THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Friday, February 7, 1997 TAG: 9702070542
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: 78 lines
Less than two years after Ronald E. Johnson took the reins of a troubled supermarket chain in Florida, he had improved, packaged and sold it to grocery titan Food Lion Inc.
At Norfolk-based Farm Fresh, the new chief executive officer's role isn't so clear, industry observers say. He's taking on a 50-store chain that might be sold, parceled off or restructured within the next year. And his hands may be tied during the process.
But the question remains: Can Johnson work the same magic at Hampton Roads' largest grocer that he did in Florida?
``Is this a caretaking job or is he actually going to be given the opportunity to impose his talents on improving the situation?'' asked Jeffrey Metzger, publisher of the industry publication Food World. ``I think that remains to be seen.''
Johnson, however, knows what he's walking into. He was a top executive at Farm Fresh before he left to head Kash n' Karry Food Stores in Tampa, Fla., in 1995. He has kept up with Farm Fresh's situation. And he knows the company needs to do something with its mountain of debt.
``He knows exactly what's going on,'' said Michael E. Julian, Farm Fresh's former president and chief executive. ``He's coming in with his eyes wide open.''
Julian announced Monday that he's leaving Farm Fresh to head Jitney Jungle Stores of America, a supermarket chain in Jackson, Miss. Farm Fresh's directing board has appointed Johnson to fill the position.
Johnson, who was moving from Tampa to Hampton Roads, could not be reached this week.
He joined Farm Fresh in 1988 as a vice president and was executive vice president and chief operating officer before he left in January 1995. He has remained on the company's directing board.
At Farm Fresh, Johnson was known for his work in improving store operations. Cash flow and same-store sales - revenues at stores open at least a year - reached high levels during his tenure.
Johnson also was known for his patience and skill with employees and managers.
``Ron is probably one of the best teachers in the business,'' Julian said. ``He has a very developmental style of management.''
Johnson moved on to troubled Kash n' Karry two years ago. His work at the Florida chain of grocery stores would help establish his reputation as a turnaround artist.
Kash n' Karry had its own set of problems. When Johnson arrived, it was in the process of bankruptcy protection. And it was losing money because of growing competition.
Under Johnson, Kash n' Karry posted its first sales gains in years, partly because of remodeling efforts. The chain also pumped up its advertising budget to lock horns with its biggest competitor in Florida, Publix Super Markets.
With the grocer's performance improving, Johnson was able to swing a better deal with Food Lion. Salisbury, N.C.-based Food Lion purchased Kash n' Karry in December 1996.
As a result of the sale, Johnson was available for the Farm Fresh position.
At Kash n' Karry and Farm Fresh, employees say Johnson is well-liked and respected for his pragmatic, calm approach to business. The fortyish businessman cracks jokes, has a sort of ``country'' manner and remembers almost everyone - from store deli worker to executives, those in the industry say.
``He can meet you the first time, and then go back to a store three months later and know your name,'' said Georgina Graham, Johnson's assistant at Kash n' Karry.
Employees, suppliers and others in the industry may see a difference in temperament in Farm Fresh's old and new leaders. While Julian has a reputation for growling like a bear at times, Johnson takes a calmer approach.
``If you had a scale from 1 to 10, with 1 being patient and 10 losing one's temper, I think Ron would be on the lower quadrant,'' Julian said.
And Julian?
``I'd probably be on the upper end,'' he joked. ILLUSTRATION: Photo
Ronald E. Johnson
KEYWORDS: FARM FRESH