Albertsons-owned Kings Food Market is shutting down its Chatham, New Jersey store, leaving only 18 locations.
Vivek Sankaran, CEO of Albertsons, stated that the grocery industry faces numerous challenges.
Kings Food Market Closing Chatham Location
Upscale grocery chain Kings Food Markets, owned by Albertsons Companies, will close its Chatham store by September 1 this year.
According to Northjersey, Dana Ward, a spokesperson for the company, explained that the decision to close a store is difficult. She emphasized that the company is focused on growing its business, sometimes requiring reallocating resources to enhance current stores or open new ones.
TAPinto Morristown, a local news outlet, initially reported the closure of Kings in Chatham.
On the eve of Thanksgiving, last-minute shoppers were seen gathering ingredients at Kings Supermarket in Montclair.
According to Ward, the decision to close the store is unrelated to the ongoing $25 billion merger talks between Albertsons, based in Boise, Idaho, and supermarket giant Kroger. Albertsons has confirmed that none of the stores divested in the merger are in New Jersey.
Meanwhile, a store associate revealed to The U.S. Sun that Kings Food Markets will discontinue selected items next week. The spokesperson for the company added that employees keen on staying with the company will have opportunities to transfer to other locations.
Kings Food Markets operates 16 stores across New Jersey, with one additional store each in Connecticut and New York.
The grocery chain, known for its premium produce and correspondingly high prices, faced financial troubles, leading to a bankruptcy filing in 2020, from which it has since recovered.
Albertsons Companies, which acquired Kings after its bankruptcy, has faced several challenges in the grocery industry.
Sankaran noted in April that the sector is pressured by various factors, including investments in staff wages and benefits, significant food inflation from the previous year, reduced government assistance for customers, decreasing COVID-related revenue, and the growth of pharmacy and digital operations, which have lower profit margins.
Since Albertsons acquired Kings, which involved a $96 million investment in the New Jersey-based company, six stores have been closed as part of ongoing adjustments to the business landscape.
Kroger-Albertsons Merger Faces Legal Challenges
Albertsons announced a merger with the Ohio-based Kroger Company, but the Federal Trade Commission (FTC) sued to block it earlier this year, per Patch.
The FTC argued in February that the merger could lead to higher prices for groceries and essential household items for millions of Americans by eliminating fierce competition between Kroger and Albertsons.
Ward emphasized that the decision to close locations in Baltimore and Chatham was not connected to the proposed merger with Kroger.
There are 15 other Kings Food Markets under Albertsons in New Jersey, including stores in Boonton, Florham Park, Mendham, and Morristown. The company stated that closing a store is difficult, but their focus is on growing their business.
This growth often involves reallocating resources to enhance existing stores or to open new ones. They assured that they are committed to offering customers clean, fresh, full, and friendly shopping experiences.
Additionally, the company mentioned that employees who wish to stay with the company will have the opportunity to be reassigned to other positions at nearby stores. The Labor and Human Resources teams are actively working to assist affected employees in finding alternative employment that aligns with applicable laws or labor agreements.
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