Market Basket Chain Starts Recovery from Summer Turmoil

Market Basket is expecting to recover from its summer turmoil that saw customer boycott and an employee walk out for six weeks, by looking to old and new customers.

According to reports by the store managers of the supermarket chain based in New England, new faces are being seen in the food aisles after the board of directors reached an agreement to sell the company to Arthur T. Demoulas, the company’s ousted leader.

According to Fox Business, employees are working overtime to restock the shelves. Managers are expecting the stores to have close to full stocks this weekend.

Tom Trainor, supervisor at the store said, “I would say we’re up about 80 percent.” He added that the stores would be stocked to around 90 – 95 percent by this weekend.

The walkout happened after Demoulas firing in June, and customers boycotted the stores in support of the efforts of workers to have him reinstated.

According to some analysts, the media coverage that the protests got could attract customers.

Miami Herald reports that Gary Chaison, Clark University professor of labor relations said Market Basket might not be able to draw as many new customers as it expects and could face challenges trying to win back some of the old customers that might have become used to shopping in other stores.

Chaison said, “I think they’re bouncing back remarkably quickly, in terms of getting everyone in there, generating good publicity and restocking the shelves. The question is: After a week or two weeks, will the glow be gone?”

The company management drastically reduced the part-time workers’ working hours after the sharp reduction of customers.

The US Labor Department on Friday acknowledged the effect, by reporting that food and beverage retailers in the country had lost 17,000 jobs this past August due to the “employment disruptions at a grocery store chain in New England.”

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To contact the reporter of this story; Yashu Gola at yashu@forexminute.com