Dive Brief:
- Fox Bros. Piggly Wiggly said the husband-and-wife ownership team has transferred 100% of their ownership in seven stores to its employees via an employee stock ownership plan, according to Supermarket News.
- Pat and Lori Fox, owners of The Hartland, Wis.-based company, said the ESPO allows the employees a chance be a part of the strategic plan going forward, while sharing in the growth of the company.
- “We value our company and our people,” Lori Fox added told the publication. “And we’re proud of what we've built together. We want to pass that on and continue to provide opportunities for the people who helped us be successful.”
Dive Insight:
The Employee Ownership Foundation’s 24th Annual ESOP Economic Performance Survey revealed a majority of ESOP companies showed gains in productivity, revenue, stock value and profitability, all of which benefit employees.
Participating in an ESOP program means employees are part owners of the company and benefit financially from a job well done. In this way, there is direct incentive for employees to work hard and take pride in what they do; that is why stores may be cleaner, prices lower and customer service a bigger focus for workers. The move also makes it less likely that a company will be the target of a takeover, and keeps employees engaged and more concerned about what’s happening in their jobs.
A number of grocers have enacted an ESOP at one time or another, including Publix, Brookshire Bros., WinCo Foods and Harp’s Food Stores. According to the National Center for Employee Ownership list of the top 100 companies that are at least 50 percent owned by an ESOP, six of the top 10 employee-owned companies in the U.S. are grocery retailers or distributors, while 16 of the top 100 are grocery retailers, distributors or offer food-related products and services.