Stop & Shop said Friday it will close 32 underperforming grocery stores in the Northeast U.S. by the end of the year.
The chain, which is owned by the Dutch supermarket company Ahold Delhaize, said it will close 10 stores in New Jersey, eight stores in Massachusetts, seven stores in New York, five stores in Connecticut and two stores in Rhode Island.
The company said employees at affected stores would be offered other jobs within the company. Asked by The Associated Press how many people are employed at the 32 stores, Stop & Shop wouldn’t say.
Stop & Shop President Gordon Reid said in a statement that the company decided to close the stores to create a “healthy base for the future growth of our brand.”
Ahold Delhaize said in May that it planned to close some Stop & Shop locations as part of a plan to strengthen the brand. The company said it wants to build new stores and remodel remaining ones, increase the number of store-brand products it offers and reduce prices.
Burt Flickinger, a longtime retail consultant and owner of Strategic Resource Group, said many of Stop & Shop’s problems were self-inflicted. The brand closed fresh meat and seafood counters in some stores, for example, which cut down on the amount customers spent in those stores.
Stop & Shop is also getting squeezed by big rivals like Walmart and Costco, and discount chains like Aldi and Lidl.
“Wherever a Target, a Walmart a Costco or a BJ’s has been built, a Stop and Shop’s in jeopardy,” Flickinger said. “While they have a plan going forward, I’m not sure the plan’s going to be fully competitive given the intensifying level of competition.”
Stop & Shop, which got its start in 1914 in Somerville, Massachusetts, operates around 400 grocery stores and has 60,000 employees.
Stop & Shop, one of the largest grocery store chains in the Northeast region, has recently announced its decision to close 32 underperforming stores in the area. This move comes as part of the company’s efforts to streamline its operations and focus on more profitable locations.
The closures will affect stores in several states, including Massachusetts, Connecticut, New York, and New Jersey. Stop & Shop has stated that the affected stores have been underperforming for some time and are no longer sustainable in the current market environment.
While the news of these closures may come as a disappointment to some customers, Stop & Shop has assured that it is working to minimize the impact on both employees and customers. The company is offering severance packages to affected employees and working to transfer them to other locations where possible.
For customers who frequent the affected stores, Stop & Shop is encouraging them to visit nearby locations or shop online for their grocery needs. The company is also offering discounts and promotions to help ease the transition for loyal customers.
In a statement, Stop & Shop emphasized that these closures are part of a larger strategy to strengthen its overall business and ensure long-term success. By focusing on more profitable locations and investing in new initiatives, the company aims to better serve its customers and remain competitive in the ever-evolving grocery industry.
Overall, while the closure of 32 stores is certainly a significant development, Stop & Shop is confident that it is a necessary step to ensure the company’s continued growth and success. Customers can expect to see improvements and new offerings at their local Stop & Shop locations as the company moves forward with its strategic plans.
