July 2014 – The Newburyport Blog

Market Basket’s CEOs Scare Tactics and a Misleading and Manipulative PR Statement

Customers grocery slips from other stores on Market Basket's door — Customers grocery slips from other stores on Market Basket’s door and a poster of Arthur T

Late yesterday afternoon, Market Basket’s new CEOs released a PR statement that got a lot of attention all over the world (I’m not kidding). The headline in today’s Daily Mail, UK, “Grocery chain threatens to sack ALL its workers unless they return to work from mass protests to save “It’s a Wonderful Life CEO who lost control of the company.” The article can be read here.

The CEOs’ statement “We want Market Basket associates back to work…” And it states that they are going to hold a job fair to replace workers starting Monday August 4–August 6th. The whole statement can be read here.

The manipulative implication of the PR statement is that no one is working at the Market Basket stores. And it wasn’t only the UK’s Daily Mail that came to that conclusion, papers all over the country and the world came to the same conclusion as well (the PR statement exploded on Twitter and Facebook yesterday afternoon and evening).

My take, the PR statement was designed to cause panic, fear, anger–anger at the Market Basket employees, and to make folks think that the employees aren’t working, when they are.

It could also be a PR ploy to get the word out, that the stores are actually running (although devoid of, as of yesterday, dairy, produce and meat). A test to see if customers actually return.

I only know about our Market Basket in Newburyport. ALL of the employees are working (some of their hours have been cut back). The employees are protesting on their days off and on their breaks. No trucks from the warehouse have been refused. Many Market Basket managers and assistant managers have signed a petition promising to resign unless Arthur T. Demoulas is reinstated as their boss. BUT, they have not resigned because, the Board of Directors (at least as I write this) has not announced any decision, so they are very much on the job.

How do I know this, I’ve gone over to Newburyport’s Market Basket any number of times to see what is going on for myself.

These folks, the new CEOs, are playing real mean, manipulative hardball. And as of last night it has become not only a local and national story, but an international mega story as well.

The “David vs. Goliath story, a ‘Tale of Two Arthurs’ and even the ‘ultimate Greek tragedy,” To quote the UK’s Daily Mail, has now captured the imagination of the world.

A PR set-up by the CEOs, and may it backfire big time.

The anger that I feel is towards the existing Board of Directors and new the CEOs that they hired.

Market Basket Update, Continuing PR Disaster, and Real Time Info from Twitter and Facebook

Outside-Market-Basket — Outside Newburyport’s Market Basket

On this gorgeous summer day, in the middle of Newburyport’s Yankee Homecoming, what am I doing? I’m tracking Twitter for the latest updates on the Market Basket Story, going up to Market Basket, not for groceries, but to find out what’s going on and taking photos.

And what one of the things that is so fascinating to me, is that this Market Basket story is unfolding in real time on Twitter and Facebook. And many of the sources that I now have, are the same one’s that the news media has. I’m hooked.

Aisles-empty-of-customers — Aisles are empty of customers at noon.

So this is what I’ve picked up: Arthur T’s original bid was turned down by the Market Basket’s Board of Director’s (unconfirmed), and then there were 4 other bids that were withdrawn after all the chaos started (unconfirmed), for chaos, see previous posts. That’s all in all likelihood, probably right, but, again, “unconfirmed.”

No-produce — No produce at Market Basket

What is confirmed is that a major player in the family, Rafaela Evans Demoulas, Arthus S’s sister-in-law, arrived back in Boston yesterday. What is also reported, as I write, on Twitter, and on Save Market Basket’s Facebook page, is that Arthur T’s offer is now the only one on the table, and that both sides are working, “around the clock to hammer out a deal; #MarketBasket losing millions of dollars a day amid turmoil.” (From a Boston Globe tweet that can be read here ).

No-lines-at-checkout — No checkout lines at Market Basket at lunch time.

And at our very own local Newburyport Market Basket, people are out protesting in force on Storey Ave. The door to Market Basket is littered with receipts from other stores put up by customers. Inside, the store is virtually empty of customers. No produce has been delivered to the store since last Tuesday. There has been no delivery of any dairy products except ice-cream. And as you can see from the photos, although there are other things on the shelves, the customers, by and large, have seemed to boycotted Market Basket in favor of other stores. And there are no baked goods, but on the wall behind the empty display cases, there is a picture of Artie T and a sign that says “Artie T We Support You,” (press photo to enlarge).

Bakery-and-sign — The bakery, empty, with a picture of Artie T and a sign that says “Artie T. We Support You.” (Press image to enlarge.)

Yes, You Can Buy Food in Newburyport, and Market Basket’s Continued PR Disaster

Market Basket, Newburyport — Still Protesting for Market Basket on Storey Ave in Newburyport

I went to Shaw’s this morning bright and early, 8:45, and it was packed and the shelves were stocked and being continuously restocked.

What I sensed among shoppers, many clearly were Market Basket shoppers, was a sense of bewilderment and a sense of panic, “Will I be able to get groceries,” Will I be able to afford groceries,” “Are the groceries here any good.”

The answer is “Yes,” you will be able to get groceries, do not panic, and Shaw’s grocery store, from my conversation with various folks, is doing its best to welcome customers, be unbelievably gracious to customers, welcome back customers, and to do everything they can to take advantage of the opportunity that has now been given them. I was very impressed. Shaw’s hasn’t been this hop’n in a very, very long time.

Arthur S. Demoulas Interview with Boston's Channel 7 — Arthur S. Demoulas Interview with Boston’s Channel 7

Market Basket, Board of Directors, this is a very bad thing for you.

And I went over to Market Basket, to put up my Shaw’s grocery receipt up on the window, which was now crowded with receipts from other grocery stores, and the parking lot was empty.

The one shopper that I saw starting to go in, turned around and left.

Wow!!

And Market Basket employees were out on Storey Ave protesting again with signs and had signs just outside the door and the petition to sign, having had a rally for Arthur T. Demoulas yesterday, with an estimated 10,000 people (the story can be read here.)

And yesterday I watched Boston’s Channel 7, WHDH, trying to get a response from President, Arthur S. Demoulas before yesterday’s board meeting.

I was, excuse me, appalled by his behavior when asked about his customers and loyal employees, to me the arrogance and contempt he displayed was astounding (you can watch that exchange here).

To me this is a continuing PR nightmare for Market Basket, Arthur S. Demoulas, the current management, and the Board of Directors. Wow!! And the emotional and psychological stress that it is putting on the community is palpable.

Market Basket/Demoulas Dysfunctional Family Threatens Jobs, Economy, Food in New England

I went foraging for food today. I went to Shaw’s. On my way past Market Basket there were employees that I’ve known for a long time out on Storey Avenue protesting with signs. And I honked like mad in support.

I talked to one of the employees at Shaws. The grocery store is scrambling to keep up with demand, and the gentleman thanked me for being patient and supportive of their effort to get food on the shelves for the folks in Newburyport. He also said that he fully supported the workers at Market Basket, and I quote:

“Once it’s no longer in the family and it becomes public, it’s all over.”

(And I remember Shaw’s when it went public. The prices there are now a whole lot higher than at Market Basket. And as I remember it, it didn’t used to be that way.)

Then I went over to Market Basket and took photos of the people protesting. Their spirits seemed to be much better today than they were yesterday. I think they really appreciate the local support, and the larger support for their effort.

I put my Shaw’s grocery slip in the window at Market Basket, I hope other folks do the same.

And one of my favorite photos is of a really sweet young lady holding a sign inside Market Basket, next to the photo or Arthur T, that says, “More for your ~~dollar~~ Family.”

For an explanation of what’s going on, my favorite is still Buzzfeed, “Mind-Blowing Pictures of Empty Shelves As Employees Protest Corporate Greed,” which can be read here. Yesterday’s post on the Newburyport Blog about Market Basket, “Newburyport, Market Basket, a PR Disaster,”can be read here.

Newburyport, Market Basket, a PR Disaster

Today, walking into Market Basket, one of Newburyport’s grocery stores , the one that I have shopped at for decades, it felt as if there had been a local disaster, and the employees were required to do their best, stocking what they could in a very spooky feeling store.

empty-store — Not many people in Newburyport’s Market Basket, or check-out line.

I walked around, took photos, and asked how the folks who worked there were doing. Some said that they were holding up Ok, some said that they were really scared.

no produce Market Basket — No produce on Newburyport’s Market Basket’s shelves.

Buzzfeed has an article, “Mind-Blowing Pictures of Empty Shelves As Employees Protest Corporate Greed,” which explains what is going on, better than I can. I’ll quote from that article, which can be read in its entirety here.

Newburyport's Market Basket-empty shelves — Empty Shelves at Newburyport’s Market Basket

“Deliveries from Market Basket’s warehouses were halted on Friday, July 18th as warehouse workers walked out to protest the firing of three top level executives in the company…

Market Basket, a family-owned company founded on principles of quality, low prices, and excellent customer service, fell victim to a long-running family feud last year which resulted in board room shake-ups and the ouster of beloved CEO Arthur T. Demoulas…. He is famous for his hands-on approach to management and frequently visited the chain’s 70+ stores, chatting with managers, associates, and customers…

After the new management team refused to address concerns regarding Artie T’s removal, associates, vendors, customers, and even Massachusetts lawmakers banded together to send the board and the new CEOs a strong message about loyalty to their Market Basket “family” through boycotts, rallies, and petitions…

Stores remain open and fully staffed, but with no deliveries everything from produce and meat to plastic shopping bags is in short supply…

On July 20th, at least eight more high-level associates from the corporate office were fired via a letter delivered to them by courier. The eight highly respected associates lost had a combined 280 years of experience with the company….

Associates maintain that they are fighting not just for themselves and their co-workers, but for customers as well, many of whom have fixed or low incomes and rely on Market Basket’s low prices…”

Market Basket, Newburyport, empty parking lot — Pretty empty parking lot at Market Basket

The complete story on Buzzfeed can be read here.