Bashas’ holding its ground in grocery market vs Wal-Mart

[Omaha Steve]

http://www.eastvalleytribune.com/story/139257

Ed Taylor, Tribune

May 16, 2009 - 2:57PM


ANTI-UNION: Bashas’ employees rally May 1 in downtown Phoenix during an anti-union protest in front of the local headquarters of the UFCW to protest the union’s efforts to organize the workers.

Bashas’ would appear to be a company in serious trouble, to judge from the headlines. In late April, the Chandler-based grocery chain said tough economic conditions would force the closing of a “handful” of underperforming stores, adding to five stores that have already been closed this year.

In addition to the weakened economy, family-owned Bashas’ Supermarkets is coping with a surge of Wal-Mart Supercenters, which predictably have grabbed market share at the expense of incumbent grocers.

And the Chandler-based firm is waging a bruising fight with the United Food and Commercial Workers union, which wants to organize more Bashas’ employees. The union drive has generated negative publicity about the company that may have weakened the desire of some consumers to shop with the local firm.

“There is no question these are difficult times, as difficult as any we’ve seen in the history of the company,” said Senior Vice President Edward “Trey” Basha III, son of Chairman Eddie Basha Jr. and one of six Basha family members active in management.

Despite those woes, the 77-year-old company, which employs 14,000 people operating about 150 stores under the Bashas’, AJ’s, Food City and other brands, has been holding its own.

According to Nielsen Co., the Chandler company’s share of the Valley market has only dropped from 16.8 percent in the fourth quarter of 2002 to 15.2 percent in the fourth quarter of 2008, the latest figure available.

FULL story at link.