Dive Brief:
- Wendy Collie is stepping down as chief executive officer of New Seasons Market, a natural and organic retailer that had grown to 25 West Coast stores during her five-year tenure, according to Oregon Live. Collie told the newspaper that the decision was a mutual one, noting that it comes at a time of considerable competition in the grocery industry.
- New Seasons is also pulling back from a planned expansion into Northern California. The Portland, Oregon-based company will close its location in Sunnyvale, and has scrapped plans for three other stores in the region. It will continue to operate its four New Leaf Community Market locations, which it acquired in 2013, and will continue its expansion in the Pacific Northwest and central California.
- Reports paint Collie as a lightning rod for criticism regarding labor practices. Her five-year tenure saw a cut back in employee health care and a unionization effort that workers alleged the company attempted to break up.
Dive Insight:
New Seasons Market will go forward with two co-presidents leading the company following the departure of CEO Wendy Collie.
Kristi McFarland, chief people officer, and Forrest Hoffmaster, chief financial officer, will head the company, with Collie staying on through February to help with the transition.
The natural and organics chain grew from 12 to 25 stores under Collie, but now has 19, with another location set to close soon in Sunnyvale, California. Looking ahead, the company will focus on growth markets like Seattle and California's Central Coast, remodel older stores and probably start to test delivery models, Collie told Oregon Live. "The retail landscape in the grocery industry has been changing dramatically and with incredible speed over the last six to 18 months," Oregon Business quoted her as saying.
Natural and organics retailers used to be seen as immune from broader retail competition, but with Whole Foods Market under Amazon ownership, more stores adopting natural and organic products, and continuing pressure from companies like Trader Joe’s, Sprouts and Earth Fare, those days are long gone. Retailers like New Seasons have to operate smarter.
Whereas a decade ago specialty retailers like New Seasons were the go-to for natural and organic products, these days consumers can find these items at a range of stores, and often competitively priced. Private label organic lines have now gone mainstream — most notably Kroger's Simple Truth brand, which now brings in more than $2 billion annually.
“Today’s disruptive retail landscape has inspired many companies such as ours to re-evaluate their organizational structure and strategy,” Collie said in a statement quoted by Progressive Grocer. “The board and I have made the decision to redirect resources to support our core business, fund improvements for existing stores, and invest in developing programs and services that will best meet the changing needs of our customers and communities.”
Collie started her CEO tenure at New Seasons in 2012 pushing for the B Corp certification, beefing up benefits, increasing wages and introducing paid parental leave. But a cut back in health care benefits last year led to a drive for unionization, and employees saying New Seasons hired a “union-busting” consulting firm. New Seasons has denied the accusation, but workers said the company has become less hospitable to employees while Collie has been CEO.
