corporate and store headcount yet. This is the only way SVU can make earnings. They have many opportunities to cut headcount. You will see a reduction at the Albertsons stores and a major reduction in headcount at corporate. Watch for headcount cuts specifically in the marketing, pharmacy and IT departments.
Look for 10% headcount cuts this year with more to follow.
They have to lower prices at Albertsons stores.
chopping payroll from those over paid Albertsons management group? The pharmacy department alone has 7 VPs. They have ob=ver 100 managers!
Supervalue will turn into super costly. I will sell if they do not start cutting payroll soon.
Mr. Tripp has taken care of himself. Kudos to him. He took one of the best drug store chains in the country and flushed it down the toilet. Mr. Tripp took help away from the pharmacists, screwed up a new pharmacy system, did not work to grow markets that were at risk to increased competition and told everyone what a great job they did.
Mr. Tripp is good at one thing and that is taking care of himself. SVU will be down in the single digits if they are counting on any help from him.
A District Manager for Albertsons once told me that the company had become a piggy bank for the top guns. I believe him.
Why would anyone have faith in him? He is like all the others. He took care of himself.
When Mr. Tripp took over pharmacy Osco-Savon was a powerhouse in the industry. Today they are an afterthought.
No, Sigma, Delta and other "team" or "special project" approaches were not "Think of it as what was once called "business process reengineering"
When you have business processing engineering your have a vision, an objective and a goal. You also have your "best" and "brightest" totally focused on the project... and you don't recruit 100s of people that still have their every day jobs to try to work through the issues.
VIC should have been totally in charge and responsible for Delta if this was the number one priority for the company. He should have sat in on meetings and seens that they were not organized and developed correctly.
Everyone on Delta was totally frustrated from the get go... No one group was interfacing with the other.. and NO ONE CARED... because it was an exercise in futility, an exercise meant to show the "street" Vic had a plan.
This is one principal I believe in that our current president has. As leader you make decisions, tough decisions... you don't lead by concensus and you make swift decisions when things are going bad... 4 years for Delta and the Sigma Six when your market share is dropping like a rock!
The status and future of the business called for immediate decisive and bold action... None of it came from VIC, Gary or LJ. When you have a big ship like Albertsons nothing but bold action will make a difference. They went the route of buying time and CYA. That is because they all know they would get golden parachutes in the end.
I knew people on the Delta team. They were unable to accomplish anything. It had nothing to do with moving them to Salt Lake City over a four year period. It came to who was on the different projects and as usual, politics.
There was never going to be a bold initiative out of that group. They were formed for the purpose of creating the perception that something was happening.
I know Vic was protected, I am speaking of the Exec VPs and Sr. VPs that continued to line their pockets and then point to a Delta team that was going to fix everything.
There was an exodus, and the best of the bunch left, but the number of years had nothing to do with it. It was a lack of empowerment and politics.
With VIC and the rest of the upper management all the different projects were nothing more than a CYA move... Gee look what we are doing!!!
This is accurate except for one point... It was not that LJ and the ABS management team could not stop the bleeding, it was that they would have had to make major changes, spend some money and take accountability for those changes... that would have required risking their jobs, and they were not going to do that.
In a large company job one is keeping your job. Try to make things better but don't rock the boat too much or you get in the spotlight as the guy who made the wrong move.
All of upper management at ABS worked to hold on to their jobs and continue to collect a paycheck. They never had the guts to do the things that would have made a difference and turned the company around.
When in doubt, set up some strategic team, Delta, Swot... hire a few consultants, make some superficial changes, but god forbid, don't risk your job to increase the quality of the company.
It is the american corporate way..
Stock has dropped like a rock for 7 years. Old management , new management can do nothing but cut headcount and collect their pay checks.
No one is making money but upper management. They do not want to sell. They have cushy jobs with no expectations. Why give it up?
Sharholders should demand that all upper management including the 200+ VPs be fired. Hire a CEO who will liquidate the company and get some shareholder value.
No one wants to buy so you must liquidate now.
Now ABS IS dead in th water. This will be a 15 dollar stock in weeks.
LJ, will be happy to hang on collecting his million plus salary a year.
The only thing tha can save this company is to totally clean house get rid of half of upper management. why not, they have just run the company into the ground.
Then, close about 40% of the stores. ABS has at least 40% stores that are losing money.
Keep about 5 key markets and reformat to bring in business in metropolitan areas. Go head to head with whole foods and stop trying to be everything to everyone. This would take guts which ABS upper management does not have.
Finally, get rid of pharmacy management. They simply don't have a clue. They have lost market share year after year in a very fast growing industry. Why would you keep any on them?
I wonder how the fact that ABS announced that they were going to sell some or all of he company affects insider trading rules?
You know there are a bunch of bigwigs holding a lot of options and restricted stock that can't wait to get out.
I also wonder if the company is still issuing options and restricted stock?
Anyone know the answers?
Please send your guesses on two key questions:
What will LJ's package be worth when he leaves?
My guess, is somewhere around 20 million.
Where will he end up? My guess is back at GE.
If you report to a VP, or Exec.VP, please let us hear some of the comments they are telling you about the "sale" of the company.
My guess is they are very upbeat and don't think you should leave. Why? Because they are going to cash out and if you leave their life gets tougher.
Good luck to the unlucky 99%.
You would be better off buying almost any other stock than this one.
No one wants their buildings because they are either too small or too big for the updated food retailer configurations, demographics and market competition.
They have outdated fixtures and their systems are a mess. The pharmacy end of the business has been losing market share for years. Their sales trending worse than almost any other food retailer.
Whole Foods, Costco and Walmart are the big players. A good foreign company would avoid ABS like the plague. They might enter one market buying a few stores, but that is it.
Add to that anyone left at ABS worth their salt will be getting out quickly. If you think you have value in the marketplace you must start looking now and leave before the
Yes the boys at the top screwed the bttom 99% again... and things will get worse from here
From Yahoo: in thousands (except for per share)
Property Plant and Equipment $10,472,000
Book Value Per Share (mrq): $14.826
Total Stockholder Equity $5,456,000
They do not own much in propert or stores. Where do you get this? Show me it in the annual report.
Figures don't lie, Liars figure.
Will be lucky to sell at $20.00
BTW, ABS already includes over 2 billion in their assets as goodwill. I do not see anything close to that figure being accurate.
That would drop the per share value down to about $10.00
Doesn't anyone get it? No one wants these stores. Management will start closing stores, offices and distribution centers until they are small enough and have paid off some of their massive debt to buy.
Write the board and ask them to perform their fiduciary resonsibility and fire LJ and his key management team and give them nothing.
Otherwise the shareholders and unions should sue the board.
You are dead wrong. ABS owns some of the buildings and almost none of the land.
I worked in the central office and knew some of the Real Estate guys. Their job was to find optimal locations to build or rent. They never bought the land.
Look at the annual report.
They have listed on the balance sheet 10 billion for Property, Plant, and equipment.
that is about 4 million a store. 4 million would not cover the land. The store, the equipment and infrastructure, but not the land.
If they owned the land in Florida, California, and Illinois, each parcel would be worth close to 4 million by itself. These stores are are contained, with parking on approximately 2 acres. Most are in shopping centers, they do not own the land.
Walgreens owns the land.
Also, last thing: Look at Yahoo key statistics. ABS has a book value of $15.00 a share. that is probably inflated.
Why pay $20.00 in a failing company with junk bond status dropping sales and margins when book value is $15.00?
They will be lucky to get $18.00
All you saw on Friday was short covering. A lot of shorts are all over this and rightfully so. Now watch them come back and investors start to sell. $15.00 by X-Mas.
If the board was totally unbiased, they would now fire LJ and void his contract for total lack of ability to acheive any of his ORIGINAL objectives. The board should offer him nothing.
But we all know the board will be watching out for LJ, because LJ will cut deals as the sale initiates for the board members and higher ups..
It is all a game to these
AnyOne could have done that 6 years ago when he came on board... we did not need to pay him a hundred million dollars to sell the company and place the company debt at junk bond status.
I STRONGLY RECOMMEND ALL STOCKHOLDERS AND EMPLOYEES WRITE LETTERS TO THE BOARD DEMANDING THAT LJ BE FIRED FOR INCOMPETENCE. I SUGGEST THAT YOU DEMAND THEY DO IT IMMEDIATELY. IF THEY DO NOT YOU SHOULD GO TO YOUR UNIONS AND ASK THE UNIONS TO SUE THE BOARD ON YOUR BEHALF BECAUSE LJ AND HIS SUPPORTING CAST COST UNION MEMBERS TO LOSE THEIR JOBS. IF ANY ALBERTSONS EMPLOYEE SCREWED UP HALF AS BAD THEY WOULD HAVE BEEN WRITTEN UP AND FIRED WITH NO SEVERENCE AFTER ABOUT 2 MONTHS OF HIS KIND OF PERFORMANCE
WRITE THE BOARD AND MAKE A DIFFERENCE. TELL THE UNIONS TO DO THE SAME.
With junk bond status, failing sales and a shortage of buyers this stock will be lucky to sell at $20.00.
Good luck to all of you except for VP and above. You have already had a lot of luck and did not do your jobs.
I left this company over 5 years ago. The only thing that was certain was that upper management took care of itself and damn everyone else.
Guaranteed that the board and the top 15 or 20 in the organization cashes out millions in options for doing s
No different than when Vic Lund sold ASC to ABS. There were a lot of VPs happy about the sale. All options vest on the day of the sale. Many VPs made millions. Employees were either forced to move or lost their jobs due to cutbacks.
Hey Larry, where are all those synergies you promised to find? Other than cutting costs, meaning other peoples jobs or pay(and not your own salary)you did nothing to earn the 10s of million you made over the years. How can you sleep knowing that tens of thousands of employees are now uncertain about their futures? Because you not only failed but did not try. Your job was to collect as much for you and your inner circle and let the high turnover continue.
Here is the list of people that will have their golden parachutes, restricted stock that they received for nothing and options that were given well below strike price:
ANDRUS, CECIL D.
BAILEY, PAMELA G.
BANKS, ROBERT K.
BRYANT, HENRY I.
BUTLER, ROBERT CHARLES
DOWNES, ADRIAN J
DUNST, ROBERT J JR
GANNON, PAUL TIMOTHY
GENTILE, JAMES F.
HERBERT, KATHY J.
JOHNSTON, LAWRENCE R.
POWELL, PAMELA S.
PRITCHARD, BETH M.
SALES, WAYNE C.
SCOTT, JOSEPH B.
SEIFERT, KATHI P.
SIMS, JOHN R.
TRIPP, KEVIN H
These are the winners!
If you are in your early forties to your mid fifties and in management, and lost a lot of your savings in the tech boom, you are in serious trouble. There is so much consolidation going on that there is no where to go.
The company will not replace associates who leave. Your future is uncertain at best. They may ask for another 10 or 15 percent headcount reduction so they can get a better selling price.
If they sell the company off in pieces anyone in the office that supports that part of the business is lost.
Yes upper management did a great job, taking Albertsons, Jewel, Acme, Shaws, Osco and Savon from the giants they once were to nothing more than a fire sale with junk bond status.
Now they get rewarded.
Ya, I had a bad attitude also... and now everyone knows the reason.