Stop & Shop, a well-known supermarket chain, has announced it will soon shut down several stores.
Shoppers will need to look elsewhere for their grocery needs.
Stop & Shop Plans Strategic Store Closures
Stop & Shop, under the leadership of JJ Fleeman, CEO of Ahold Delhaize USA, is set to close several underperforming locations. Fleeman conveyed during a recent earnings call that the brand has not achieved its desired or necessary position in the market.
Operating approximately 406 stores with roots going back to 1914 in the United States, Stop & Shop celebrated its centennial in 2014. To strengthen the brand's foundation, Fleeman announced that several of these long-standing locations would be closed, though he did not specify which or how many.
He explained to investors that Stop & Shop has reviewed its entire store portfolio and has decided to shutter those not performing well. This move aims to maintain a healthier store base for future success.
The specifics regarding the number and locations of the closures will be released at a later date.
A spokesperson told Fast Company that Stop & Shop has completed renovations on nearly half of its stores, totaling at least 190.
They emphasized that the chain is not disappearing but investing and restructuring to enhance the customer shopping experience.
They reassured that the remodeled stores are showing positive results and that the company remains committed to continuing investments in store improvements and pricing strategies to ensure excellent customer service and value.
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Stop & Shop Revamps Strategy Amid Cutbacks
Stop & Shop is implementing new technology investments, including artificial intelligence and other automated processes, as a recent press release outlined.
This strategic shift coincides with the company's plans to close some stores while renovating others, which is expected to result in significant savings through 2028.
The company projects that these changes will boost its valuation to approximately $5.5 billion by the end of these four years. Additionally, Stop & Shop aims to increase the sales of its private label products to make up 45% of all sales.
Despite launching a revitalization campaign in 2018 that saw renovations in nearly half of the supermarket chain's locations, Fleeman told analysts that Stop & Shop still hasn't reached its desired position and needs to redirect its efforts.
According to Fleeman, the updates and major price adjustments are set to significantly strengthen Stop & Shop's market position. During the earnings call, he mentioned that the brand's value proposition and pricing strategies have been underperforming.
The initiative seems to be a welcome change for some customers who have expressed dissatisfaction with recent decisions by the supermarket chain. Complaints have centered around removing operated checkout lines in favor of self-checkout and price increases.
On social media platforms like X, formerly Twitter, one shopper criticized the changes for reducing profitability, while others suggested that lowering prices might help resolve the issues.
Moreover, there's a broader context of customers voicing concerns over rising grocery costs at various stores.
Some Publix customers have reportedly switched to Aldi, seeking more affordable options, while Kroger has faced criticism over the pricing of its fruits and other produce as recently as February.
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