The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
When Market Basket’s board ousted CEO Arthur T. Demoulas more than a decade ago, shoppers revolted and forced a sale of the company to the popular leader. This week, the board once again sidelined “Artie T,” as many refer to him — and this time seems to think things will go differently.
The 2014 ouster marked the apex of a long-simmering family feud between Demoulas and board members led by his cousin, Arthur S. Demoulas. This time around, the board said it’s placing Arthur T. Demoulas on paid leave while it looks into allegations that he was planning a work stoppage. The board claims Demoulas has been uncooperative in addressing concerns over corporate oversight measures and succession planning, and said operations will continue as usual at its 90 New England stores while it conducts an investigation.
But Market Basket’s business may be anything but usual over the coming days and weeks. On social media, in local news reports and in flash polls, shoppers have decried the board’s latest move, and many indicate they plan to boycott stores again. Boston.com ran a poll asking shoppers whether or not they plan to continue shopping at Market Basket while Arthur T. remains on leave. Out of around 400 responses collected by Thursday afternoon, more than half (55%) said they don’t plan on shopping at the stores.
“Arthur T. is the heart and soul of that company and should be treated as such. These power grabs are a disgrace to the family legacy,” one Boston.com reader wrote.
On Reddit and Facebook, meanwhile, people who said they boycotted the company more than a decade ago declared that they would do the same again, while others decried the board as greedy and said the company’s values are in jeopardy with Arthur T. Demoulas out of leadership. Demoulas himself said through a spokesperson that the investigation is a cover for a “hostile takeover” of the company, no doubt fanning the flames.
Although the board has tried to make a pointed, logical case for its decision to place Demoulas on leave, some shoppers think there is a conspiracy unfolding against the popular CEO, whom they feel embodies the low-frills, high-service approach they love about Market Basket stores. With so many people closely watching their spending, the prospect of change at a low-price grocer feels particularly alarming.
The whole saga offers a powerful reminder to the industry about just how much shoppers can love a grocer that treats them well — and how willing they might be to revolt if they don’t like what they see.
In case you missed it
Kroger e-commerce center drivers ready to strike
Drivers at the Kroger fulfillment center in Forest Park, Georgia, have voted to authorize a strike, the International Brotherhood of Teamsters said in a Wednesday announcement, noting that the workers’ decision was in “response to the company’s repeated refusal to negotiate a fair agreement.”
The workers, who joined Teamsters Local 528 last summer, are trying to negotiate their first union contract. The union claims Kroger has stalled negotiations and failed to offer a contract that meets basic standards.
Sam’s Club serves up pizza delivery
The Walmart-owned club retailer said its members are getting what they have long asked for: pizza delivery. All Sam’s Club locations will offer delivery of freshly made pizzas by the end of May, the retailer said in a press release. The pies, which sell for just under $9, are also available for Express delivery in under three hours.
“When we talk about innovation, it’s not just about what’s new — it’s about what makes life easier for our members,” Kurt Hess, group director of operations and implementation at Sam’s Club, said in the announcement. “Pizza delivery is a perfect example: it brings together value, convenience and one of our most-loved Café items in a way that fits how people shop today.”
Costco records positive sales growth
The club retailer beat Wall Street estimates, with net sales up nearly 7% in the U.S. and e-commerce sales up nearly 15% during its third quarter compared to the same period last year, the company reported Thursday. The company’s net income also recorded growth, up 13% year-over-year to $1.9 billion.
Impulse find
Krojis: TikTok’s next influencers?
Could Kroger’s animated characters, known as Kroji’s, help the grocer go viral? The grocer seems to be giving that idea a shot.
A TikTok from Kroger on May 20 shows people dressed up as Krojis inside a store. One shows off the grocer’s produce selection while the other has a cart filled with gallons of chocolate milk, accompanied by an audio clip from the 2004 film “White Chicks.”
The post has more than 47,000 likes and 774,000 views, making it one of the grocer’s most viewed TikToks in recent days (although a cheese pull video of a mozzarella stick onion ring has 991,000 views).
While this isn’t the first time Krojis have appeared in the grocer’s TikToks, their recent reappearance suggests they may be back again in the future. Whether Krojis will become endearing influencers — or a jump scare — on social media remains to be seen.
@kroger We love a woman who knows what she wants in life #kroger #chocolatemilk ♬ original sound - Netflix Philippines
