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 The styles of the seventies, so different from what had gone before, appeared tired, grungy and long out-of-date by 1982 or so.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.

Winn-Dixie's Family Tree

The roots of Winn-Dixie’s “family tree” can be traced back to two small grocery stores in 1920’s Florida. The first of these was a wholesale grocery unit in northeast Florida, purchased by E.L. Winn and W.R. Lovett in 1920. From that humble start, Winn and Lovett built a chain of “small neighborhood-type” stores, reaching a total of 65 units by the end of 1928. On Christmas Eve of that year, the company was officially incorporated as Winn & Lovett Grocery Company. The company prospered through the depression that followed, and in the early 30’s embarked on a program to consolidate its small stores into fewer but larger units that would feature self-service, an emerging trend in the grocery industry. By the end of 1934, there were 55 stores located in central and northeast Florida and in south Georgia, under the Lovett’s and Piggly Wiggly names. By this time, W.R. Lovett had bought out Mr. Winn’s interest in the company.

The second of these two “founding stores” was opened in 1925 in Lemon City, a suburb of Miami by William M. Davis. Davis had operated a general store in Idaho in the years prior to World War I, and had recently relocated his family to Florida. Known initially as “Rockmoor Grocery, Inc.”, the company that eventually resulted was called Economy Wholesale Grocery Company. From 1927 on, the stores themselves went by the name of Table Supply. By 1934, there were 34 Table Supply stores in south and central Florida. The company had moved into the Tampa area three years prior with its purchase of the Lively Stores chain. That same year, the elder Davis passed away, and control of the company passed to his four sons – Artemus Darius (A.D.), James Elsworth (J.E.), M. Austin and Tine W. - “The Davis Brothers” would become a fairly well-known group in Wall Street circles in decades to come.

In November 1939, W.R. Lovett sold his interest in Winn & Lovett (a chain that had by now grown to 73 stores) to the Davis Brothers. Lovett stayed on in an advisory role as chairman, and A.D. Davis took over as president. For a five-year period, and despite the same ownership, the Winn & Lovett and Economy/Table Supply firms were run as separate companies. Davis’ three brothers, J.E, Austin and Tine continued to run the family’s original business during this time. On November 25, 1944, the two companies were combined into one entity under the Winn & Lovett corporate name. There were 118 total stores, half of which the company described as “supermarkets”. The retail stores themselves continued to operate under their existing names – Table Supply, Lovett’s and Piggly Wiggly. There were also a handful of Economy Wholesale Grocery stores.

(It’s interesting to note some of the major grocery chains that once operated Piggly Wiggly-bannered stores in addition to their traditional nameplates. Besides the Winn & Lovett-owned “Pigglys”, Kroger operated a number of them in Atlanta, and H.E. Butt (H.E.B.) had many in Texas in those years.)

Over the following decade, Winn & Lovett grew rapidly through acquisition, adding a number of new chains and territories. In July 1945, the company took a major step outside of its traditional Florida/south Georgia market area with the purchase of Louisville-based Steiden Stores, Inc., a 31-store chain. In late 1949, the Margaret Ann grocery chain, with 46 stores conveniently located within the company’s core Tampa and Miami areas, was acquired.

In 1952, Winn & Lovett achieved the special distinction of being the first Florida-based company to be listed on the New York Stock Exchange. Of lesser note but still important was the company’s growing stable of private labels, with the purchase of the former B. Fischer manufacturing plant in New York, makers of Astor coffee, tea and spices, a longtime Winn & Lovett supplier. The company already had bread bakeries in Jacksonville and Miami and a salad dressing/mayonnaise/peanut butter plant in southern Alabama. In April 1955, Winn & Lovett purchased the Carr-Consolidated Biscuit Company, makers of Crackin’ Good cookies and crackers. Unfortunately, Carr’s Chicago plant burned down a mere four months later. A replacement Crackin’ Good plant was opened much closer to home in Valdosta, Georgia in 1958.

The company rapidly moved into adjoining markets, including Albany, Valdosta and Savannah, Georgia and Dothan, Alabama in 1953. The following year, Montgomery, Selma and Anniston, Alabama and Columbus, Georgia were added as well.

And of course there were more store chain acquisitions, including the Kwik Chek Supermarkets of the Tampa and Miami areas. I have to admit that this one puzzles me, as a number of web sources mention Kwik Chek as a company acquired sometime in the early/mid 50’s. The first mention of it in a Winn & Lovett annual report came in 1953, when the name Kwik Chek appears alongside the other familiar banners – Lovett’s, Margaret Ann, Table Supply, etc., but no merger or acquisition is mentioned in that or any subsequent editions. A search in the New York Times and Wall Street Journal historical archives, usually excellent sources for “fact-cheking” (sorry) the dates of even small corporate acquisitions, yielded nothing.

Kwik Chek is significant in that it provided the company an enduring brand icon, the famous “Chek mark”. In the late fifties, the company would phase out all but the “Winn-Dixie” and “Kwik Chek” banners, with the Chek mark prominently featured (encircled) in the center of both names. When they further narrowed it down to simply “Winn-Dixie” in the 1970’s, the Chek mark still reigned as the company’s logo, as it does to this day.

In mid-1955, Winn & Lovett bought out Columbia, South Carolina based Edens Food Stores, Inc., with 33 stores in the central and western portions of the state. The “Dixie” portion of Winn-Dixie came later that year when the company purchased Dixie-Home Stores, a 117-store chain based in Greenville, South Carolina, giving the company nearly 400 stores at the close of 1955. Still more acquisitions were just around the corner. On November 15, the company’s name was officially changed to Winn-Dixie Stores, Inc.

The next ten years would be "crackin’ good" for Winn-Dixie, by all measures.

The photos above are shown in a reverse chronology (more or less) of the store nameplates that would come to make up Winn-Dixie. The Dixie-Home photo (with its Food Fair-esque pylon) is from Chain Store Age, the Kwik Chek photos are shown courtesy of the Tampa-Hillsborough County Library System and the rest are vintage Winn & Lovett publicity photos. Below, from the Florida Photographic Collection, is an interior scene from the Davis family’s first Miami grocery store, circa 1925.