Cleveland’s beloved Malley’s Chocolates is marking its 90th anniversary this year with a major first: a non-family member is now leading the iconic brand. Megan Gillum — who spent two decades at American Greetings in analytics, strategy and merchandising — joined Malley’s in 2024 as vice president of retail strategy and operations and was named president this February. Since then, she has overseen day-to-day operations across 18 stores, accelerated product development and introduced new ideas while staying true to the company’s deep-rooted legacy. ICSC Small Business Center contributing editor Rebecca Meiser spoke with Gillum about her path to the role and what it takes to lead a family-founded business into its next chapter.

What drew you to Malley’s?

I wanted to be part of a company grounded in Cleveland. As a Clevelander, I’ve always loved Malley’s — high-quality products, a longstanding institution, deep community roots and so much legacy. It’s retail, it’s all the things I enjoy: people, products customers engage with. And who doesn’t love chocolate?

What do you think convinced the Malley family that you were the right person to lead the company?

I wasn’t part of the process firsthand, but I understand it was long and intentional. They initially looked for a COO, then engaged a recruiter to clarify what they needed and created a vice president of retail role. I think they saw my business and financial acumen and my immediate investment in the company. I visited seven stores before my first interview to speak knowledgeably and immerse myself. They also saw I loved Cleveland and was committed to preserving their legacy.

When you joined the company, did you have a sense of what your path to leadership might look like?

I started in June 2024. In February, I was named president while our chairman served as interim CEO, and Mike — the last Malley — stepped into a chief strategy officer [role]. Mike retired at the end of September, leaving me to oversee day-to-day operations. We had talked about the future when I joined, and thankfully it has unfolded that way.

Stepping into a legacy, family-rooted business can be delicate. What were your first steps to earn trust and understand the culture?

I spent a lot of time listening. I conducted a listening tour of all 18 stores, met with every manager and spent time with Mike learning. Then I looked for quick wins, because those are the things that build trust. Like: “OK, she heard me.” One major example was our point-of-sale system. It was failing, and there was real concern about getting through Christmas with the system.

Honestly, I think [the team] just didn’t have capacity before me to think about [switching it out] and do it; that was part of the reason I was brought in. But that gained some trust right off the bat. Other things were simpler, like making sure key products were always in stock.

Malley’s brand is steeped in nostalgia. How do you introduce new ideas while protecting what customers cherish most?

We stay true to the classics. We innovate through limited-time offers, thinking about natural extensions of how customers celebrate and how to reach the next generation. For example, we introduced Dubai Bites this year. We were late to the game [on the Dubai chocolate trend], but it was because we wanted to do them right. In order to get it right, it took us tome to develop.

On the other hand, dirty sodas [“spiked” with cream or flavored syrups] were a quick-turn idea inspired by my daughter and in stores within four weeks. The key is judging effort versus impact: low-lift ideas that excite without distracting from classics.

How do you decide when a store needs updating and what scope that refresh should take?

There are a couple of signals. First, we look at whether there’s simply a need. With our recent refresh in Lakewood, for example, we needed new floors and new bathrooms, so that was a natural place to start. We also look at what the return on investment will be and how the store is used. The first location we chose to update was our flagship because it’s a parlor where we sell both chocolate and ice cream. You’re going to draw in some of that younger consumer with the ice cream, and you have both sides of the business to capitalize on.

Looking back on your first months as president, what are you most proud of so far?

There are so many things, but a big one is getting projects across the finish line quickly. We’ve launched new products in record time, executed high-end collaborations and developed partnerships we’d never done before. For the first time in 90 years, we partnered with a longstanding Cleveland grocer [Heinen’s.] People worried it might hurt retail sales, but it’s been a great decision.

What have you learned about introducing a deeply regional brand like Malley’s to new markets?

It’s tough being unknown in a new market. In Chicago, we sampled in all five Heinen’s stores and worked with managers to turn them into brand ambassadors. We adapted packaging, because in Cleveland people recognize us after 90 years but in Chicago, we’re just another product on the shelf. We learned not every top seller at home sells elsewhere. Our number one in Cleveland wasn’t number one in Chicago, so we focused on sampling it and letting people there fall in love with it like we do.