2010 Power 50: No. 17 Jerry Garland

Jerry Garland is at the top of his game, as one independent retailer-AWG member put it.

Since he was named president and chief executive officer of Associated Wholesale Grocers in 2009, AWG’s sales have kept hitting new records.

“AWG achieved record sales in 2009 of over $7 billion, up 3% over prior year,” Garland told SN. “Operating income was $170 million, up 14%. Total dividends and allowances returned to members was $447 million, up 6.5%.”

That growth is especially positive, since it was achieved during some of the worst months of the recession, but what’s more, it’s AWG’s second-straight year of record sales.

Last year at this time, the retailer-owned co-op had achieved record sales of $6.85 billion and had acquired over 160 additional retail stores.

“Challenges going into the second half of 2010 remain focused on top-line sales and cost controls, which have allowed the company to reduce operating margins for 10 consecutive years,” Garland said. “This year will be the third and final year of implementation of new warehouse management systems that have exceeded expectations in terms of productivity increases, while delivering a 98% service level to stores.”

Retail members and others in the industry speak well of Garland.

His retail background — he was with Kroger Co. for years before coming to AWG — has helped him understand the needs of AWG’s members. Meanwhile, Garland gives credit to AWG’s retail members for forging ahead successfully in a down economy.

“AWG and our member retailers continue to fare well in this tough economy,” Garland said. “Same-store sales are slightly positive overall. Our retailers are doing a tremendous job of managing their businesses and meeting the needs of their customers. From a retail perspective, our No. 1 goal is helping our members build same-store sales increases.”

An AWG member and a fellow board member with Garland on Food Marketing Institute’s board of directors offered praise for Garland.

“He’s doing a great job. Just in this short time since he’s been in office, I’ve seen his commitment to controlling costs and to making deals to give us the best prices,” said Joey Hayes, owner of Food Rite Stores, Dyer, Tenn.

“He negotiates strong deals with national brands and has also initiated special private-label promotions. He gives us all the tools we need. We’re excited about his leadership.”

Leslie G. Sarasin, president and CEO of FMI, also touted Garland’s leadership.

“Jerry strives to provide only the best for his retailers so that they have the tools they need to be responsive in the marketplace,” Sarasin told SN. “We are both fortunate and delighted to have the benefit of Jerry’s experience and expertise in FMI’s leadership ranks.”