Merlo to assume CEO role at CVS Caremark
WOONSOCKET, R.I. – The next chapter for CVS Caremark officially is under way as the company announced on Monday the next stage of its previously announced transition plan and officially named Larry Merlo, president and COO, as CEO, effective March. 1.
Tom Ryan, chairman, president and CEO, will remain nonexecutive chairman until his retirement at the company’s annual meeting of shareholders in May.
“Since we announced our transition plan in May of last year, Larry and I have worked hard to successfully transition roles and responsibilities, and Larry is ready to be CEO,” stated Ryan. “After 37 years with our company and 16 years as president, I am more confident than ever that our assets along with our innovative products and services are lowering healthcare costs and improving outcomes. Our success took years of hard work, commitment and dedication to our mission from the more than 200,000 CVS Caremark colleagues we have across the company. I am so proud of all of the work we have accomplished together, and remain confident that this success will continue well into the future under Larry’s leadership.”
Prior to being named president and COO in May 2010, Merlo served as EVP of the company and president of CVS/pharmacy retail operations, overseeing a portfolio of more than 7,000 CVS/pharmacy locations. Merlo began his career in chain pharmacy in 1978 as an assistant manager with People’s Drug in Washington D.C. He joined CVS as area VP of the metro Washington D.C., area in 1990 — the year CVS acquired People’s Drug. Over the years, Merlo has held various positions at CVS, including EVP stores of CVS Corp. from April 2000 to January 2007; and EVP stores of CVS Pharmacy, Inc. from March 1998 to January 2007.
“I am grateful for the opportunity to lead this company. As the nation’s premier integrated pharmacy healthcare provider we have a tremendous opportunity to make a difference in the lives of those we serve. I look forward to continuing our positive momentum and to further enhancing the long-term value of our company. I’ve worked directly with Tom for the past 20 years and I want to thank him for his mentoring and leadership and am confident we will continue to build on his legacy,” Merlo stated.
Upon Ryan’s retirement as chairman in May, the company plans to elect David Dorman as the next non-executive chairman of the board of directors at the 2011 Annual Meeting. Dorman has been on the CVS Caremark board since 2006.
“On behalf of the company’s board of directors, I would like to thank Tom for all he has done for CVS Caremark. Under his leadership, CVS has evolved from a regional drug store chain with revenues of $5 billion in 1994 to the nation’s largest pharmacy healthcare provider with revenues approaching $100 billion. And along the way, Tom has built a culture focused on innovation, customer service and flawless execution. It is the culture Tom fostered over his 37-year tenure that differentiates CVS Caremark in the marketplace today,” stated Terry Murray, lead director of CVS Caremark.
RadioShack CEO Julian Day retiring
Fort Worth, Texas — RadioShack said Monday its chairman and CEO Julian Day is leaving and announced disappointing fourth-quarter guidance. Day, 57, will retire as chairman, CEO and a director as of its annual shareholder meeting on May 16.
The company brought on former investment banker Day — best known for pulling Kmart out of bankruptcy — as chairman and CEO in 2006 to help turn around results.
Since then the company has shifted its focus to smart phones and wireless plans and mobile phone kiosks with some success. But Monday it said "disappointing performance" from its T-Mobile business and a shift in sales toward lower margin handsets hurt results in the fourth quarter.
TCBY in long-term deal with Lone Star Yogurt to open 200 stores
Salt Lake City — On the heels of a new self-serve prototype, TCBY, announced an agreement with Lone Star Yogurt to open 200 stores over the next 10 years with area developer.
Lone Star Yogurt plans to open its first TCBY self-serve store in January in Lone Star’s hometown of Tyler, Texas. It has committed to open another 24 TCBY self-serve stores in East Texas, Dallas, Ft. Worth and Houston in the next 18 months.
“With frozen yogurt operators continuing to outpace their ice cream counterparts within the U.S. frozen dessert segment, TCBY’s announcement to open 200 new stores comes as no surprise,” said Darren Tristano, executive VP at Technomic. “With many American consumers continuing to look for healthier alternatives to traditional desserts, frozen yogurt will likely continue a positive growth pattern for years to come. As a well-established brand with decades of history, TCBY will have a leg up within the yogurt segment.”
Self-serve model driving interest
Since testing the self-serve model in both corporate and franchise-owned stores earlier this year, coupled with a new store design and brand identity, TCBY is on track this year to achieve its best franchise sales numbers in more than a decade. While the self-serve model seems to be giving the entire industry a boost, TCBY’s foray into self-serve and its competitive advantages in taste and health attributes, make it the formidable player in the industry again.
“We are making an important statement with a deal of this magnitude,” explains Tim Casey, CEO of TCBY. “We have seasoned area developers and franchisees who believe as we do that TCBY is once again the fro-yo brand of choice among franchisees and consumers. We feel like we have always owned taste. Today we have the most relevant store model in self-serve, coupled with a modern design that’s resonating with our customers who have experienced it in our prototype stores. Not only will we carry tremendous momentum into 2011, but we anticipate the release of some significant category innovation to support record growth.”