Dive Brief:

• Stop & Shop president Mark McGowan has resigned from his role with the grocery chain, according to a press release from parent company Ahold Delhaize. McGowan will remain with the company through the end of the year.
• Ahold Delhaize has tapped Gordon Reid, president of Giant Food, to replace McGowan. Reid will officially begin his role with Stop & Shop in late July.
• Giant Food senior vice president of operations Ira Kress will assume the role of interim president for the banner once Reid vacates the position.

Dive Insight:

While there is no specific reason given for McGowan's decision to depart, he leaves after a rocky period for the grocery chain, which saw declining sales volume and one of the largest grocery worker strikes in recent history. The 11-day strike in New England caused a one-time hit of as much as $110 million in Ahold Delhaize's operating profit.

Reid will step into his role as president of Stop & Shop with a bit of cleanup left to do to win back customer loyalty and improve labor relations after the strike, but he is also inheriting a chain that has seen some recent innovations. Late last year, dozens of Stop & Shop stores were given an experienced-focused remodel as the grocer tests a number of new concepts in the Northeast to boost its performance.

Ahold Delhaize is also relying heavily on Stop & Shop to support its e-commerce growth, and the grocer just launched same-day grocery pickup through Peapod. Earlier this year, Ahold Delhaize said that Stop & Shop would open several automated micro-fulfillment centers to pack online grocery orders.

Reid, who has more than 35 years of international retail experience, joined Giant Food in 2013. He has held several management roles for companies including Tesco, and according to Ahold Delhaize USA CEO Kevin Holt, sales and market share for Giant Food have grown under Reid's leadership.

Giant Food most recently unveiled a two-year, $175 million investment to add new locations and remodel 24 stores in the greater Washington, D.C. area.

McGowan is stepping away from Ahold Delhaize after 30 years with the company, having started at Stop & Shop as a manager in 1991, according to a company bio. Prior to his role as Stop & Shop president, he held executive roles in operation, merchandising and supply chain.