Contact Page

Your Name (required)

Your Email (required)

Subject

Your Message

Comments

  1. Robin jarvis says:

    “The Board also noted that thanks to the associates, Market Basket continued to deliver “More for Your Dollar” to customers, and such extraordinary efforts deserved to be rewarded.”

    This is probably the first, completely true, statement the board has made. Arthur T and Bill Marsden have always acknowledged the fact the associates are the backbone of the company. I have heard them speak of this on many occasions.

    As for the “hundreds of millions of dollars spent on new stores and renovations” that, I recall is reinvesting, just as are the bonuses and profit sharing. The fact that, while building and growing, the company continues to produce a profit speaks of the exceptional job Arthur T and his executive management team are doing for us and the shareholders. Sales are up, new jobs are being created and customer loyalty abounds. That’s called great management. If the company was left to stagnate and fall behind the competition instead of leading the industry we would eventually collapse. How could educated people, as those on the board, even suggest that growth should come without expenses.

    Board members “WAKE UP!” We, the associates, may not all hold college degrees in business, but we are not blind fools either.

  2. Connie whittall says:

    It is amazing to me that the Board of Directors is still not satisfied. Market Basket moved up 5 spots in 2013 in the top 75 Retailers in the US and Canada to spot #36, on the strength of opening 4 new stores. They did this through the dedication of their employees and because they have a very loyal and happy customer base.

    Their earnings of 8.07% on $4.1 Billion is one of the highest in the food industry. Consumer Reports ranks Market Basket #7 out of 52 Nation-wide chains and yet the Board is not satisfied. They need to look at the big picture and not kill the cash cow of profit they are now enjoying. Please see below a compilation of articles from different newspapers and periodicals over the last few months all referring to the profit of Market Basket. True, all corporations should be looking to the future and continue to explore new outlets of profitability, but smearing ATD’s performance, when in fact it does not appear to be true is another story…

    Board of Directors – please remember Enron which shows us what a company and its leadership are capable of, when they are obsessed with making profits at any cost!

    July 12, 2013 – Grant Welker at the Lowell Sun – “Since Demoulas was appointed CEO in 2008, Tewksbury-based Market Basket has increased sales by one-third, added about 8,000 employees, maintained one of the highest profit margins in the business, and won acclaim from industry analysts, according to the company.”

    July 18, 2013, Galen Moore, Boston Business Journal – “Managers have opened the books of the privately held, family-owned company. Market Basket’s 2012 revenue was $4.01 billion. In 2007, the year before CEO Arthur T. DeMoulas took over, it was $2.48 billion. In that time, the chain has opened 12 new stores, all of which it has financed out of its own pocket, fueled by an impressive 8.07 percent EBITDA margin (2012), according to the executive. In many cases, Market Basket owns its own store properties – which means investment in a new store can range up to $40 million or $50 million. “They’re a wildly profitable company for the industry,” supermarket industry analyst Kevin Griffin (The Griffin Report of Food Marketing) told me. They have no debt and they’re old-fashioned old school stick to their knitting. They don’t get involved in selling anything other than grocery products.”

    July 20, 2013 – Grant Welker at the Lowell Sun – “Still, Market Basket has grown, particularly in the last year or so. The chain was the fastest-growing retailer in eastern Massachusetts based on new square-footage for the year ending April 30, according to Burlington-based real-estate company KeyPoint Partners. The company added 221,700 square feet of new space over that time. It also will soon open its first Maine store, and three others in Massachusetts are planned. The lawsuit against Market Basket said profits have “stagnated” while sales have grown “dramatically.” In an interview a week before the vote, Arthur T. Demoulas talked more about the importance of keeping employees happy and prices low. “We say we’re a people business first and a food business second,” he said. Still, Market Basket has one of the highest operating profitability margins, known as a EBITDA margin, in the industry, according to the company. In the first quarter of this year, the margin was 8.07 percent. The average for regional supermarkets, such as Harris Teeter, a Southern chain just purchased by the national grocer Kroger, is 6 percent, according to a report by Moelis & Company, an investment bank. The average margin for so-called multi-regionals, companies like Stop & Shop parent company Ahold or Kroger, is 5.4 percent, according to the bank, and the average for national grocers like CostCo, Target and Walmart is 7.3 percent.”

    7/31/13 – Kevin Griffin, The Griffin Report of Food Marketing – “The short version of the story goes like this: Arthur S. Demoulas, who holds a (less than 1 percent) controlling interest in the family-held business, was attempting to have his cousin, Arthur T. Demoulas, removed as head of the company in a board vote July 18. Arthur S. led the charge to have the business assume new debt to the tune of $1.5 Billion (that’s not a typo—it’s Billion with a capital B) so the shareholders could “recapitalize” the business and “create value” for the shareholders. In layman’s terms, Arthur S. (and his side) wanted to borrow lots and lots of money to make huge distributions to family members (shareholders), many of whom are not involved in the business. It’s in effect saddling up the donkey with too much weight for all the wrong reasons. Arthur T. Demoulas (the company’s largest shareholder) has been running the company (like a champion, in my opinion) for years now and has been delivering consistent, unprecedented growth—and stellar profit margins by any measure. I’ve had an inside peek at the numbers and believe me when I tell I tell you that most similar businesses could only dream of such success. It is astounding that the board would want to remove Arthur T. from a job that he does so well—especially considering that nobody else in the family is remotely involved or interested in running the joint.”
    August 27, 2013 – Boston Globe Editorial – “With its streamlined, low-tech operations, Market Basket earned a profit of $217 million on $4 billion in revenue last year, a respectable figure in an industry of low profit margins. But that hasn’t been enough for the Arthur S. wing of the family. However the family dispute is resolved, New England shoppers and workers each have a vested interest in the continuation of the policies of Arthur T.; that’s why the decision to disperse another $250 million to family members is so disappointing. It suggests that greed will drive the next chapter of the Market Basket story, no matter who’s in charge. And both the company and the communities it serves will be worse for it.”

  3. Pat hamilton says:

    Dear fellow associates,
    My name is Pat Hamilton and I’ve worked for Market Basket for 3 years, and have been a full timer in produce for 3 months. I am only 19 years old, and I would like to offer a younger persons perspective. I just graduated high school at a time where finding a good job is extremely difficult, and finding any form of insurance for a reasonable rate is impossible.
    Going to college is pushed upon us, but with that comes thousands of dollars of debt. Before my senior year I was approached about going full time after high school. Unlike all of my friends, I had a way out. An escape from the 40,000 debts, and the unaffordable health insurance.
    I haven’t worked for this company for long, but I have worked hard for the last few years because ATD has provided me with a future less questionable than that of my high school peers.
    When I first heard word through the grapevine of ASD’s attempted takeover, I became scared. I worked 32 hours a week through school, getting poor grades and barely passing because I knew that if I focused on mb, ATD would reward me for my work through generous bonus’ and great benefits. I had no fallback plan. I have no profit sharing to cash in on, and live off of.
    I don’t just appreciate ATD as my CEO, I need him as my CEO. He has provided my life security for many years to come, and I will do my part to do the same him by fighting for his job, and the values he promotes.
    People with 15 times the experience I have have welcomed me into their family, and I am incredibly thankful for that. Every part timer up to Mr.D is now my family, and I believe that if we stick together, nothing will beak us.

    • elizabeth bates says:

      Pat …. Nice posting and I like your perspective! Together we all stand together, strong with ATD, his management team, customers, vendors, and each and every other associate. We are MB, and that is that! Good luck in your new full time position! Sincerely Elizabeth Bates store 49 Rowley Deli dept

  4. John Gordon says:

    I have been with Market Basket for 41 years, 21 of those years as a Store Director. Market Basket has always provided me with a successful and fulfilling career. ATD has always provided strong leadership and a work ethic to be admired. Market Basket is not your average company and ATD is not your average CEO.

    Ask any manager, office personnel or customer about him. They will all tell you the same thing. A visit from ATD at the Tewksbury 8 store would last upwards of 2 hours. The first hour of which he would talk with customers who knew him. He always left with a firm handshake and a look in you eye and tell you “if you need anything call me”. It was clear he meant it. Not your average CEO.

    The turnout alone at the July 18 Board of Director’s meeting in support of ATD should tell you Artie is truly someone amazing who is loved, appreciated and admired by all Market Basket associates. It was over 15 hours in 90+ degree weather. You saw us when you came in and you saw us when you left. Not your average company and not your average CEO.

    The sudden shift in Board power has put ATD’s leadership in jeopardy. It is through ATD’s leadership and direction that Market Basket is not your average company. It is through ATD’s leadership and direction that Market Basket will continue to grow debt free with loyal customers and even more loyal associates. Market Basket is not your average company. ATD is not your average CEO.

    I would ask the Board of Directors to step back and take a look at our business model and philosophies under the leadership of ATD. It is a model that should be industry standard. I ask the Board to allow the greatest CEO in the industry to continue to do what he does best… RUN THIS COMPANY.

    John Gordon
    Store Director
    41 years

    • cindy whelan says:

      John, I mean, Mr. Gordon, you are one of the people who made me who I am today. No… do not apologize.. LOL… but when I went full-time, it was you and Barry Bovin that made me the “finicky” person I am today. It is just a testament to how we “manage” this great company. True leaders, create true results. So I thank you, Barry, along with Mr. Clancy, may he rest in peace, and many others for creating the die hard MB associate I have become. I have no regrets, and I will fight until I have no fight left. Fight is what I have to give, and I have never run out of it.. Keep the faith!

  5. Sue rostosky says:

    I posted this on the Facebook page, but thought it might be good for here too….

    This FAQ is interesting…. It asks the question “Are there plans to have the Company take on more debt?” Wait….it says MORE DEBT! Since when was there DEBT? I thought the company was DEBT FREE? Here is what their page says….

    “Are there plans to have the Company take on more debt?
    There are no current plans to take on more debt. Market Basket has adequate cash to continue to expand its operations and make capital improvements to its existing stores. The Board will continue to assess opportunities to raise debt in the capital markets as it determines what capital structure is in the best interest of the Company and shareholders.”

    ^ Top
    Am I reading this wrong?

Speak Your Mind