On May 23, the headquarters of the Stop & Shop chain supermarket in Quincy, Massachusetts, announced plans to close a number of underperforming stores, although the specific locations and quantities have yet to be determined.
During a company strategic meeting on that day, the CEO of Stop & Shop, JJ Fleeman, stated that closing these branches would help establish a more stable and streamlined operational process, enabling the company to focus on its most important markets.
“We will make tough decisions to close underperforming stores to create a long-term healthy store foundation and drive brand development,” he said. Fleeman emphasized that the company’s goal is to lower operational expenses in order to increase profits.
Fleeman mentioned that the company’s nearly 400 branches still hold a significant market share in the northeastern United States. Starting from 2018, the company has been renovating 190 of its stores to adapt to modern market demands. These renovated stores have quickly shown better performance compared to others.
Stop & Shop currently operates 125 stores in Massachusetts. The company has not yet disclosed the addresses, quantities, and timeline of the store closures. However, Fleeman stated that this action is part of the company’s four-year plan to “optimize the store portfolio,” which also includes reducing prices of products within the supermarkets.
The parent company of Stop & Shop, “Ahold Delhaize,” owns five supermarket chain brands in the northeastern United States, including Food Lion, The Giant Company, Giant, and Hannaford in addition to Stop & Shop. Fleeman mentioned that the parent company plans to invest $1 billion to restructure the stores under these five major brands.