Paul F. Clark, Penn State

Whole Foods workers at the Philadelphia flagship store in the city’s Art Museum area voted to unionize on Jan. 27, 2025. They are the first store in the Amazon-owned grocery chain to do so.

Paul Clark, a professor of labor and employment relations at Penn State University, talked to Kate Kilpatrick, The Conversation U.S. Philadelphia editor, about why this is happening – and why in Philly.

The Whole Foods workers in Philadelphia voted 130-100 in favor of unionizing. What do we know about their grievances?

From what I understand, these workers have felt that compensation, benefits and work conditions were not what they should be. Some are long-standing employees and say they struggle to afford their basic necessities.

Why did the union drive effort succeed now, and in Philly?

In the last five years, there has been a surge in union organizing. There are a number of reasons for this. First is the labor market. Low unemployment emboldens workers to take the risk of organizing a union. If workers feel their employer can’t replace them or that they can easily get a similar job, they are less fearful of angering the employer by trying to organize.

The second reason is that the Biden administration was a labor-friendly administration – perhaps the most in history. The U.S. president appoints a majority of members to the National Labor Relations Board, which interprets and enforces the labor law that governs organizing. Under Biden, the NLRB regularly issued decisions that provided greater protection to workers and held employers accountable when they violated workers’ rights. During Republican administrations, the board’s decisions are generally pro-business and provide less protection to workers. So workers had the wind at their back in that regard.

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Also recent polling shows that 70% of Americans approve of unions, compared with less than half of Americans just 15 years ago. The generally favorable view of unions creates a more supportive environment for organizing.

And the last factor is that Generation Z, the youngest group of workers, clearly wants more out of their work and employment than previous generations. So we see a lot of young workers across the country organizing at Starbucks, Trader Joe’s, Apple and now at Whole Foods and other stores.

Why Philadelphia? Philadelphia is a relatively strong union town. The percentage of the workforce that is represented by a union is higher in Philadelphia than in most cities and areas of the country. So when workers express interest in organizing in Philadelphia they get a lot of support. Other unions might turn out members for their rallies, pressure the company to not oppose the organizing drive and offer other aid and assistance.

The starting wage at the Philadelphia Whole Foods store is US$16 an hour. Is that considered low when the city’s minimum wage is just $7.25 an hour?

The minimum wage in Philadelphia is $7.25 because that is the federal minimum wage. States can institute a higher minimum wage if they choose to, but Pennsylvania is one of the few Northeast states that hasn’t adopted a minimum wage higher than the federal minimum. The minimum wages in New Jersey, New York and Massachusetts, for example, are $15 or above.

But the minimum wage in Pennsylvania is almost irrelevant because of today’s labor market. Unemployment is low, and many employers have to offer significantly more than the minimum wage to get workers.

And the minimum wage is supposed to be a starting wage for workers with little experience or seniority. What workers want is a living wage. According to the MIT Living Wage Calculator, a single person in Philadelphia needs to earn around $24 per hour to cover the basic costs of living. And Whole Foods is a profitable business. It’s part of Amazon, one of the most profitable, largest companies in the world. I think workers at these companies believe that they play an important role in generating those profits because of the work they do. And they think they should get a fair share of those profits.

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How might the Whole Foods workers expect the company to fight back?

When employees win an organizing election as the Whole Food workers have, they have won a battle but not the war. The purpose of forming a union is to improve wages and benefits and working conditions, and you do that by negotiating a contract with the company. That is the next step in the process. But the law only requires employers to bargain with employees – to meet at reasonable times and exchange proposals. It doesn’t compel them to agree to anything.

The typical strategy of companies that aggressively oppose their workers having a union is to drag their feet in bargaining and not sign a contract. That is technically illegal, but labor law in the U.S. is relatively weak, and with good legal advice you can drag out bargaining for a very long time.

We’ve seen this with the Starbucks campaign. The first Starbucks store unionized in 2021. Over 540 stores have organized since then. And Starbucks workers at those stores still do not have a contract.

Could the new Trump administration have any impact on how this plays out in Philly?

The fact that the Trump administration has taken over gives companies more confidence that the standard delay strategy will work.

On Jan. 28, 2025, President Donald Trump fired Jennifer Abruzzo, the general counsel of the NLRB. The general counsel is the official at the board who basically enforces the National Labor Relations Act. Abruzzo was very aggressive in holding employers accountable if they violated the act and in protecting the rights of workers who tried to organize.

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Trump’s approach to labor law in his first four years in office was at the other extreme. He appointed as general counsel Peter Robb, who was seen as far less aggressive in protecting workers’ rights and his interpretations of the law were much more pro-business.

Under the Biden administration, if a company was coming to the bargaining table month after month and not agreeing to anything, the NLRB would eventually step in and cite the employer for not bargaining in good faith. The NLRB could find the employer guilty of unfair labor practices and genuinely put pressure on it to bargain a contract.

Based on the board’s actions during the first Trump administration, the board in the next few years will be more likely to allow companies to delay and delay in reaching a contract.

What leverage do the Whole Foods employees have?

They can go on strike. But Amazon has the resources to put up with a strike at one Whole Foods store forever.

Other Whole Foods stores may be considering union drives. The more stores that organize, the more momentum the Philadelphia store will have. But for now, these workers in Philly are going to have their work cut out for them.

That said, they won’t be alone. The Whole Foods workers organized with the UFCW Local 1776, which is basically a statewide union that’s been around for decades. It has a lot of resources and experienced and knowledgeable leaders, plus the resources of the national UFCW. So it’s going to lean into this fight, and these workers will also have a lot of support from the rest of the labor community in Philadelphia.

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Earlier this month, three Congressional representatives from Pennsylvania wrote a letter to Jason Buechel, the Whole Foods CEO, and to Jeff Bezos, the Amazon founder, that expressed their concerns about efforts to suppress the union drive. Is that support typical?

It’s not unusual. But there is no legal basis for elected officials to intervene in a labor-management dispute. I’d put that under the heading of community support.

You have a lot of progressive elected officials in Philadelphia who are supportive of unions, and that’s true in Pennsylvania right up to the governor.

Paul F. Clark, Professor of Labor and Employment Relations, Penn State

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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COLUMBUS, Ohio /PRNewswire/ — Big Lots, Inc. (the “Company”) today announced that it has successfully closed its previously announced sale agreement with Gordon Brothers Retail Partners, LLC (“Gordon Brothers”) that will enable Variety Wholesalers, Inc. (“Variety Wholesalers”) to acquire between 200 and 400 Big Lots stores, which it plans to operate under the Big Lots brand, and up to two distribution centers. In addition, Variety Wholesalers may employ Big Lots associates at the acquired stores and distribution centers, as well as certain corporate associates needed to support Big Lots’ go-forward footprint.

Bruce Thorn, Big Lots’ President and Chief Executive Officer, said, “We are pleased to close this strategic transaction, which provides a framework to preserve thousands of jobs, maximize value, and maintain the Big Lots brand. We are working closely with the Gordon Brothers and Variety Wholesalers teams on this transition. We are grateful for the continued hard work and dedication of Big Lots associates across the Company.”

Kyle Shonak, Gordon Brothers’ Chief Transaction Officer, said, “We were proud to support Big Lots through the restructuring process to enable the Company’s continued operation, and look forward to working with Variety Wholesalers to support Big Lots’ go-forward footprint.”

Lisa Seigies, Variety Wholesalers’ President and CEO, said, “Variety is thrilled to officially welcome the Big Lots brand and looks forward to operating hundreds of Big Lots store locations. This strategic acquisition allows us to serve additional customers and communities. We plan to combine the best of Variety with the best of Big Lots and are excited about the possibilities ahead.”

Court filings and other information related to the proceedings, including how to file a proof of claim, are available on a separate website administrated by the Company’s claims agent, Kroll Restructuring Administration LLC, at https://cases.ra.kroll.com/biglots, by calling toll-free at (844) 217-1398 (or +1 (646) 809-2073 for calls originating outside of the U.S. or Canada), or by sending an email to [email protected].

Advisors

Davis Polk & Wardwell LLP is serving as legal counsel, Guggenheim Securities, LLC is serving as financial advisor, AlixPartners LLP is serving as restructuring advisor, and A&G Real Estate Partners is serving as real estate advisor to the Company.

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Riemer & Braunstein LLP acted as counsel and M3 Partners LP acted as financial advisor to Gordon Brothers. Gordon Brothers’ Real Estate Services team will handle real estate matters for Gordon Brothers as well as Variety Wholesalers. For real estate inquiries, please contact Gordon Brothers’ Real Estate Services team at [email protected].

Cozen O’Connor is serving as legal counsel to Variety Wholesalers.

About Big Lots, Inc. 

Big Lots is one of the nation’s largest closeout retailers focused on extreme value. The Company is dedicated to being the big difference for a better life by delivering bargains to brag about on everything for the home, including furniture, décor, pantry and more. It fulfills its mission to help customers “Live BIG and Save LOTS” with sourcing strategies to grow extreme bargains through closeouts, liquidations, overstocks, private labels, and value-engineered products. The Big Lots Foundation, together with the Company’s customers, associates, and vendors, has delivered more than $176 million of philanthropic support to critical needs in hunger, housing, healthcare, and education. For more information, to shop online, or to find a store near you, please visit biglots.com.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words “anticipate, “estimate,” “continue,” “could,” “approximate,” “expect,” “objective,” “goal,” “project,” “intend,” “plan,” “believe,” “will,” “should,” “may,” “target,” “forecast,” “guidance,” “outlook” and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management’s then-current views and assumptions regarding future events and operating performance and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect business, financial condition, results of operations or liquidity.

Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, the current economic and credit conditions, inflation, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.

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You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.

SOURCE Big Lots, Inc.

In a significant move to bolster its long-term viability, Kohl’s has announced the closure of 27 underperforming stores across the United States by April 2025. This decision comes at a time when the retail landscape is continuously evolving, and industry giants like Sears and JCPenney are stark reminders of what can happen when businesses fail to adapt.

Why the Closures Matter

As department store chains face increasing pressure from online retailers and changing consumer habits, maintaining a lean and efficient operation is crucial. Tom Kingsbury, Kohl’s outgoing CEO, emphasized the importance of making difficult choices to ensure the health and future of the business. By selectively closing stores, Kohl’s aims to avoid the pitfalls that have befallen some of its rivals in recent years.

The closures represent less than 3% of Kohl’s approximately 1,150 locations, which shows that while the company is taking action, it’s also confident in the strength of its remaining stores. Kingsbury, who is set to step down on January 15th, will be handing over the reins to Ashley Buchanan, the current CEO of Michaels, signaling a potential shift in strategy as Kohl’s forges ahead.

The List of Closures

The upcoming store closures span multiple states, with several locations concentrated in California and Illinois. Below is a detailed rundown of the locations set to close:

• Alabama: Spanish Fort – 21000 Town Center Ave.
• Arkansas: Little Rock West – 13909 Chenal Parkway
• California: Multiple locations, including San Diego, Mountain View, and Pleasanton among others.
• Colorado: Arapahoe Crossing (Aurora) – 6584 S Parker Road
• Georgia: Duluth – 2050 W Liddell Road
• Idaho: Boise – 400 N Milwaukee St.
• Illinois: Plainfield and West Dundee (Spring Hill).
• Massachusetts: Stoughton – 501 Technology Center Drive
• New Jersey: East Windsor – 72 Princeton Hightstown Road
• Ohio: Blue Ash and Cincinnati (Forest Park).
• Oregon: Portland Gateway – 10010 NE Halsey St.
• Pennsylvania: Pottstown – 351 W Schuylkill Road
• Texas: North Dallas – 18224 Preston Road
• Utah: Riverton – 13319 S 3600 W
• Virginia: Herndon and Williamsburg.

These closures reflect ongoing efforts to optimize Kohl’s portfolio, ensuring that its resources are concentrated in locations with the highest potential for growth.

The Bigger Picture

While the closures are indeed a challenge, they also present an opportunity for reinvention. As Kohl’s looks to sharpen its focus and adapt to changing consumer preferences, the company may shift resources toward strengthening its e-commerce platform, enhancing customer experience, and introducing more innovative store formats.

Kohl’s has already shown a willingness to experiment with partnerships and unique retail concepts, such as collaborations with major brands and shifts towards becoming a more experience-driven shopping environment. These closures may enable the chain to move forward with a more agile and responsive strategy.

Looking Ahead

As Kohl’s navigates this transitional period and under incoming leadership, all eyes will be on how it capitalizes on its strengths while learning from the complexities of the retail industry. The decisions made now could shape the future of the brand and its ability to thrive in a competitive marketplace.

Ultimately, consumers can expect to see a more streamlined and efficient Kohl’s that is better equipped to meet the demands of the modern shopper. As the company moves through these changes, one thing is certain: it’s committed to evolving while keeping its loyal customers at the heart of its strategy.

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Related links about Kohl’s and store closings

https://www.axios.com/2025/01/09/kohls-closing-stores-list-april-2025

https://en.wikipedia.org/wiki/Kohl%27s

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