamline parts of the business model to enhance its productivity. In connection with the plan, the company expects to incur charges, primarily severance, over the next year of approximately $ 7 million.

Suggested Categories More from Supermarketnews

Supermarket News