Supermarket chain sparks fears of mass closures as ‘difficult’ decisions hinted at by bosses
Stop & Shop plans to close “underperforming” stores in the coming years.
The Massachusetts-based company has nearly 400 stores in five states, including New York, New Jersey, Connecticut and Rhode Island.
The store closures were announced during the parent company Ahold Delhaize’s ‘Strategy Day’ last week, where a four-year plan for its brands was outlined.
βStop & Shop has already evaluated its entire portfolio and will make difficult decisions to close underperforming stores to create a healthy long-term store base and grow the brand,β said JJ Fleeman, CEO of Ahold Delhaize.
He said that despite strong on-site competition, the retailer has strong market share and has seen its rewards program and online sales grow.
Stop & Shop, which has 400 stores in the Northeast, will close “underperforming” stores
But he added: “That’s not enough and it’s not where we want or need to be.”
It has “revamped” 190 stores and plans to spend $1 billion on more improvements and price cuts to attract shoppers.
Stop & Shop stores are about 55,000 to 75,000 square feet β the standard size for a U.S. supermarket.
That’s larger than a Walmart Neighborhood Market of about 40,000 square feet, but dwarfed by a Walmart Supercenter of 180,000 square feet.
When asked which stores will be closed, Stop & Shop declined to provide details. “It is too early in the process to share additional information regarding potential store closures,” the company said in response to an inquiry from WBZ TV.
Looking ahead, Fleeman also spoke about the ‘next phase’ for Stop & Shop.
It included ‘a focus on quality, fresh produce, well-stocked shelves, further supply chain efficiencies and fantastic service in each of the stores.’
Meanwhile, other major retailers are introducing summer grocery deals to help consumers hit by inflation.
Walmart, Aldi, Target and Amazon Fresh have announced price cuts on thousands of food and grocery items.
Stop & Shop’s planned closures come amid a widespread “retail apocalypse,” with brick-and-mortar stores struggling to combat rampant theft and increasingly tight margins.
By the end of April, US retailers had announced the closure of nearly 2,600 stores by 2024 β just four months into the year.
Walmart, which has closed eight by 2024.
Earlier in April, dollar store 99 Cents Only said it would close ALL 371 stores, while Best Buy closed 10. in March.
Stop & Shop declined to provide details on which of its 400 stores will close
Money tree close the 1,000, Macy’s 150 – a third of the total – and drugstore Ritual aid 77.
In recent months there has been a wave of bankruptcies and store closures.
National coffee and luxury supermarket chain Foxtrot also said in early April that it will close all its stores with immediate effect, leaving staff and customers stunned.
Express, a major part of the mall, filed for bankruptcy in April and said it would close 95 Express stores in addition to all of its UpWest stores.
In early May, Rue21 β the teen fashion chain that is a fixture in malls across America β also said it will close all of its 543 U.S. stores.