The trend of store closures in every corner of the country has continued, as regional supermarket chain Stop & Shop announces the closure of dozens of stores.
More Store Closures
The country has been hit by a wave of retail store closures around the country this year, from Family Dollar to Walgreens, and more. Stop & Shop is the next chain to be hit by widespread underperforming locations.
Stop & Shop
Stop & Shop is a regional chain of supermarkets scattered across the northeastern US, with more than 406 stores located across the country. It is owned by Dutch supermarket operator Ahold Delhaize.
Underperforming Stores Closing
The chain reported the underperforming stores in a news release on Friday, with its parent company revealing the 32 locations that would be closed.
Portfolio Evaluation
“Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand,” said Stop & Shop president Gordon Reid.
32 Stores to Close
Ahold Delhaize representatives confirmed that all 32 stores will close on or prior to Nov 2. The shuttered grocers are located in New Jersey, Massachusetts, New York, Connecticut, and Rhode Island.
Rising Prices, Less Spending
Much of the blame for underperformance falls on rising prices and more limited consumer spending, as Americans look to tighten their belts as inflation continues to wage war on savings accounts across the country.
Part of Restructure
The closures are also part of a broader restructuring effort across the chain, which was confirmed by Ahold in May earlier this year.
Lower Prices and Promos
Much of the announcement focused on strengthening the chain in key areas to boost performance, as well as lowering product prices and offering promotional deals where possible.
Close to Home
While recent mass store closures for discount retail stores and clothing chains like Family Dollar and Rue21 are still big news, supermarket closures hit closer to home in many communities where affordable food and fresh produce are a much higher priority.
North Montello Reacts
One community particularly affected is North Montello, a neighborhood in Brockton, Massachusetts, where many locals rely on the local Stop & Shop as their primary supermarket.
Protesting Earlier Closure
This particular Stop & Shop location was already marked for closure last year, but local leaders and residents lobbied to keep it open. They were successful then, but now their local store has been confirmed for closure in a recent announcement.
Concerning for Many
It’s a sharp blow for local shoppers, particularly disabled and elderly consumers who rely on the store for their weekly essentials and may struggle to travel further afield to the closes remaining stores.
“Very Disappointed With Stop & Shop’s Decision”
“I am very disappointed with Stop & Shop’s decision to close this location in a part of our city that desperately needs a grocery store,” said Robert F. Sullivan, the mayor of Brockton.
A Huge Impact on the Community
“We were assured just last year that this location would continue to operate. This closure will greatly impact many Brocktonians who rely on this store for food, pharmacy, and gas purchases on a daily basis,” he added.
Workers Offered New Jobs
While hundreds of employees at these 32 locations will also be affected, the company has confirmed that all workers will be offered positions elsewhere in the company.
Remodeling Efforts Continue
The portfolio restructuring will also include a sweep of remodeling of surviving stores. Stop & Shop has already remodeled more than 190 stores since 2018, according to the press release.
Linked to Higher Performance
Remodeled stores have clearly outperformed stores that have not been remodeled, so revitalizing older stores will continue to be a priority for the chain.
Still Committed to Communities
The brand has still maintained its commitment to its customers and the communities it has served since Stop & Shop first opened as a small singular grocery store back in 1892.
“Proud of Deep Roots and Community Ties”
“Stop & Shop is proud of the deep roots and community ties we have developed as a neighborhood grocer of more than 100 years, and we remain committed to nourishing our associates, customers, and communities,” Reid said.
Maintaining a Strong Presence
Reid maintains that the chain will continue to have a “strong presence” across the more than 350 stores that will remain open across the northeast.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
