Winn-Dixie Set to File Reorganization Plan
s scheduled to file a plan of reorganization by Thursday of this week, setting the stage for emerging from federal bankruptcy protection as early as October. Winn-Dixie, based here, has been operating under Chapter 11 for 16 months. The retailer last week said gains derived from the sale of discontinued stores and warehouses helped it post earnings of $36.5 million during the four weeks that ended May 31. Winn-Dixie posted sales of $558 million during the period, and an operating loss of $5 million.
Fresh Brands Converts Dick's to Piggly Wiggly
SHEBOYGAN, Wis. - Fresh Brands here last week converted its nine-unit Dick's Supermarkets chain to the Piggly Wiggly banner and added the value-pricing program it had launched in 2004. A "Best of Both Worlds" ad campaign is touting the changes while seeking to reinforce Dick's reputation for quality and service, Gary Suokko, vice president, retail operations, told SN. He credited the value strategy - which features everyday low pricing on about 6,000 items - with driving sales gains at Piggly Wiggly in 2005 and 2006. Fresh Brands, which was recently acquired by Certified Grocers Midwest, acquired Dick's in 2001.
King Kullen Breaks From Group in Contract Talks
BETHPAGE, N.Y. - King Kullen here was negotiating separately from Pathmark and Stop & Shop as talks for a new union contract affecting stores for all three retailers in New York continued late last week, according to United Food and Commercial Workers Local 1500. Patrick Purcell, a spokesman for Local 1500, told SN that the union and King Kullen have agreed on principle on issues of health care and pension "so we're more hopeful of a settlement with King Kullen on the basic issues of a contract," than with Stop & Shop or Pathmark. Contract talks were scheduled through Saturday when Local 1500's previous contract was to expire. Workers for all three chains have given union leaders the OK to call a strike after then. A spokeswoman for Stop & Shop, Quincy, Mass., told SN late last week that the chain was hopeful for a resolution but declined to comment on potential strike contingencies.
Union Files NLRB Complaint Against Bashas'
PHOENIX - United Food and Commercial Workers Union Local 99 here said it has filed a complaint with the National Labor Relations Board against Bashas', Chandler, Ariz., charging the 156-store chain with violating a 2004 understanding to maintain the same health benefits as two fully unionized competitors - Safeway and Kroger-owned Fry's Food Stores. The union represents Bashas' employees at nine stores that were acquired in 1993, although it has never negotiated a contract for those employees. James McLaughlin, president of Local 99, told SN Bashas' has always stuck close to the health benefits at the other chains. Since June 1, it has offered an option to employees for better health care if they are willing to pay a weekly premium. The union's complaint with the NLRB came a few weeks after Bashas' filed suit against the UFCW charging union members with impeding store business and trespassing.
Supercenters to Lead Market Share Growth
BARRINGTON, Ill. - Nontraditional grocery store formats will gain share by 2010 at the expense of traditional and convenience store formats, the consulting firm Willard Bishop. based here, predicted in a report released last week. Nontraditional formats will have 40.5% of the dollar share of grocery and consumables, from 33.4% in 2005, led by supercenter share growth, according to the Future of Food Retailing. Traditional formats will decline to 44.1% from 50.4% while convenience formats will go to 15.4% from 16.2%. The report also revised slightly its previous estimates for 2005 market share by store format.