An unexpected grocery chain may now begin closures in Massachusetts as as several of its locations continue to shutter nationwide.
The future of the iconic Stop & Shop supermarket chain remains uncertain as its parent company, Ahold Delhaize USA, grapples with the decision to close an undisclosed number of underperforming locations.
“Stop & Shop has already evaluated its overall portfolio and will make difficult decisions to close underperforming stores to create a healthy store base for the long term,” CEO of Ahold Delhaize USA, JJ Fleeman told investors.
This move has left communities across the Northeast in a state of uncertainty, unsure whether their local Stop & Shop will be among those closed.
Headquartered in Massachusetts, Stop & Shop boasts a rich history dating back to 1914 and currently operates around 400 stores across five states.
However, the company’s recent announcement of “difficult decisions to close select underperforming store locations” has cast a shadow over the beloved grocery chain’s future.
While the exact number of closures and their locations remain undisclosed, concerns are mounting that the poorest communities could bear the brunt of these cutbacks.
Joshua Goldberg, part of the family that founded Stop & Shop, believes that the chain’s traditional strength in neighborhoods where customers were less price-sensitive may now work against it.
“Stop & Shop always did better in neighborhoods where customers cared less about whether a quart of milk cost $3 or $3.28,” Goldberg said, despite no longer being involved in the business.
Burt Flickinger, a grocery consultant at Strategic Resource Group, estimates that shoppers typically pay between 12% and 14% more at Stop & Shop compared to its competitors.
Flickinger agrees that the chain is likely considering closing 20 to 35 stores initially, but the number could potentially reach 50 locations.
As Stop & Shop’s home state, Massachusetts currently hosts the highest concentration of stores with 125 locations.
However, this number may dwindle as the company seeks to streamline its operations and focus on its most profitable outposts.
“We’ve completed more than 190 remodels to date, which continue to perform well,” Stop & Shop told Fast Company.
“We’re committed to continuing to invest in our stores — as well as in our prices — to deliver a great in-store experience and great values for our customers.”
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
Also Read: Retirees Will Now Receive More Money For Social Security
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