The CEO of Ahold Delhaize USA, the parent company of Stop & Shop, has openly stated that the grocery chain is struggling after announcing the closure of several stores.
This well-known northeastern supermarket chain is closing unspecified stores, leaving many local communities unsure about what comes next.
Store Closures Loom Over Stop and Shop
The U.S. Sun reports that Stop and Shop is shutting down some of its 400 stores across five states, but it hasn't revealed how many.
Last month, the company stated it was forced to make "difficult decisions to close select underperforming store locations." Despite the announcement, many communities still don't know if their local Stop and Shop will be one of the stores closing.
So far, Stop and Shop has not specified which stores are at risk or the exact number of closures planned.
According to the New York Post, industry experts suggest that Stop & Shop might have to shut down over 10% of its stores in the Northeastern US as customers shy away from the 110-year-old grocery chain's high prices.
Last month, the supermarket unexpectedly announced plans to close several underperforming stores. JJ Fleeman, CEO of Ahold Delhaize USA, which owns the chain, mentioned that Stop & Shop is committed to a significant, multi-year investment to reduce prices and attract customers.
Fleeman acknowledged during an annual investor meeting that the pricing and value offered by Stop & Shop are not competitive enough.
According to some industry observers, this could lead to the closure of up to 50 stores, which would be more than 12.5% of the chain's nearly 400 locations across Massachusetts, New York, New Jersey, Connecticut, and Rhode Island.
Industry consultant Brittain Ladd, formerly with Amazon, predicts that Stop & Shop will close between 25 to 50 stores. Similarly, Burt Flickinger of the Strategic Resource Group notes that while the current review includes 20 to 35 stores, the number could rise to 50.
He pointed out that prices at Stop & Shop are typically 12% to 14% higher than at competing stores.
Also Read: Walmart Launches Advanced Tracking Technology to Monitor Shoppers' Preferences Before Purchase
Ahold Delhaize Unveils Future Growth Strategy
Stop & Shop is set to improve its organizational structure to enhance efficiency in its stores, focusing on keeping shelves well-stocked and refining its supply chain operations, per Grocery Drive.
Additionally, according to JJ Fleeman, president of Ahold Delhaize USA, the company aims to deliver exceptional service in its locations.
Fleeman also announced that Ahold Delhaize plans to invest $1 billion in strategic price reductions over the next four years at its U.S. stores, which include Food Lion, Hannaford, Giant Food, and The Giant Company.
This effort is part of a broader strategy to boost earnings through retail media ventures and expand e-commerce capabilities.
Meanwhile, Progressive Grocer revealed that Ahold Delhaize introduced its "Growing Together" strategy, outlining key growth and investment plans up to 2028 during its Strategy Day on May 23 at the company's headquarters in Zaandam, Netherlands.
Frans Muller, president and CEO of Ahold Delhaize, explained that the new strategy was developed with a multi-stakeholder approach, focusing on balancing the needs of customers, employees, and broader societal impacts.
The "Growing Together" strategy is designed to keep the company at the forefront of innovation. This includes advancements in healthy foods, omnichannel experiences, and supply chain transformation, ensuring they meet customer needs with a well-supported and forward-looking foundation.
Related Article: Retail Warning: Multiple Walmart Store Closures Signal Broader Retail Apocalypse, Experts Warn
