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Nation’s first Goodwill-owned supermarket to open in NW Roanoke

Roanoke-based Goodwill Industries of the Valleys broke ground Nov. 14 on Melrose Plaza, a community hub that will be anchored by the nation’s first full-scale, full-service grocery store owned and operated by a Goodwill organization.

Slated to open in December 2024 in a Northwest Roanoke food desert, the 25,000-square-foot Market on Melrose is expected to create 50 to 60 jobs and will offer online ordering, curbside pickup and delivery options.

It’s part of a $30 million project to repurpose Goodwill’s Roanoke Jobs Campus headquarters at 2502 Melrose Ave. into the 79,000-square-foot Melrose Plaza, which will also house Goodwill’s Excel Center, a tuition-free adult high school offering certifications and high school diplomas. Plaza tenants will include an existing public library branch, a holistic community wellness center and a Bank of Botetourt center that will provide retail banking and financial coaching.

“While efforts for a grocery store have been ongoing for many years now, the timing couldn’t be better,” explains Mindy Boyd, chief operating officer for Goodwill Industries of the Valleys. “Federal ARPA [American Rescue Plan Act] funds awarded to the City of Roanoke afforded a $10 million grant to uplift a grocery in a food desert. With our renewed mission and vision, the well-located property available, and a grant from the city, it made it a complete win for the community.”

Kjellstrom + Lee is the construction management partner for Melrose Plaza. In addition to the $10 million in federal funding, the project has an $8 million in-kind real estate donation from Goodwill. Another $12 million is anticipated to come from the federal New Market Tax Credits Program, additional public funding, grant opportunities and private contributions.

Goodwill Industries of the Valleys is partnering with the City of Roanoke and other stakeholders on Melrose Plaza. The nonprofit Goodwill will own and operate Melrose Plaza and Market on Melrose. The grocery store will be the first phase of the project to open.

The partnership, says Roanoke City Manager Bob Cowell, “will deliver exactly what the Northwest neighborhood has long advocated for and needed, fulfills a key priority of the mayor and City Council [and] implements the top priority identified by the citizen advisory board established to aid the council in their use of federal COVID relief.”  

Trader Interactive CEO Lori Stacy to retire

Trader Interactive CEO Lori Stacy will retire Dec. 14 and Chief Operating Officer David McMinn will succeed her in leading the Virginia Beach-based online marketplace for boats, recreational vehicles, motorcycles and other niche vehicles.

Stacy, who has served as CEO since 2017, will take on the new position of chair of Trader Interactive’s board after her retirement, the company announced Monday. She joined the company as a sales manager in Florida in 1997, when its predecessor company, Auto Trader magazine, was owned by Norfolk-based Landmark Media Enterprises. The company evolved into Trader Interactive, an umbrella for several online-only marketplaces, in 2010.

“Now is the right time for me to step back and embark on a new chapter in my life so I can focus on my passions and spend more time with my family,” Stacy said in a statement. “I have never been more confident in the team and the work we are doing than right now. Our leadership team is the strongest it has ever been, we have an amazing partnership with our owners, and I see nothing but positive momentum ahead. TI is a part of me, and I am dedicated to seeing it thrive in the years to come.”

David McMinn
Photo courtesy Trader Interactive

Australian auto retailer carsales.com acquired 49% of Trader Interactive in August 2021 for $624 million and then announced plans in June 2022 to buy the remaining 51% of the company for $809 million. Trader Interactive’s valuation was estimated to be $1.87 billion at the time, making it a unicorn in venture capital parlance, or a privately held startup with a total market value of $1 billion or more.

McMinn has served as chief operating officer and chief financial officer at Trader Interactive. Before joining the company in October 2022, he was COO of Trader Corp., a Canadian classified advertising company. He has also served in senior leadership roles in sales and operations with the Trader Media Group in the United Kingdom. He also served as CFO of Sensis Classifieds in Australia. He was named COO of Trader Interactive in April, and a new COO has not yet been named.

“Trader Interactive is unique with a thriving culture and so many opportunities to continue to build value for our customers,” McMinn said in a statement. “Lori and the team have built a great business and I am honored to lead the world-class team here at TI. We have an exciting future ahead of us.”

Trader Interactive runs marketplaces for buyers, sellers and renters of powersports and recreational vehicles, aircraft, marine and commercial vehicles, and heavy equipment. It reaches more than 9 million unique monthly users through brands such as Cycle Trader, RV Trader, Commercial Truck Trader and Equipment Trader.

Travis Hill to step down as Va. ABC’s CEO

Travis Hill, CEO of the Virginia Alcoholic Beverage Control Authority, announced Thursday he plans to step down from his post at the ABC, where he’s worked since 2014.

Hired nine years ago as the Virginia ABC’s chief operating officer, Hill became CEO in 2018 after managing the former state department’s transition to a semi-independent authority with more autonomy, Over the past nine years, the ABC has brought in more than $4 billion in profits and tax revenue to the state, according to Thursday’s announcement, and it moved its headquarters from Richmond to Mechanicsville in Hanover County.

Starting in 2018, the Virginia ABC surpassed $1 billion in liquor sales each year and broke sales records each year of Hill’s tenure as CEO. In fiscal year 2023, the authority exceeded its gross revenue from the previous year by $54 million, with $1.4 billion in sales.

However, Hill also presided over the authority during a period of recent controversy. In June, reports emerged that employees embezzled money from seven ABC stores last year, taking advantage of a cash register system vulnerability. A September 2022 audit uncovered the thefts, but ABC leaders said they didn’t learn about it until February 2023. Four higher-up employees were later placed on leave, but it’s unclear if that was connected to the thefts. Still, ABC’s board chair, former state Del. Tim Hugo, expressed perplexity over how agency leaders could be unaware of the problem for six months.

During a town hall meeting Thursday, Hill said, “Joining Virginia ABC in its prior form as a department and then leading its transformation to an authority was an honor as I learned about our unique place in Virginia’s government as a source of revenue and regulation. We held commitments to generating profits through the responsible sale of spirits while ensuring public safety by enforcing regulatory standards that afforded a fair marketplace.

“Our unique organization had many partners, thousands of employees and responsibility for an industry that has not one, but two, constitutional amendments dedicated to its operations. Together, we transformed into a modern governmental authority, building a distribution center that supports creative retail offerings through the promotion of products that come from every corner of the world and this commonwealth.”

Hill did not disclose what his plans are going forward, saying only, “I look forward to new challenges ahead where I can apply the lessons I’ve learned while working with you.”

Under Hill, Virginia ABC managed changes in the sale of alcohol during the COVID-19 pandemic, when state policies allowed the sale of mixed drinks off-site by restaurants, a move that kept some Virginia eateries afloat during the shutdown, when they were limited to carryout and delivery options. Also, Gov. Glenn Youngkin’s administration was displeased with a decline in revenue the authority was bringing to the state, according to a Virginia Mercury report in July. In an ABC board meeting, the state’s chief transformation officer reportedly noted that the ABC’s operating costs grew since 2017 — as did sales, but not to the same degree, and the authority’s contributions to the state declined from 2021 to 2023.

According to an ABC spokesperson, Hill’s last day will be Nov. 10, and Chief Law Enforcement Officer Thomas Kirby will serve as interim CEO. Kirby, according to his bio, joined the ABC as a special agent in the bureau’s Hampton and Richmond regional offices in 2001, and previously served as a police officer in Newport News and Hampton.

Hill previously served as state deputy secretary of agriculture and forestry before joining the Virginia ABC. He is currently president of the National Conference of State Liquor Administrators and is a graduate of the University of North Carolina, from which he received his bachelor’s and law degrees.

Fed Fifth District economy grows slightly

The economy in the Federal Reserve’s Fifth District (a multistate region including Virginia, North Carolina, South Carolina, West Virginia and Maryland) grew slightly in recent weeks, according to the latest edition of the Federal Reserve’s Beige Book, released Wednesday.

Published eight times per year, the Beige Book is based on anecdotal information about economic conditions gathered from the 12 Federal Reserve Banks. It is compiled from reports by bank and branch directors, as well as information gathered from business contacts, economists, market experts and other sources. Wednesday’s release is an update from the Fed’s July 12 report.

Here’s what the most recent Beige Book edition revealed about the direction the economy is taking:

Employment in the Fifth District increased slightly over the most recent reporting period but not as quickly as it did in prior reports, according to the Fed, and some firms reported that the labor market continued to be tight. Service providers noted that the labor pool improved, though, helping to slow wage growth.

Price growth eased in recent weeks but remained high. Price growth for manufacturers dropped to an annual rate slightly over 3%, according to Fed surveys. For service providers, annual price growth remained at about 5%.

Manufacturing slowed, and hiring for the sector remained difficult, according to respondents.

Import volume in Fifth District ports dropped back to pre-pandemic levels, largely because of a decrease in consumer goods. Imports were lower year-over-year but flat month-over-month, ports reported. Exports rose slightly, mainly for agricultural products, wood pulp, resins and vehicles. Container dwell times dropped to normal levels, according to the Fed.

Trucking firms reported steady demand and moderate increases in contract rates. Labor, parts and new equipment costs were high, however.

Consumer spending grew modestly, according to respondents. Auto sales remained steady, and retail and food service companies saw steady or modest sales growth. Furniture stores reported declining sales, likely because of slower real estate markets.

Travel and tourism rose because of summer travel. In the Fifth District, revenue grew because of room nights sold, but average room rates were down compared to last year. That wasn’t the case for Virginia from January through July — hotel revenues rose compared with 2019 because of high room rates, but hotel rooms sold dropped.

The residential real estate market remained tight across the district and saw a seasonal slowdown. Respondents reported increased sales prices because of low inventory. Virginia has reflected the larger trend, with home sales slowing because of the low inventory and increased prices.

Fifth District commercial real estate activity slowed, although retail and industrial leasing saw rising rents. Companies continued to downsize offices. Office rental rates were flat, but landlords offered additional incentives to tenants. Multifamily rents began to soften as more units came onto the market.

In the financial sector, consumer and commercial loan demand remained stable at pre-pandemic levels. For banks, deposit levels continued to shrink.

Virginia ABC: Vodka is Va.’s best-selling spirit

Tito’s Handmade Vodka notched its sixth year as the commonwealth’s most popular liquor at Virginia Alcoholic Beverage Control Authority stores in fiscal 2023.

According to VABC, the Austin, Texas-based craft vodka accounted for $72 million in sales in fiscal 2023, up $5.1 million over the prior year. Tito’s out-guzzled other spirits by a long shot; Hennessy VS cognac ranked No. 2 in sales at $44 million, Jack Daniel’s Old No. 7 whiskey chased behind, ranking No. 3 at $30.1 million, followed by Patron Silver tequila, at $28.6 million, and Jim Beam straight bourbon whiskey, which accounted for $24 million in sales.

Among the top 10 best-sellers, Jameson Irish whiskey rose to No. 6 and Maker’s Mark straight bourbon remained at No. 7. Crown Royal Canadian whiskey dropped to No. 8, Grey Goose vodka rose to No. 9 and Lunazul Blanco tequila joined the top 10, rising 10 spots to No. 10. Fireball whiskey fizzled, dropping to No. 14. The spirit, which has been among the state’s top 50 products, saw the year’s largest decline at 18.4%, with total sales dropping by $3.2 million.

The best-sellers list, released Tuesday, follows a report of record revenues for ABC in fiscal 2023. The authority topped off at $1.47 billion in gross revenues last year, up $54.3 million over the previous fiscal year.

Among Virginia’s top-selling categories for fiscal 2023, vodka led at 1.64 million cases sold, followed by tequila at 885,876 cases, an 18.4% increase from the previous year. Tequila, which grew from an 11.8% to 13.7% market share, shot past straight bourbon whiskey, which accounted for 780,777 cases in fiscal 2023, followed by cordials/liqueurs at 514,517 cases and rum at 470,292 cases.

The fastest-growing categories were moonshine at 25.6%, tequila at 18.4%, specialty drinks (such as gift sets) at 14.8%, domestic ready-to-drink cocktails at 10.1% and straight rye whiskey at 9.8%. The biggest declines were seen in Cognacs/Armagnacs at 14.6%, and Canadian whiskey at 10%. Sloe gin grew 64% but is Virginia ABC’s smallest category, with only 141 cases sold.

Sales of Virginia-distilled spirits increased to $24.1 million in sales, with more than 1 million bottles sold. Top sellers in that category included Bowman Brothers Virginia straight bourbon, at $1.6 million, Cirrus Vodka at $1.2 million, John J. Bowman Virginia straight bourbon, with $841,852 in sales, Isaac Bowman port finish whiskey at $623,848 and Virginia Highlands War Horn Whiskey, which accounted for $446,898.

Virginia ABC added four stores in fiscal 2023, bringing its total to 399.

Here are the top five stores by gallons sold:

  1. Store No. 256, in Virginia Beach, 113,346 gallons
  2. Store No. 219, in Fairfax County, 103,139 gallons
  3. Store No. 278, in Virginia Beach, 97,326 gallons
  4. Store No. 225 in Virginia Beach, 94,302 gallons
  5. Store 280, Chesapeake, at 92,432 gallons.

Retail | Wholesale | Food | Beverage 2023: ARIE KOTLER

In June, Arko, the nation’s sixth largest convenience store chain, with more than 1,500 company-operated stores in 30 states, made the Fortune 500 list for the second time, ranked at No. 460, 38 places higher than its 2022 debut.

The parent company of Henrico-based GPM Investments, Arko brought in $72 million in net income in fiscal year 2022, compared with $59.4 million the previous year.
Arko has 1,848 employees in Virginia and 13,901 worldwide, after a series of acquisitions of convenience store chains and fuel wholesalers.

An Israeli native who relocated to the U.S. in 1997, Kotler founded GPM in 2003, sold the business and reacquired it in 2011. In 2020, Arko merged with Haymaker Acquisition Corp. to create Arko Corp., a U.S.-listed public company.

Arko was unsuccessful this year in its attempt to acquire TravelCenters of America, but in June Arko completed its $140.2 million acquisition of the retail and fleet fueling assets of WTG Fuels Holdings, marking the company’s 24th acquisition.

HOBBY/PASSION: My business is my passion. I love to build. I work every day because I enjoy working with people and our great employees, and I am driven by creative, opportunistic dealmaking.

Retail | Wholesale | Food | Beverage 2023: WILLIAM D. ‘BILL’ NASH

Nash began at CarMax in 1997 as an auction manager, working his way up to president and CEO in 2016. Founded in 1993 in Richmond as a subsidiary of electronics retailer Circuit City, CarMax is the country’s largest retailer of used cars, reporting $31.9 billion in 2022 revenue and employing more than 30,000 people.

In January, CarMax launched a new online prequalification capability that allows customers to shop with personalized financing while avoiding impact to their credit score. In May, the company joined the WNBA Changemakers program, which promotes women’s sports and advancing diversity, equity and inclusion. In CarMax’s 2023 Responsibility Report, Nash expounded on his goals of making the company the leading retailer of used electric vehicles and achieving net-zero carbon emissions by 2050.

A 1991 graduate of James Madison University, Nash started out working in payroll and accounting at Circuit City, a Richmond-based Fortune 500 company that went under in 2009 and has been reincarnated as an online retailer.

HOW I UNWIND FROM WORK: I’ve always been an avid basketball fan, so playing basketball and exercising are my favorite ways to decompress.

Retail | Wholesale | Food | Beverage 2023: POUL WEIHRAUCH

Since taking over the reins at the candy and pet food giant in September 2022, Weihrauch has set a goal of doubling its sales by 2033. With $45 billion in sales in 2022, Mars is the largest privately held company in Virginia and the fourth largest in the nation. It has approximately 140,000 employees in 80 countries.

Weihrauch joined Mars in 2000 as European brand leader for Snickers candy bars, and worked his way up the corporate ladder, becoming president of food and multisales and then president of Mars’ global pet care brand. He previously worked for Nestlé in sales and marketing and started his career at Stimorol Chewing Gum in his home country, Denmark. Mars expects to almost triple its spending on a comprehensive sustainability agenda, he said, calling political attacks on corporate social responsibility and environmental priorities “nonsense.”

Weihrauch earned a degree in business economics and an MBA from Aalborg University in Denmark. He also holds a master’s degree in international marketing from Strathclyde Business School in Scotland.

Retail | Wholesale | Food | Beverage 2023: JACK WOODFIN

For Woodfin, heating and cooling is a family affair: His parents, John and Anne, started Woodfin Heating in 1977 to sell heating oil, growing it into one of the largest privately held HVAC-related businesses in Virginia. A Virginia Military Institute and University of Virginia Darden School of Business alum, Woodfin began working with his parents in 1995, when he joined the business as a retail manager. He took over the business in 2010 after his father’s death.

Woodfin Heating now provides HVAC installation and servicing, electrical and plumbing services, indoor air solutions, home security and fuel delivery. The company also owns a range of other businesses, including EMC Mechanical Services and Capitol Heating and Cooling, as well as 20 convenience stores in the greater Richmond area.

Woodfin played on VMI’s varsity tennis team and still plays as a hobby. His other hobbies include NASCAR and go-kart racing.

Retail | Wholesale | Food | Beverage 2023: WARREN THOMPSON

Thompson’s start as an entrepreneur came as a teen, when he purchased and ran his family’s hog farm in Windsor. He now heads the largest minority-owned food and facilities management corporation in the nation, a company he founded in 1992 with the purchase of 31 Bob’s Big Boy restaurants.

Thompson Hospitality provides dining services for more than 200 companies, universities and hospitals, representing more than $2 billion in business. The company also owns several restaurant chains, including Milk & Honey, Matchbox and Wiseguy Pizza, running about 70 restaurants, mostly in the Washington, D.C., area but expanding into Ohio and Florida.

Thompson graduated from Hampden-Sydney College and University of Virginia’s business school. Attending U.Va. was particularly meaningful, considering that racial segregation prevented his father, Fred Thompson Sr., from attending the school decades earlier. Thompson is a member of the American Heart Association CEO Roundtable and sits on Performance Food Group’s board of directors.

IF I HAD A TIME MACHINE, I’D MEET: Martin Luther King Jr. “The time is always right to do what is right” is a quote I live by.

HOBBY/PASSION: Boating