The parent company of the popular supermarket chain Stop & Shop said it will be closing "underperforming" stores over the next few years.
Ahold Delhaize, the parent company, announced the decision during a "Strategy Day" last week, where four-year plans for the company's brands were revealed.
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Stop & Shop has nearly 400 stores in the northeastern U.S. The company has not announced which stores or how many will be closing.
"It is too early in the process to share any additional information regarding potential store closures," Corporate Communications Manager for Stop & Shop Caroline Medeiros told Newsweek.
The company's U.S. CEO JJ Fleeman addressed the closures.
"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 and grow the brand," he said.
Stop & Shop has been successful in the competitive grocery industry and has grown its e-commerce and digital rewards programs, according to Fleeman.
"But that's not enough and it's not where we want to be or need to be," Fleeman said.
The company plans to implement new strategies at the remaining stores. Fleeman called it the "next phase."
"This will include more efficient organizational structure along with a focus on quality, fresh products, well-stocked shelves, further supply chain efficiency and fantastic service in each of its stores," Fleeman said.
Medeiros shared more details on what the future looks like for Stop & Shop.
"We've completed more than 190 remodels to date, which continue to perform well, and we're committed to continuing to invest in our stores - as well in our prices - to deliver a great in-store experience and great values for our customers," Medeiros said.
Ahold Delhaize is a Dutch- Belgian multinational retail and wholesale company. It acquired Stop & Shop in 1914. It also owns U.S. supermarket chains Food Lion, Giant and Hannaford and operates several chains in other nations as well.
Stop & Shop was founded in 1914 by Solomon and Jeanie Rabinowitz in Somerville, Massachusetts, originally called the Economy Grocery Stores Company. It rebranded to Stop & Shop in 1946, and by 1959, there were 100 locations.
Many retail chains have announced store closures this year as the tough economic climate has left many companies struggling to keep doors open. Walgreens, Walmart, Family Dollar, Best Buy, Party City, CVS, Foot Locker, Rue 21, Rite Aid, 99 Cents Only, Express and The Body Shop announced they will close some or all of their locations this year.
Grocery stores have received criticism for continuing to raise prices. A former U.S. labor secretary accused Walmart of "price gouging" in March, after consumer inflation went up to 3.2 percent in February.
Walmart's CEO John Furner had previously said that stubborn inflation remains a "nagging problem."
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