THE FRIDAY 5: Walmart Walks Back Its DEI Efforts; C-Suite Shakeup at Kroger

1. Blue Yonder Faces Cyberattack

During this short holiday week, PG readers were most interested in supply chain software company Blue Yonder’s recent ransomware attack. On Nov. 21, the Panasonic-owned company confirmed on its website that it was experiencing disruptions to its managed services hosted environment due to the cybersecurity incident.

In the United States, Blue Yonder’s customers include large chains such as Albertsons Cos., The Kroger Co. and Wegmans and banners like Harris Teeter. In October, Blue Yonder reported that its 31 new customers expanded their footprint or added the company’s services during the third quarter of its fiscal year, including BJ’s Wholesale Club and Sheetz. 

“The cyberattack on Blue Yonder is yet another reminder that retailers are at risk in the U.S., UK and in other global locations and they should brace for cyberattacks during the holiday season. This attack was likely calculated as the hackers are aware that the Thanksgiving Holiday is approaching and disruptions in the supply chain will leave many grocery stores in the U.S. with empty shelves at the worst possible time,” remarked Dan Lattimer, VP at Semperis, a firm specializing in active directory security.

As testament to that sentiment, an update on Hannaford’s cybersecurity breach also gained clicks this week. Ahold Delhaize USA, Hannaford’s parent company, detected a cybersecurity issue in its network during the first week of November, with Hannaford experiencing issues with pharmacy orders and online ordering.

Ahold Delhaize USA's security teams began an investigation with the assistance of external cybersecurity experts, and the company also notified law enforcement. While Ahold Delhaize USA’s stores remained open during the incident, Hannaford was forced to take its systems offline for 12 days. The grocer’s servers are now back up, but the retailer is informing customers that details regarding the cybersecurity issue are not available, as the investigation is still ongoing. 

2. C-Suite Shakeup at Kroger

News of c-suite moves at The Kroger Co. gained attention this week. Following his resignation last week as chief merchandising and marketing officer at Kroger, it was revealed that Stuart Aitken will take on the president and CEO role at Chicago-based insights and technology firm Circana, effective Jan. 1. Aitken will succeed Kirk Perry, who is retiring from the position but will continue to serve as a member of the company’s board of directors. 

Meanwhile, Mary Ellen Adcock, Kroger’s SVP of operations since 2019, will succeed Aitken as chief merchandising and marketing officer. Aitken will remain in his role at Kroger through Dec. 31.

“Mary Ellen is a respected leader both within Kroger and our industry,” said Kroger Chairman and CEO Rodney McMullen. “Her deep strategic experience in her past 25 years with Kroger in roles of increasing responsibility will continue to drive value for customers and growth for our business and associates.”

3. Walmart Walks Back Its DEI Efforts

News broke this week that Walmart is joining a growing cadre of businesses stepping away from diversity, equity and inclusion(DEI) programs that have been targeted by conservative groups. As such, America’s largest retailer will no longer consider race and gender to boost diversity when granting supplier contracts. It will also stop collecting demographic data when assessing financing eligibility.

Walmart will scale back racial equity training, stop participating in rankings by an LGBTQ advocacy group, and review its support for Pride and other events. In addition, the retailer will not renew a five-year commitment for an equity racial center set up in 2020 after the police killing of George Floyd.

Conservative activist Robby Starbuck, a vocal DEI opponent, recently threatened Walmart with a campaign to lead a customer boycott just days before Black Friday. Upon hearing of Walmart’s DEI changes, Starbuck wrote in a post on X, “This is the biggest win yet for our movement to end wokeness in corporate America.”

According to Walmart U.S. CEO John Furner, the retailer is making the changes to help foster inclusion. 

4. More Executive Moves

It was revealed this week that industry veteran Suzy Monford has been named chair and CEO at Hispanic-focused Heritage Grocers Group (HGG). Most recently, Monford was CEO of global consulting firm Food Sport International in Seattle. She founded that organization following a tenure as CEO of PCC Community Markets in the state of Washington.

HGG board members said she is the right leader to steer the company at a time when the specialty and Hispanic grocer is expanding its business. 

“We are thrilled to welcome Suzy as Heritage’s Chairman and CEO, and are confident that her unparalleled industry experience and track record of driving transformational growth will allow her to lead the company into its next phase of growth. Heritage is well-positioned in the Hispanic and ethnic grocery industry, serving as a one-stop-shop for the fastest growing demographics in the United States,” said board members and Apollo partners Andy Jhawar and Joanna Reiss in a joint statement. “Under Suzy’s leadership, we expect the company to further its mission to bring fresh and affordable groceries to the communities it serves while growing and enhancing its operations.”

Numerous executive moves at Dollar General also made waves among PG readers this week. Tom Hutchins has joined the retailer as SVP, technology, while Kevin Pinchon will now serve as the company’s SVP, distribution. Shawn Bartels has been promoted to division VP, store operations, and Brad Boll has been promoted to VP, global inventory management – consumables. The company made nine other executive appointments this week.

5. Sprouts Ready to Expand in Delaware

Fast-growing Sprouts Farmers Market recently shared news of several store openings, including its second location in the state of Delaware. The grocer will cut the ribbon on its new store in the city of Middletown on Dec. 6, as well as other new stores in San Jose and Downey, Calif. 

Also on Dec. 6, the grocer will open a new store in Madison, Tenn., and unveil a relocated store in Littleton, Colo. On Nov. 22, the company opened its first outpost in the state of Wyoming. Meanwhile, Sprouts debuted a new store in Palm Springs, Calif., on Nov. 8, in Studio City, Calif., on Nov. 15, and in Georgetown, Texas, on Nov. 22.