On October 1, Supervalu announced that Sam Duncan had informed the company’s board that he will retire as President and CEO on February 29, 2016, following the end of the company’s fiscal year. Duncan, 63, took over as CEO three years ago, following Supervalu’s sale of its five main grocery chains for $3.3 billion, a move that halved the size of the company. Since then, Supervalu has gained positive momentum, as Duncan has cut costs, lowered prices at Supervalu-owned supermarkets, expanded its supermarket discount chain Save-A-Lot, and decentralized its grocery store management. We have watched Sam’s impressive leadership turn the company culture and sales performance into a formidable competitor. Prior to Duncan’s arrival, the grocery wholesaler and retailer’s performance was weakening, losing customers to traditional grocery rivals and new competitors. Former Walmart executive, Craig Herkert, inherited a challenging situation when he took over as CEO of Supervalu in May 2009. One of the country’s largest grocery store operators at the time, Supervalu brought in Herkert to spark a turnaround in the midst of losing market share to growing competition from big-box retailers, drugstores and dollar stores. Herkert tried positioning Supervalu as a neighborhood store and emphasized lower prices. But sales and profitability kept sliding; in the six full quarters that he was at the helm, Supervalu’s retail sales decreased by more than $1.5 billion. Shareholders blamed the sales declines on Supervalu’s inflated retail pricing, which had been out of line with its competitors’ pricing. When Herkert left as CEO, Supervalu’s stock, which had already been in a steady six-month decline, was trading at $2.25 per share, approaching a new 32-year low. In July 2012, Supervalu announced that Nonexecutive Chairman of the Board Wayne Sales would take over as President and CEO. Mr.Sale expanded Supervalu’s line of store-brand products and its discount chain, Save-A-Lot, but the company’s fiscal first quarter under his leadership still saw earnings fall by 45%. Supervalu had been losing market share to lower-priced competitors, including Kroger and Safeway, and facing growing competition from dollar stores, drugstores, mass retailers such as Walmart and club stores such as Costco. Unable to turn around its supermarket business, Supervalu reached a deal to sell five of its largest grocery chains—Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market—for $100 million in cash and more than $3 billion in debt to an investor group led by Cerberus Capital Management. At that point, Supervalu consisted of a food wholesaler and regional supermarket chains. Sam Duncan was named President and CEO in February 2013 in relation to the sale. Duncan was brought in because he had an established reputation as a turnaround guru. Duncan had previously worked at OfficeMax and at Green Bay–based ShopKo Stores. When he arrived at ShopKo in October 2002, the general merchandise retailer was burdened with high debt. Duncan cut costs and remodeled stores. His retail initiatives included adding more private label brands, food, electronics and national brand maternity clothes. He store refits included the company’s first self-checkouts, and he opened the doors earlier, at 5:00 a.m. during the holiday season. Duncan left Shopko in April 2005, after engineering a $1 billion sale to private equity firm Goldner Hawn Johnson & Morrison. During his tenure, ShopKo’s stock rose from $13 to about $23. “It was a tough situation, and he did a good job of getting it stabilized,” said Rite Aid Chairman Bob Miller. Duncan moved directly to OfficeMax, taking over as Chairman and CEO in 2005. He joined when disappointed shareholders were demanding the office retailer be broken up or sold. Duncan proceeded to close unprofitable stores, trim jobs, and consolidate warehouse and distribution operations, earning praise from analysts. While the recession hindered his turnaround efforts, Duncan brought stability to the $7 billion company, cleaning up its balance sheet and keeping revenue stable even as the office supply market was hit by major business slowdowns and competition from online retailers such as Amazon. Duncan was a recipient of the 2009 CEO Diversity Leadership Award presented by Diversity Best Practices, which is awarded to CEOs who have shown a long-term commitment and to diversity that has proven through corporate initiatives. Duncan joined Supervalu in February 2013. According to Nonexecutive Chairman of Supervalu Jerry Storch, under Duncan’s leadership and direction, Supervalu has repositioned its three core business segments: independent business, Save-A-Lot and its five remaining regional retail food banners. Storch said of Duncan, “He helped stabilize the business following the sale of the five retail grocery banners and has led a turnaround in the performance of the entire company.” In his first quarter as CEO, the Save-A-Lot sales increased 2.6% to $991 million. Supervalu’s stock was just under $4 when Duncan took over, and it rose to a high of $12 in April. The company’s independent business division was recognized at the 2015 National Grocer’s Association Show for its value, expertise, private brand portfolio, and professional consulting and customization. The company credits Duncan for providing a smooth transition following its supermarket sale. Duncan, after 46 years in the grocery and retail business, said, “This is a bittersweet moment, but I am also excited by the opportunity to have more time for my family and personal interests.” The board process for naming the next CEO is under way, and Storch said the company is considering both internal and external candidates. Supervalu announced that Bruce Besanko has been promoted to the newly created role of Executive Vice President, Chief Operating Officer, reporting to Sam Duncan.