|Winn-Dixie Loses in Dixie|
|Key Words||Unprofitable, centralizing, financial results, competition, operating margin, market share, restructuring, profitability, competitor|
Winn-Dixie, the nation's sixth largest supermarket chain, based in the southeast, is letting go 11,000 of its 132,000 workers. It is closing 114 unprofitable stores, three regional headquarters, and its soap and bag factories. In addition, it is centralizing its buying and distribution systems, and it is remodeling stores so that they are larger and have service departments. The company is also eliminating certain high-level management positions.
Winn-Dixie has experienced poor financial results in a market characterized by strong competition. Its operating margin in 1999 was only 1.47 percent, compared with 6.23 percent at Albertson's and 6.92 percent at Safeway. Its sales are down. In Florida, it has lost market share to Publix Super markets and Kash'n'Karry.
While the company hopes that restructuring will improve profitability, some observers believe that the key is to get customers back in the store. Others think that Winn-Dixie will end up being sold to a larger competitor.
(Updated June 1, 2000)
|Source||Mark Albright, "Winn-Dixie cutting 11,000 jobs," St. Petersburg Times, April 21, 2000.|
Return to the Perfect Competition Index
©1998 South-Western College Publishing. All Rights Reserved webmaster | DISCLAIMER