Lucky Names Chairman for Gemco Unit
Lucky Stores said Tuesday that it has named Stanley Brenner, now president of the company’s Gemco division, to the new post of Gemco chairman. Samuel J. Parker, currently president of the Dublin, Calif., retailer’s automotive division, was appointed president of Gemco.
“The success of Gemco is very important to Lucky,” said Lawrence A. Del Santo, president of Lucky. “This change recognizes that importance and the need for shared responsibilities in operating an extremely complex business.”
As chairman, Brenner, 60, will continue to have overall responsibility for the division, with emphasis on merchandising, marketing and administration, the company said. Parker, 43, will report to Brenner and be responsible for the stores’ day-to-day operations.
The Gemco division, which has 80 membership department stores in California, Arizona and Nevada, has been struggling recently and reported a pretax loss of $11.6 million for the first quarter ended May 4, compared to net pretax income of $1.28 million in the same period the year before. The company attributed the recent results to heavy promotional activity undertaken to stimulate sluggish stales.
Gemco accounted for about 24% of Lucky’s $2.31 billion in sales during the first quarter.
A financial analyst who asked to remain anonymous said he viewed the management changes as a plus for all concerned.
“Brenner has probably been looking for someone to come in and be a very strong backup,” he said. “He realizes that one of his chores is to bring on a strong, broadened management grouping at Gemco.”
The analyst noted that Lucky has committed itself to upgrading the appearance of its stores and the quality of merchandise, particularly apparel. Judith Decker, a Lucky spokeswoman, said all stores will be converted over the next three years to match a prototype format.
Replacing Parker as president of the automotive division will be Alan L. Shkolnik, 45, formerly vice president-director of sales and marketing. That division operates 378 Kragen and Checker automotive parts stores in 12 Western and Southwestern states.
