Nash Finch Eyes Changes in Wholesale, Retail Operations

MINNEAPOLIS - Nash Finch here yesterday said it is reorganizing its distribution and retail businesses and focusing on growing its volume within existing geographies. In a conference call discussing third-quarter results, Alec Covington, chief executive officer, said the company planned to divide its wholesaling operations into three divisions -- produce, meat and center store -- to allow each to focus their distinct priorities. Each will have its own independent management structure and branding, and will be able to pursue customers independently of the other silos. “It will clearly raise the bar on our ability to distribute properly and satisfy the consumer at store level,” Covington said. In addition, the company will seek to convert its remaining company-owned stores to specific niche formats such as upscale, urban or EDLP, and eventually license them to independent operators. It will retain some retail ownership, however. For the 16 weeks ended Oct. 7, Nash Finch posted a loss of $4.6 million, vs. $11 million in net income in the year-ago period, after a series of charges in the recent quarter totaling $11.2 million. Sales were down about 2.6%, to $1.43 billion. Same-store retail sales were down 1.8% for the quarter and 2.1% year-to-date. Mark Hamstra