Dive Brief:
- Ahold Delhaize chief financial officer Jeff Carr will step away after his current term on the company's management board expires in April 2020, according to a press release. Carr was appointed CFO of Ahold in 2011.
- Carr will assist CEO Frans Muller in finding a successor and ensuring a smooth transition. The search is underway and the company says it will announce when a decision has been made.
- “I would like to recognize Jeff for his significant contributions to the Company as he remains a great partner in helping shape Ahold Delhaize, in driving our Save for our Customers program, and in delivering on our commitments,” Muller said in a statement. “I look forward to our continued collaboration through next April as we further implement our Leading Together Strategy.”
Dive Insight:
Carr played an instrumental role in the signature merger that formed Ahold Delhaize, assuming the role of CFO for the combined companies in July 2016.
Since then, he has helped carve out cost savings between the two formerly separate entities while also working to boost comparable sales growth, market share and e-commerce revenue. Ahold Delhaize's "Leading Together" strategy, unveiled last November, aims to save $2 billion over this year and next while generating roughly $2.2 billion in free cash flow during that time.
Ahold Delhaize reported positive top and bottom line growth in its most recent earnings release, with consumer online sales up 25%, operating margin up 2.2% and net income up 2.4% from the same period last year. This and other recent quarterly results were viewed positively by the investment community, and the company says its East Coast banners enjoy leading or second-best sales share in the majority of markets where they operate.
However, Ahold Delhaize has labored to boost its e-commerce sales. During its most recent earnings call, analysts questioned the company's ability to hit its goal of 20% sales growth this year and 30% next year. The company has bet on promotions as well as the integration of e-commerce company Peapod with its U.S. brick-and-mortar operations to boost sales.
In 2017, Carr was named CFO of the Year in the Netherlands by Alex van Groningen BV, a Dutch consulting firm. Before his time at Ahold Delhaize, Carr worked at Unilever and has held senior roles in finance at Grand Metropolitan, Reckitt Benckiser and Associated British Foods.
Carr isn’t the only CFO in food retail to step down or retire recently. In December 2018, Kroger CFO J. Michael Schlotman announced his retirement after 18 years on the job, and was succeeded by Gary Millerchip, formerly chief executive of Kroger Personal Finance. Just last month, UNFI CFO Mike Zechmeister left the wholesaler for a job with freight services broker C.H. Robinson.
