Marshall Faces Challenges at A&P

Some of the pressing issues faced by new A&P CEO, Ron Marshall include bringing order to the iconic food brand's finances. Taking the reins of the company just after its reported $500M+ loss means that aggressive cost cutting may be the order of the day. Other equally critical challenges include bringing Pathmark more fully into the A&P company fold. The synergies expected from its integration have not yet materialized and, as some observers have remarked Pathmark's own momentum prior to its takeover by A&P has stalled.

While Marshall has a track record as a turnaround expert analysts are quick to point out that his actions are primarily finance based with bond to debt conversions and the jettisoning of poor performing assets his principle first choice methods. His interest in operations management and retail marketing are more suspect although it is expected that he will be swift to make management changes consistent with his vision for the company.

Some of the first steps he may take involve analysis of the geographys where A&Ps portfolio is underperforming. These include areas north of New York City and Baltimore, Maryland where he could elect to vacate markets in favor of a more concentrated focus on places like New Jersey and Manhattan where the list of A&P brands are stronger.

Adding to the obvious financial urgency to make bold moves is the relatively aggressive nature of one of the company's new investors, Yucaipa. Ron Burkle, the billionaire head of Yucaipa demands top performance from the company's in which he is invested. Most certainly he will expect the performance of A&P stock to climb. In this Marshall seems to be a good fit. Even when other companies he has led faced similar hurdles to profitability Marshall's presence was reflected in climbing common stock value that pleased major investors.