A massive grocery chain with 400 stores is now closing locations after the CEO stated the company is not where it should be.
CEO of Ahold Delhaize USA, JJ Fleeman, noted that the company’s brand, Stop & Shop, was “not where we want to be or need to be,” during a recent earnings call.
Stop & Shop operates around 406 stores and has a history in the United States dating back to 1914.
It recently celebrated its centennial anniversary in 2014.
Fleeman said an unspecified number of the veteran supermarket’s locations would be axed to build a better foundation for the brand.
“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,” he told investors.
The CEO added that the closing stores’ exact number and location would be confirmed later.
A spokesperson for Stop & Shop also confirmed that the brand had finished remodeling efforts to at least 190 stores, nearly half of its portfolio.
They also assured customers that the chain wouldn’t be going anywhere but investing and restructuring to improve their shopping experience.
“We’ve completed more than 190 remodels to date, which continue to perform well,” they 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.”
Fleeman noted those investments to be better technology, including artificial intelligence and other automated processes, per a press release.
Stop & Shop’s move to cut stores and remodel others projects significant money saved through 2028.
The brand expects to be valued at around $5.5 billion by the end of the four-year period, according to the release.
It also wants products under its private label to account for more customer purchases — ideally 45% of all sales.
The updates, along with significant price changes, would put Stop & Shop in a much stronger position, according to Fleeman.
“The value proposition and pricing at Stop & Shop are simply not strong enough,” he said on the earnings call.
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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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