A new executive will take the wheel at Advance Auto Parts in the very near future. The company named a new CEO, Thomas Greco, who will formally take the position on April 11. Greco replaces interim CEO George Sherman, who will continue as the company's president.
Does it matter?
Plucking a new CEO from the ranks of PepsiCo to run an operator of car-parts stores might seem like an odd move. But like the food and drink purveyor, Advance Auto Parts is a customer-facing company that has to operate in a competitive business against determined rivals both large and small. It's a job that demands a seasoned executive used to fighting for market share, and that's what the company appears to have landed in Greco. I think the news of his appointment will be taken positively by shareholders.
The new boss will certainly not have an easy job. Advance Auto Parts' same-store sales growth turned negative in 2015, in contrast to better-performing rivals like AutoZone . Sales were down slightly in the quarter compared to the same period one year ago, while net profit declined by 35%. Meanwhile, activist investor Starboard Value has agitated for the company to find ways to improve profitability.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends PepsiCo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
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