{"id":4913,"date":"2025-10-08T12:53:23","date_gmt":"2025-10-08T16:53:23","guid":{"rendered":"https:\/\/damore-mckim.northeastern.edu\/cem\/news\/market-baskets-family-feud-what-customer-loyalty-teaches-us-about-business-politics\/"},"modified":"2026-09-04T12:23:03","modified_gmt":"2026-09-04T16:23:03","slug":"market-baskets-family-feud-what-customer-loyalty-teaches-us-about-business-politics","status":"publish","type":"post","link":"https:\/\/damore-mckim.northeastern.edu\/cem\/news\/market-baskets-family-feud-what-customer-loyalty-teaches-us-about-business-politics\/","title":{"rendered":"Market Basket's family feud: What customer loyalty teaches us about business politics"},"content":{"rendered":"\n

Few grocery chains hold the same emotional weight in New England as Market Basket. With its reputation for low prices, loyal employees, and deep community roots, the company has long stood as a model of a thriving family-run enterprise. But behind the shelves stocked with essentials lies a boardroom conflict that is testing not only the meaning of \u201cfamily business\u201d but also the patience and loyalty of its customers. <\/p>\n\n\n\n

To better understand the unfolding turmoil, we spoke with Kimberly Eddleston<\/a>, Schulze Distinguished Professor of Entrepreneurship and Professor of Entrepreneurship & Innovation at the D'Amore-McKim School of Business. Eddleston explained that the latest dispute reflects a clash between active and passive family shareholders. While longtime CEO Arthur T. Demoulas, fondly known as \u201cArtie\u201d, earned trust by prioritizing employees, customers, and suppliers through a stakeholder-first approach, his sisters, who are passive shareholders (not involved in daily operations), have recently pushed for greater control. Their moves, including ousting Artie's allies from the board and even dismissing his children from leadership-track roles, have led many to question whether profits are now being placed over people, and what that means for how customers will view the business.\u00a0<\/p>\n\n\n\n

\u201cThis is supposed to be a family,\u201d Eddleston notes, \u201cbut right now it feels like an us versus them<\/em> mentality.\u201d Eddleston compares the situation to HBO's Succession<\/em>, where heirs with little operational experience attempt to claim leadership. Without structures like a family council or clear succession planning, Eddleston explains, conflicts can quickly escalate into public crises. <\/p>\n\n\n

\"\"
02\/28\/24 – BOSTON, MA. – Kimberly Ann Eddleston, the Schulze Distinguished Professor of Entrepreneurship, and professor of entrepreneurship & innovation at the D'Amore-McKim School of Business, poses for a portrait on Wednesday, Feb. 28, 2024.Photo by Alyssa Stone\/Northeastern University<\/figcaption><\/figure>\n\n\n\n

Flashback: 2014 Boycotts<\/strong> <\/p>\n\n\n\n

    \n
  • When Artie was first ousted in 2014, the response was unprecedented. Employees, customers, and suppliers united in boycotts and protests, demanding his return. <\/li>\n\n\n\n
  • Their activism drew national headlines and ultimately forced the board to reinstate him. <\/li>\n\n\n\n
  • In 2024, despite similar tensions, customer response has been more fragmented. Some individuals have chosen to avoid Market Basket, but the sweeping collective action of 2014 has not repeated. <\/li>\n<\/ul>\n\n\n\n

    The contrast highlights a powerful truth: customers don't just buy groceries at Market Basket; they buy into its values<\/em>. In 2014, loyalty turned into activism, proving that consumers can influence boardroom decisions. Today, that same loyalty may be tested as customers weigh their commitment against leadership decisions that appear to put profits over people. <\/p>\n\n\n\n

    For business students, Market Basket's story is a real-world case study in how culture and governance shape consumer trust. The chain thrived not just because of its low prices, but because employees felt invested, with many delivery drivers retiring as millionaires thanks to generous retirement plans. Customers, in turn, trusted that loyalty to employees translated into loyalty to them. They saw the smiling faces that fed their families and made sure they were taken care of. As Eddleston notes, \u201c[This] will hurt their brand, and they will lose that family-ness. People are so loyal to Market Basket. It's hard to just take something out and replace it.\u201d She believes that when leadership decisions appear to undermine that bond, customers are willing to push back. <\/p>\n\n\n\n

    Eddleston says the Market Basket saga underscores a broader truth: family businesses succeed when they balance profitability with trust, culture, and legacy. In fact, her research has found that consumers view family firms as more trustworthy and customer-oriented than non-family companies; a reputation that Market Basket has embodied for decades but now risks losing. <\/p>\n\n\n\n

    For residents of the New England area, the story is more than just a local drama. It's a reminder of the complexities that come with legacy ownership, succession planning, and stakeholder management. As Eddleston reflects, \u201cIt's really sad. They should have learned from the last conflict. Right now, Market Basket is still family-owned, but it's no longer family-run.\u201d <\/p>\n\n\n\n

    Customer loyalty is powerful, but it is never guaranteed. As Eddleston emphasizes, \u201cIf part of this was about profits, we'll start to see prices going up, different employee practices\u2026 and that can hurt their brand, because what made them special was how they treated people.\u201d A loyal customer base can defend a company in times of crisis, as seen in 2014, but that trust must be continually earned through transparency and ethical leadership.  <\/p>\n\n\n\n

    Culture, too, matters as much as strategy. Artie's people-first approach didn't just drive profits; it built a movement. As Eddleston says, \u201cIf I [as an owner] treat my employees well, they're going to treat my customers well, and this is going to help us grow.\u201d Market Basket's ongoing saga shows that conflicts don't stay confined to the boardroom. Customers notice, and their reactions can either elevate (or quickly erode) a brand's reputation. <\/p>\n\n\n\n

    Looking ahead, the future of Market Basket remains uncertain, but the lessons for business leaders are clear. As Eddleston highlights, \u201cRight now it's still family-owned, but it's no longer family-run. That's a big difference.\u201d For D'Amore-McKim students, it's a reminder that the bond between companies and customers is never just transactional. It is built on trust, and when that trust is shaken, even the most loyal customers can choose to step away. <\/p>\n","protected":false},"excerpt":{"rendered":"

    Market Basket's latest family feud is testing more than boardroom dynamics\u2014it's challenging the company's legacy of trust and loyalty. D'Amore-McKim professor Kimberly Eddleston says the conflict highlights how family businesses can lose their \u201cfamily-ness\u201d when profits overshadow people, reminding leaders that culture and governance are just as vital to success as strategy.<\/p>\n","protected":false},"author":110,"featured_media":4914,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"post_unlisted":false,"post_preheader":"","post_footer":"","snapshot_data":"","footnotes":"","_dmsb_faq_schema_heading_id":"","_dmsb_faq_schema_additional_items":[{"id":"additional-faq-0","question":"","answer":""}],"dmsb_screen_reader_heading":"","hide_preheader":false,"hide_excerpt":false,"hide_date":false,"hide_taxonomies":false,"dmsb_featured_image_focal_point":{"x":0.5,"y":0.5},"dmsb_distribute_to":[]},"category":[50],"tags":[],"dmsb_audience":[66,65,64],"dmsb_group":[],"class_list":["post-4913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-business","dmsb_audience-academics","dmsb_audience-practitioners","dmsb_audience-students"],"yoast_head":"\nMarket Basket's family feud: What customer loyalty teaches us about business politics - Center for Emerging Markets<\/title>\n<meta name=\"description\" content=\"Market Basket\u2019s latest family feud is testing more than boardroom dynamics\u2014it\u2019s challenging the company\u2019s legacy of trust and loyalty. 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