Joe Fedele

Last updated

Joseph Fedele (known as Joe Fedele, born C. 1962) [1] [2] is an entrepreneur who co-founded New York-based online specialty grocery FreshDirect in 1998 along with investment banker Jason Ackerman. Fedele served as CEO and co-chairman from 1998 to 2004. [3]

Contents

Prior to FreshDirect, Fedele was CEO and president of Fairway Market on West 132nd Street in Manhattan from 1993 to 1998. [4] [5] He helped the conversion of the business from Fairway to Fairway ("Like No Other Market"). During that period, the company disintermediated its supply chain for perishable and specialty products and introduced just-in-time inventory stocking.

Early life

Fedele was born in Brooklyn, New York and graduated from Hofstra University, acquiring a BBA in Accounting, Finance, Economics and Mathematics in 1980.

Career

PFI

In 1982, he founded PFI, one of the largest protein and perishable trading companies in the US with customers such as Marubeni, Komatsu Gosho, Sumitomo, Price Club, Walmart, and others.

By Choice

By Choice was a Harlem fresh market opened by Fedele and his partners [6] [7] in February 1991 it was converted to Fairway "Like No Other Market." [8]

The New York Times wrote that "Fedele got his perfect partners when the owners of the Fairway Market at Broadway and 74th Street signed on as partners."

Fairway market(s)

Fairway Market was founded in 1933. Fedele's involvement came when the founder's grandson Howard Glickberg's flagship store (Broadway/West 74th Street) helped restart the failed By Choice. [1]

In 1991 Fedele had helped found the "Business Process" that later converted Fairway from its small format original single store on 74th and Broadway to the new Fairway ("Like No Other Market"). This independent store in Harlem was attracting more than 20,000 customers a week within two months of opening. [9] A combination of variety, quality, and low prices in a marketplace atmosphere, attracted shoppers from all over the New York City area, from the Upper Manhattan to the then-inner-city neighborhood where it was located. Fairway achieved high quality products at low prices by cutting out all middle distributors. The store bought from "the guy who takes it from the land, takes it from the sea, puts it in a can or slaughters it. This way, it's four to five days fresher and 30% cheaper," said Fedele. [10] Fedele, who calls himself a food technologist, believes that direct buying ensures quality. Perishables that go through layers of distribution experience temperature fluctuations and inevitably suffer from adulteration. Quality is also reinforced through selectivity. "Our expertise is to pick the best quality grades in meat, fish and produce," he said. [10]

FreshDirect

In 1998, Fedele launched FreshDirect . He initially raised $120 million and leveraged a no-store concept to develop a better plan: start by dealing directly with farmers, fishermen, and slaughterhouses and build a single super-efficient manufacturing and distribution facility to hold down costs. That kept gross margins high enough to cover the added costs of reliable delivery, offered in densely packed neighborhoods. Kenneth Boyer, an associate professor at Michigan State University's business school who studies online grocers, says a visit to the company "really blew me away." [11]

Controversies

Harlem Fairway Certificate of Occupancy

At the reopened/retitled Fairway facility in Harlem, as of early 1996 they lacked a Certificate of Occupancy. Co-owner Dave Sneldon claimed to have "a temporary certificate of occupancy to operate a wholesale business." Fedele said "we don't charge retail prices." [9] A NYC commissioner claimed that they didn't apply.

Fairway/FreshDirect: Fedele's role(s)

After selling his interest in Fairway (to Glickberg and his partners) to start FreshDirect in 1998, Fedele became embroiled in a series of disputes with Fairway's owners, who accused him of over-representing his role in the creation of Fairway's Harlem branch. [12] In response, Fedele says that his description of himself as the branch's "co-founder" is an understatement. He was quoted saying, in response to Glickberg, "my former partners at Fairway did business in the traditional retail way for 30 years before we became partners, having multiple distributors between them and the products that they sold. I guess after I became their partner they had this epiphany of totally disintermediating of supply chain which resulted in the "highest value proposition possible to the consumer. Getting them better, fresher food at 30 percent savings and giving us a sustainable, competitive and differentiated advantage."

Fairway began hanging signs in its aisles attacking Fedele's credibility and the quality of FreshDirect's produce. New York Magazine wrote (May 17, 2004):

The FreshDirect posters blaring that the company was BROUGHT TO YOU BY A CO-FOUNDER OF FAIRWAY UPTOWN and featuring a photo of Fedele made [Fairway owner Howie] Glickberg furious. He posted signs inside the West 74th Street store reading FAIRWAY IS IN NO WAY AFFILIATED WITH FRESHDIRECT. FreshDirect jabbed back by sending staffers dressed as giant fruits and vegetables to pass out fliers in front of Fairway. Then the FreshDirect website added a lengthy description of Fedele's role in the uptown Fairway, headlined: HEY FAIRWAY, WHAT ARE YOU AFRAID OF? Fairway threatened to sue. [1]

Fairway never sued, but the accusatory-claims and counter-claims continued. [13]

Awards

See also

Related Research Articles

<span class="mw-page-title-main">Supermarket</span> Large format of grocery store

A supermarket is a self-service shop offering a wide variety of food, beverages and household products, organized into sections. This kind of store is larger and has a wider selection than earlier grocery stores, but is smaller and more limited in the range of merchandise than a hypermarket or big-box market. In everyday United States usage, however, "grocery store" is often used to mean "supermarket".

<span class="mw-page-title-main">Grocery store</span> Retail store that primarily sells food and other household supplies

A grocery store (AE), grocery shop (BE) or simply grocery is a retail store that primarily retails a general range of food products, which may be fresh or packaged. In everyday U.S. usage, however, "grocery store" is a synonym for supermarket, and is not used to refer to other types of stores that sell groceries. In the UK, shops that sell food are distinguished as grocers or grocery shops

<span class="mw-page-title-main">Loblaw Companies</span> Canadian retail company

Loblaw Companies Limited is a Canadian retailer encompassing corporate and franchise supermarkets operating under 22 regional and market-segment banners, as well as pharmacies, banking and apparel. Loblaw operates a private label program that includes grocery and household items, clothing, baby products, pharmaceuticals, cellular phones, general merchandise and financial services. Loblaw is the largest Canadian food retailer, and its brands include President's Choice, No Name and Joe Fresh. It is controlled by George Weston Limited, a holding company controlled by the Weston family; Galen G. Weston is the chair of the Loblaw board of directors, as well as chair of the board of directors and CEO of Canada-based holding company George Weston.

Pathmark is a supermarket brand owned by Allegiance Retail Services, a retailers’ cooperative based in Iselin, New Jersey, USA. Pathmark currently has one location in East Flatbush, Brooklyn, New York, which it has operated since 2019.

<span class="mw-page-title-main">Ingles</span> American supermarket chain in the southeast region

Ingles Markets, Inc. is an American supermarket chain based in Black Mountain, North Carolina. As of September 2021, the company operates 198 supermarkets in the Appalachian region of the Southeastern United States. The company is listed on the NASDAQ under the ticker symbol IMKTA and is part of the Global Select Market tier of trading.

<span class="mw-page-title-main">Wakefern Food Corporation</span> Cooperative group of supermarkets in the United States

Wakefern Food Corporation is an American company that was founded in 1946 and is based in Keasbey, New Jersey. It is the largest retailers' cooperative group of supermarkets and the fourth-largest cooperative of any kind in the United States. Wakefern was the largest private employer in New Jersey in 2018, with 40,200 employees. As of 2023, Wakefern has 48 member companies who own and operate 365 supermarkets, under the ShopRite, Price Rite Marketplace, The Fresh Grocer, Dearborn Market, Gourmet Garage, and Fairway Market brands in New Jersey, New York, Connecticut, Pennsylvania, Maryland, Delaware, Massachusetts, New Hampshire, and Rhode Island.

<span class="mw-page-title-main">ShopRite</span> American supermarket chain

ShopRite is an American retailers' cooperative of supermarkets with stores in six states: Connecticut, Delaware, Maryland, New Jersey, New York and Pennsylvania.

<span class="mw-page-title-main">Tops Friendly Markets</span> American supermarket chain based in the Buffalo, New York area

Tops Friendly Markets is an American supermarket chain based in Amherst, New York, that operates stores in Upstate New York, Vermont, and Northern Pennsylvania. The chain operates full-scale supermarkets. Tops is a subsidiary of Northeast Grocery, which also owns the Price Chopper and Market 32 supermarkets based in Schenectady, New York. As of June 2024, the company operated 148 stores and 59 gas station/convenience stores. The chain formerly operated stores in Ohio and Massachusetts.

<span class="mw-page-title-main">FreshCo</span> Canadian discount supermarket chain owned by Empire Company Limited

FreshCo Ltd. is a Canadian chain of discount supermarkets owned by Sobeys. It was launched in March 2010. As of September 2023, there were 100 FreshCo stores.

George Weston Limited, often referred to as Weston or Weston's, is a Canadian holding company. Founded by George Weston in 1882, the company today consists of the Choice Properties real estate investment trust and Loblaw Companies Limited, Canada's largest supermarket retailer, in which it maintains a controlling interest. The company is majority owned by Wittington Investments, Ltd Canada, a holding company that the Weston family are the controlling share holders in. Retail brands include President's Choice, No Name and Joe Fresh. The former Weston Bakeries division, which owned the brands Wonder, Country Harvest, D'Italiano, Ready Bake and Gadoua, was sold off to FGF Brands in 2022.

Price Chopper was part of the Woolworths New Zealand Supermarket Group, alongside Woolworths and Big Fresh.

<span class="mw-page-title-main">Rice Epicurean Markets</span> Grocery store chain based in Houston, Texas

Rice Epicurean Markets was an American niche grocery store chain based in Southwest Houston, Houston, Texas. There is now just one supermarket left of the chain. Prior to 2012 the company operated five Rice Epicurean Markets, which ranged in size from 25,000 to 42,000 square feet (3,900 m2). At its height, it operated 35 stores. The last Rice Epicurean Market is wholly owned by founding family members.

<span class="mw-page-title-main">Pattison Food Group</span> Canadian operator of supermarkets

Pattison Food Group is an operator of supermarkets, based in Langley, British Columbia. It is owned by the Jim Pattison Group. Most stores are under the Save-On-Foods banner, which it launched in 1982.

<span class="mw-page-title-main">Karns Quality Foods</span> Privately owned U.S. supermarket chain

Karns Prime & Fancy Food, Ltd., doing business as Karns Fresh Foods, is a privately owned supermarket chain in the Harrisburg metropolitan area of Pennsylvania. The company's corporate headquarters is in Mechanicsburg.

FreshDirect is an American online grocery company and among the first enterprises to sell and deliver perishable foods to consumers without maintaining a retail operation. It offers its services via a website and mobile app.

<span class="mw-page-title-main">Sprouts Farmers Market</span> American supermarket chain

Sprouts Farmers Market, Inc., is a supermarket chain headquartered in Phoenix, Arizona. The grocer offers a wide selection of natural and organic foods, including fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat, poultry, seafood, deli, baked goods, dairy products, frozen foods, natural body care, and household items. Sprouts employs 35,000 workers and operates more than 400 stores in 23 states.

<span class="mw-page-title-main">Gristedes</span> New York City-based chain of supermarkets

Gristedes is a New York City–based chain of supermarkets. It serves a mostly urban customer base.

<span class="mw-page-title-main">Fairway Market</span> American northeast grocery chain

Fairway Market is a small American grocery chain founded in 1933 by Nathan Glickberg. It is one of the brands owned by the Wakefern Food Corporation, whose flagship supermarket cooperative network is ShopRite.

Best Market was a family-owned, regional supermarket chain with 30 stores in New York, Connecticut, and New Jersey. The company was headquartered in Bethpage, New York, and had been owned by the Raitses family since the company's first store opened in Lake Ronkonkoma, New York, in 1994.

Dan Glickberg is an American businessman. He is a member of Fairway Market's founding family and served as executive vice president and a director of the company. Additionally, he is the founder of Dan Glickberg Food, and is a featured investor on the Food Network show Food Fortunes.

References

  1. 1 2 3 Smith, Chris (2004). New York Magazine, May 24, 2004. Archived June 5, 2004, at the Wayback Machine
  2. ↑ NYMag: By Choice was the brainchild of 41-year-old Brooklyn native Joe Fedele ...
  3. ↑ "The Online Grocer Version 2.0 Forget Webvan, say the founders of FreshDirect. Their business is about food--and that's why they're sure it's going to succeed. - November 25, 2002". archive.fortune.com. Retrieved 2019-02-14.
  4. ↑ Frank Kammel (1996), Supermarket Business, May 1996, pg. 179
  5. ↑ Michael Carry (1996), Progressive Grocer, April 1996, pg. 39
  6. ↑ David Gonzalez (April 20, 1996). "About New York; Lobbying For Markets (And Himself)". The New York Times .
  7. ↑ "Other partners in By Choice said ..."
  8. ↑ Jennifer Kingson Bloom (March 12, 1995). "Neighborhood Report, Harlem: Fairway partners partner with By Choice Market to Change to Fairway "Like No Other Market"". The New York Times .
  9. 1 2 Ed Shanahan (February 19, 1996). "Market Forces". New York . New York Media, LLC.
  10. 1 2 "'A cultural happening.'(Fairway market)(Store of the Month) - Free Online Library". www.thefreelibrary.com. Retrieved 2019-02-15.
  11. ↑ "The Big Cheese Of Online Grocers Joe Fedele's inventory-turning ideas may make FreshDirect the first big Web supermarket to find profits. - January 1, 2004". archive.fortune.com. Archived from the original on February 15, 2019. Retrieved 2019-02-15.
  12. ↑ S. Jhoanna Robledo (May 23, 2004). "How Unfair". New York .
  13. ↑ Florence Fabricant (June 4, 2003). "Grocers Face Off Again on the West Side". The New York Times .
  14. ↑ "EY Hall of Fame".
  15. ↑ "Ernst & Young - Hall of Fame". Archived from the original on 2006-06-14. Retrieved 2015-08-03.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.