Large supermarket chain faces massive boycott
The grocery giant might see history repeating itself.
Change is hard, and many people just don’t like it.
As we grow older, it’s kind of harder to break our habits. And that makes sense, because our habits have been with us for the long haul, wiring us in a certain way.
When it comes to changes in a workplace, that’s when things become even more difficult. About 37% of employees resist organizational change management, according to Oak Engage’s 20223 Change Report.
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Reasons include a lack of trust in leadership, lack of awareness around the reason for change, and fear of the unknown.
When popular food and beverage brands make sudden changes, it can be fatal for the name. It’s the same for large corporate retail chains, which are known to experience massive boycotts, either by customers or employees.
Recently, several retail giants faced large protests.
Walmart experienced a nationwide customer boycott, organized by The People's Union USA, over the retailer’s alleged contribution to economic corruption. Then customers boycotted Target and Dollar General over DEI (diversity, equity, and inclusion) rollbacks.
Now, one more supermarket chain with 95 locations seems to be joining this trend. Image source: Shutterstock
Market Basket’s long history of family feud and leadership controversy
Market Basket is a popular, old-school store with a loyal customer base attracted to low prices, a diverse selection of products, and a unique shopping experience. There are no self-checkouts here, on purpose.
The company prides itself on offering warm, person-to-person customer service and checkout. Its core value and motto? A well-known “more for your dollar” slogan.
However, there is another reason Market Basket is famous, and that is a history of ownership, leadership, and family feuds. Things came to a head in 2014, gaining international attention.
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In June 2014, Arthur T. Demoulas was fired as Market Basket’s CEO by his cousin, causing an employee and customer revolt to get him back. Workers were dissatisfied with the new management, so they walked out and staged a protest.
Loyal customers decided to support employees, boycotting the grocer by going to different stores and then taping their receipts from other retailers on Market Basket’s store windows.
The boycotts helped Arthur T. Demoulas reach a $1.6 billion deal to acquire the company’s shares from rival family members led by his cousin Arthur S. Demoulas. One day after the agreement, employees and customers quickly came back to the stores.
CEO on paid leave, grocer might face massive boycotts again
Last week saw another controversial management move. Market Basket’s CEO Arthur T. Demoulas was placed on paid leave on Wednesday, May 28, by the company’s board of directors.
The board launched an investigation into the CEO’s conduct to review a “credible allegation that Mr. Demoulas began to plan a disruption of the business and operation of Market Basket with a work stoppage,” reads the press release.
Demoulas' daughter, Madeline, and son, Telemachus, and several other Market Basket executives were also placed on leave.
“The Executive Committee believes that Mr. Demoulas and others have taken these steps as improper retaliation for the Board’s directives requiring the CEO to work with the Board regarding the most basic corporate oversight and to provide the Board access to key employees.”
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Demoulas' spokesperson Justine Griffin called the investigation “a farcical cover for a hostile takeover,” reported WCVB.
Griffin also stated that the company is currently operating at its peak performance. “Under Mr. Demoulas’ leadership in December of 2024, the company paid off $1.6 billion in debt that financed the purchase of the company in 2014.”
The saying is that history often repeats itself, and many are wondering if Market Basket is facing massive boycotts similar to those occurring a decade ago.
Many shoppers, disappointed with the latest management move, are indeed signaling a possible boycott, writes Grocery Dive.
A poll conducted by Boston.com reveals that out of 400 respondents, 55% plan to stop shopping at Market Basket stores while Arthur T. remains on leave.
“I would support a walkout if that’s what it takes. I will not shop at Market Basket until it’s resolved. 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. His father must be rolling in his grave. Stop this nonsense!,” one Boston.com reader wrote.
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