The Lifestyles of Winn-Dixie

Remember the early 1980’s? Big hair? Shoulder pads? Skinny ties? Huge eyeglass frames? New Wave music? Cellphones the size of cinderblocks (for the few who were lucky enough to own ‘em yet)? The smell of “Love’s Baby Soft” wafting through the air?

Well, the 80’s brought about changes in many aspects of American life, and after a couple of years had begun to make their mark on the lowly supermarket as well. The styles of the seventies, so different from what had gone before, appeared tired, grungy and long out-of-date by 1982 or so. When the time came to open new stores or revamp existing ones, major supermarket chains were opting for a very different look. Gone were the muted earth-tones, dark stained woods, Helvetica-lettered signs, and “any color as long as it’s brown” exteriors. In their place were neon, mirrors, high-gloss tile, light-colored woods, faux-metallic surfaces and “any color as long as it’s beige” exteriors. In short, it was a much brighter, shinier look, if not necessarily more tasteful.

Superficial though they might have appeared, these changes were emblematic of a cultural shift in society. This was the Reagan Era, a sharp contrast to the back-to-nature ethic and economy-induced austerity of the previous decade. The popular TV shows of the early and mid-80’s - Dynasty, Dallas, Falcon Crest, Hotel, Miami Vice and (in particular) Lifestyles of the Rich and Famous – provided a vehicle for the average American viewer to live the life of the wealthy, if only vicariously. Prosperity was “in”, whether one was experiencing it personally or not. Retail store designers, a group which seldom fails to notice trends, began to incorporate this into their new offerings. Whether they achieved “an optimistic look” or “an affluent look” is debatable, but one thing’s for sure – they poured on the glitz!

Winn-Dixie, whose conservative management style was mirrored by its conservative store designs, took a bold step into the new era with its first “Marketplace” store, a 45,000 square foot format grocery/drug combination store, which opened in Valdosta, Georgia in 1984. A number of 35,000 square foot (well above the Winn-Dixie average) “superstores” opened at same time. These new, larger stores were rife with innovations for Winn-Dixie, including vastly expanded deli and bakery departments, floral sections, new “World of Cheese” bars, Gourmet Cookery areas and “Fisherman’s Wharf” seafood departments. And of course, beef was still star of the show in the newly dubbed “Prestige Meats” section.

The décor of these new superstores was on a completely different plane from the standard-issue Winn-Dixie, where painted walls and simple cutout-lettered signage were most commonly seen. Compare the photos above with the 1977 interiors shown in the previous post. The contrast is striking.

Winn-Dixie’s sales and market position remained relatively strong through the 1980’s and early 90’s. The landscape was slowly but surely changing, however. Challenges would come from a number of corners, some uncomfortably close to home. In 1980, Sam Walton, founder and chairman of (then still strictly regional) Wal-Mart Stores, Inc., was invited to join the Winn-Dixie board of directors. For six years, Walton lent his considerable management wisdom to Winn-Dixie, while at the same time gaining a priceless education with respect to the grocery industry. In late 1986, Walton resigned from the Winn-Dixie board. Just over a year later, in March 1988, the first Wal-Mart Supercenter opened, with a full grocery department under roof. Unfortunately for Winn-Dixie, the launch of this new format coincided with a full court press by Wal-Mart into their home turf – the Deep South and Florida.

And the pressure was building from another direction as well. Lakeland, Florida-based Publix Super Markets, Inc., had long stood in the shadow of Winn-Dixie, at least where volume is concerned. Publix had a highly enviable reputation for service, elegant store design and a very loyal customer base. Through the two companies’ early history, however, Publix’s relative handful of stores compared to the giant Winn-Dixie allowed them to fly low on the official Beef People radar screen. Publix had a chainwide policy of Sunday closures until the early 1980’s, and had no stores at all outside of Florida until 1991. Over the years, the balance ever so gradually shifted as Publix’s growing store count inched closer. In early 1962, for example, Winn-Dixie had over 200 stores in Florida, nearly 400 outside of Florida, while Publix had 74 in Florida, zero outside. In 1972, Winn-Dixie had 197 stores in Florida, 562 outside to Publix’s 174 in Florida, still zero outside, and in 1982, Winn-Dixie had 405 in Florida, 817 outside. While Publix grabbed the Florida lead that year, all of their 438 stores remained safely within the Sunshine State borders. (Today, after the voluminous dust of the last few years has settled, Winn-Dixie has 358 stores in Florida, 162 outside. Publix has a whopping 719 in Florida, 283 outside. These are the current figures on the companies’ websites.)

By the mid-90’s, Winn-Dixie was in a dreadful situation in its key markets, competing against Wal-Mart on price and Publix on service and style. As the late New York Times writer Constance Hays put it, “In both cases, (Winn-Dixie) was struggling against nimbler, more experienced foes.” Through the 80’s and 90’s, though, the company made attempts to compete on both fronts. In 1987, Winn-Dixie resurrected the “Table Supply” name for a discount warehouse format, but it proved to be short-lived, with five of the six stores launched closing down after just two years. Years later, another warehouse discount format would be launched, SaveRite, on a much wider basis. On the other hand, through the 90’s Winn-Dixie continued to open larger, more deluxe stores, but it was a slow and expensive process. By 1990, only a third of the chain’s 1,200 stores were over 35,000 square feet, and there were still a fairly small number of the 45,000 square foot upscale Marketplace stores. Far too many of the chain’s stores were too old, too small and too dated.

The first years of the 21st century could only be described as a disaster for Winn-Dixie, with sales and profits spiraling downward. Between 1998 and 2003, the company closed more than 200 stores, and in 2003 alone, Winn-Dixie stock lost nearly half its value. That year, many of the Atlanta stores, including several of the elegant Marketplace units were converted to the SaveRite warehouse format. In February 2005, faced with the toughest challenges in the company’s proud 70-year history, Winn-Dixie filed for Chapter 11 bankruptcy. The following June, the painful details of the company’s reorganization were announced. Over 300 of the company’s 913 stores would be closed, and Winn-Dixie would exit four states altogether – Tennessee, Virginia, North and South Carolina. The latter two states in particular had contained key company markets for decades. In addition, Winn-Dixie would say goodbye to Atlanta after some 45 years.

A year later, under the guidance of new CEO Peter Lynch, a former Albertsons executive, Winn-Dixie emerged from bankruptcy. Maintaining a smaller store base of some 520 units, the company progress has been well noted by Wall Street, which by and large seems to like Winn-Dixie again. One initiative the company has undertaken is to streamline its stable of private label brands to just a few, with two primary ones – a simple “Winn-Dixie” for most items, and in a nod to company history, “Winn and Lovett” as a premium brand. Peter Lynch’s stated goal is admirably straightforward – “To make Winn-Dixie a better company.” The company’s new tagline underscores this goal – “Getting better all the time”, which for me instantly conjures up the 1967 Beatles song.

Of course, an 80’s song would fit the bill pretty well also!

Pictured above are four Winn-Dixie Marketplace interior views. Meat and seafood departments from the first store, in Valdosta, Georgia, in 1984, followed by a produce department view from 1985 and a typical “Cheese Shop” from the following year. Below are two Marketplace exteriors, from 1986 and 1993 respectively. The last view shows a friendly-looking crew from a 1986 standard (non-Marketplace) store. I find myself wishing they had added a few more departments just to see what additional uniform colors they could come up with.