There are those who believe, especially outside of Winn-Dixie's headquarters in Jacksonville, Florida, that the grocery chain cannot continue to take competition such as Publix and Wal-Mart Stores head-on and survive.
Time will tell if the naysayers are right. In the meantime, an article in Florida Trend ponders what entity might be willing to come in and buy up Winn-Dixie with its 520 stores in Alabama, Florida, Georgia, Louisiana and Mississippi.
Peter Lynch, president and CEO of Winn-Dixie, told the magazine, "My focus here at Winn-Dixie is making a better company." Making Winn-Dixie better includes a capital expenditure program that is funding a remodel of every one of the chain's stores.
"I think that Winn-Dixie - and Sweetbay is another - have a challenge," Barton Weitz, professor and executive director of the Miller Center for Retailing Education and Research at the University of Florida College of Business, told Florida Trend. "I think the two big players are Wal-Mart Supercenters and Publix, which has a great reputation. It's hard for a supermarket chain to fall somewhere between these two."
Mr. Lynch isn't ready to concede the need to sell. He points to the recent closing of some Sweetbay stores along with Bruno's recent bankruptcy filing as bringing more shoppers to Winn-Dixie. He also contends the chain picked up shoppers disaffected by Publix's acquisition of a large number of Albertsons in the Florida.
Discussion Question: Is Winn-Dixie making the right moves to fix its reputation and establish itself to compete for the long haul? Do you think the chain is a likely takeover prospect? What companies would benefit most from acquiring Winn-Dixie?