Corporate shakeup at Loblaws?

The Globe and Mail reports that some are predicting a management shakeup at Loblaws.

Loblaws is about a year into what has been called a three- to five-year turnaround, but the article notes empty shelves and underutilized space at the retailer.

The company is controlled by the Weston family. According to the article, "Loblaw has been led since the fall 2006 by a triumvirate of executives led by Galen G. Weston of the controlling Weston family. The others are deputy chairman Allan Leighton, a long-time adviser to the Westons, and Mark Foote, president of Loblaw and the principal operator behind the new strategy.

"We believe that the current triumvirate, individually talented though it may be, is not appropriate for long-term effectiveness," retail analyst Perry Caicco at CIBC World Markets said in a report.

"We are not going to add to the speculation about the specific nature of a management change, but suffice it to say that the current structure is not likely to be maintained past the second quarter of this year."

One analyst noted that "Loblaw's biggest problem is its superstores, which now have rows of empty shelves because the company is reducing its general merchandise offering and has too much space in the giant stores. He said the stores look like a grocery store "with general merchandise as an afterthought."