The struggling supermarket chain Stop & Shop, owned by Ahold Delhaize, is evaluating the performance of its stores in Connecticut and may close underperforming locations. The decision will be influenced by the success of recently remodeled stores.
Stop & Shop, a prominent grocery chain in the Northeast, is considering closing underperforming stores in Connecticut, according to sources familiar with the matter. The company, owned by Dutch retail giant Ahold Delhaize, has been struggling with declining sales and increased competition in recent years.
The potential closures come as Stop & Shop embarks on a store remodeling program, which has shown promising results. Recently renovated stores have outperformed older ones in terms of sales and customer satisfaction. These remodeled stores feature modern décor, expanded fresh produce sections, and improved customer service.
The decision to close stores will likely be based on factors such as sales performance, profitability, and the potential impact on customers. Stop & Shop has approximately 100 stores in Connecticut, making it one of the largest grocery chains in the state.
Sources say that the closures, if any, would be part of a "rationalization" strategy to improve the company's overall financial performance. Underperforming stores may be closed to free up resources for investment in stronger locations and further store renovations.
Stop & Shop has not publicly confirmed any plans to close stores in Connecticut. However, the company has been closing underperforming locations in other regions, including New York and New Jersey.
The potential closures have raised concerns among employees and customers. Union officials representing Stop & Shop workers have expressed opposition to any closures, citing the potential job losses. Customers have also expressed concerns about the loss of convenient shopping options.
Stop & Shop is facing intense competition from other grocery chains, including Walmart, Aldi, and Lidl. These competitors have been aggressively expanding their presence in Connecticut, putting pressure on Stop & Shop's market share.
The company is also grappling with rising labor costs and supply chain challenges. The COVID-19 pandemic has further disrupted the grocery industry, leading to increased demand and fluctuations in product availability.
Industry analysts say that Stop & Shop's store remodeling program is a positive step, but the company may need to take further action to improve its financial performance and compete effectively in the changing grocery landscape.
The company has not disclosed which stores may be considered for closure. However, sources say that older stores in less desirable locations may be at higher risk. Stop & Shop is expected to make a decision on store closures in the coming months.
