A very illuminating article on the one year anniversary of the worker walkout that saved a landmark local company and thousands of well paying jobs with good benefits and generous profit sharing. Contrary to same nameless naysayers, the shelves are stocked and the sky didn’t fall.
Despite losing nearly half a million in lost sales, last year was still it’s most profitable on record.
The company is on track to record total revenues of about $4.8 billion in 2015, top executives say, the most in its nearly 100-year history. It is also in expansion mode, opening five new stores in the last year, some with upscale accents such as massive gourmet cheese islands, expanded organic food offerings, and outdoor cafe seating. Two new stores are under construction in Plymouth, Mass., and Rochester, N.H.
What about all that debt the nameless naysayer was worried about?
Analysts at the time predicted the debt burden would force Market Basket to either back away from its discount pricing model or curtail its unusually generous profit-sharing plan for employees.
‘Our business model is completely intact, and we’re running the shop with a lot less distractions.’
But so far, executives say, neither has happened. More than $129 million was handed out in employee bonuses and profit-sharing contributions in the past year, which is on par with prior years. And the consumer research firm Nielsen found, in a June report on supermarket pricing, that the company’s groceries were 15.9 percent cheaper than its competitors’ in the first six months of 2015. That’s nearly a full percentage point better than the same period in 2014.
“The whole fiasco last year has done nothing but increase its business,” said Kevin Griffin, publisher of the Duxbury-based Griffin Report of Food Marketing. “It increased curiosity about the company and strengthened existing customer loyalty.”
Thank you workers and Artie T for saving one of my favorite local companies, one I continue to recommend to U Chicago alum moving to the area, and whose lobsters I proudly brought back to Chicago last time I was home. The future in laws said it tasted as good as one freshly caught in the Philippines. Well done!