TROY, Mich. -- Kmart here has chosen retired Supervalu executive Laurence L. (Larry) Anderson to head its Super Kmart operations.
The company said Anderson will become president of Super Kmart and executive vice president of the parent company, Kmart Corp., effective Aug. 18. In his new post, he will report to Kmart chairman, president and chief executive officer, Floyd Hall.
Hall has been filling in as the head of Super Kmart while a successor was sought for Ronald J. Floto, who resigned in May as executive vice president of Kmart and president of Super Kmart to join a U.K.-based division of Dairy Farm International, Hong Kong.
Anderson, 55, officially retired March 2 from Minneapolis-based Supervalu, after a 23-year career there. His most recent title there was executive vice president and president and chief operating officer of retail food companies, with responsibility for seven companies operating four different retail formats, including Cub Foods, Shop N Save and biggs Hyper Shoppes.
Although the Super Kmart format has taken a back seat this year to the remodeling of Kmart discount stores, financial analysts agreed that the top Super K post was one that needed qualified leadership.
"What this will do is provide direction at Super Kmart," said Joseph Ronning of Brown Bros. Harriman & Co., New York.
"[Anderson's] job will be to improve operations within the company's limits" such as working with outside wholesalers, unlike Wal-Mart supercenters, which are mostly self-supplied.
"[Anderson] will tighten up this operation. Then, when and if the time comes for expansion, there will be a vehicle that can be rolled out," Ronning said.
About $750 million -- the bulk of Kmart's capital budget this year -- will go into remodeling and converting some 625 conventional Kmart discount stores of more than 65,000 square feet to the Big K format, an expanded format that features a large pantry to induce high-frequency shopping. The company said it will resume new store construction with 35 new discount stores and 15 to 18 new Super Kmart combination stores next year.
"They're not completely satisfied with the Super Ks at this point," said Don Spindel, retail analyst with A.G. Edwards, St. Louis. "But before they can have any major step-up in expansion, they have to evaluate the situation.
"There is pressure on Kmart to be as competitive as they can be. They recognize what needs to be done and the current management has done an excellent job of identifying problems and trying to rectify those things that need fixing. Kmart has been very forthright in what they need to do."
Spindel said the new president of the division would need a few months to get himself familiar with the operation, and predicted no major Super K moves before 1998.
Anderson was not available for comment last week.
Kmart operates 97 supercenters, including one that opened in San Jose, Calif., in February. Super Kmart sales were $3.7 billion in 1996. The company said it will open three more Super Kmart Centers this year.
After Floto's exit in May, Ernest L. Heether, senior vice president for merchandise operations, planning and replenishment, took over Floto's responsibilities for the company's distribution centers.
A spokeswoman for Kmart said last week the company had no other executive changes to announce. However, she would not rule out a management restructuring in the next few months.
After joining Supervalu's former Des Moines division in 1974 as retail operations manager, Anderson became vice president of that division in 1977. He was named corporate vice president and regional president of retail support companies in 1985 and in 1988 was appointed corporate senior vice president. With the acquisition of St. Louis-based Wetterau in 1992, Anderson assumed the additional responsibility of vice chairman of Wetterau. He was named to his present position in February 1995.
