Stop and Shop shuts doors across United States

QUINCY: In a move aimed at bolstering overall performance, Stop and Shop disclosed the closure of multiple stores across the United States (US) as part of its strategic restructuring efforts announced on Tuesday.

The announcement was made during an investor meeting, with further details regarding the quantity and location of stores slated for closure to be disclosed at a later time.

Read more: 99 Cents Only chain store announces nationwide closure

Stop and Shop is a supermarket chain operating more than 400 stores throughout the US. It is one of Ahold Delhaize’s, a multinational retail and wholesale holding company, key brands in the US market.

Despite completing over 190 remodels that have shown promising performance, the company opted to “optimise” its store base for long-term viability.

Ahold Delhaize’s US Chief Operating Officer (CEO) JJ Fleeman stated that the closures were essential to maintain a strong store network, especially with challenges like inflation and consumers switching to online shopping.

The CEO said that his company’s new strategy focused on leveraging technology, such as apps, artificial intelligence (AI) and automation, to drive significant cost savings, projected at $5.5 billion over the next four years.

Ahold Delhaize is also planning to boost private label products, aiming for them to make up 45 per cent of total sales by 2028. Despite efforts since 2018, the CEO acknowledged Stop and Shop requires a change in direction.

Although the closure announcement raised concerns by long-term customers, a Stop and Shop spokesperson reassured that the company was dedicated to bettering customer experiences and product value through continued investments in its stores and pricing strategies.

Remodeled stores have shown promising results, reportedly outperforming their non-remodeled counterparts. As a result, the company said it is commitment to ongoing investments in both physical and digital infrastructure.

Stop and Shop stores are mostly centered around northern US, with the state of Massachusetts being a significant market with about 125 stores. Although the impact of closures on specific regions, including in Massachusetts remains unclear, the company assured stakeholders of its focus on securing a stable future.

Read more: American discount store Dollar Tree seeks hike in price – again

Several supply chain retail stores have recently closed their doors. In April, 99 Cents Only announced the closure of all 371 of its stores across the US. Meanwhile in March, Dollar Tree shut down hundreds of its Dollar stores.