USA- Ahold Delhaize, owner of the supermarket chain Stop & Shop, has announced plans to shut down an unspecified number of the chain’s underperforming outlets as it seeks to improve financial performance.
The chain’s owner announced it completed an evaluation of Stop & Shop’s portfolio. Ahold Delhaize USA CEO JJ Fleeman revealed underperforming stores will be shut down to establish a manageable store base for the long term.
“Stop & Shop has already evaluated its overall portfolio and will make difficult decisions to close underperforming stores to create a healthy store base for the long term,” Fleeman said during the event.
However, Ahold Delhaize failed to reveal the exact number of stores to be closed, stating it would reveal the exact number later in the year. The supermarket chain currently operates 397 stores in the US.
Instead, the chain will evaluate stores based on their potential and the value they add to the chain.
“The chain will focus on the markets that are most important, including those where the brand has strong density, holds a strong market position, or has stores that are performing well,” Fleeman continued.
As part of this improvement strategy, the supermarket chain is also expected to strengthen its position with customers on the East Coast through price reductions and a continuation of its store remodeling strategy.
Since the remodeling campaign started in 2018, the chain has already remodeled half of its US stores. However, the COVID-19 pandemic slowed this progress.
Stop & Shop has experienced a significant increase in sales and overall performance among remodeled stores, outperforming stores that have not been remodeled.
Ahold Delhaize also announced plans to embrace digital technologies as part of this improvement strategy. The chain has already built a robust digital engagement system which has the highest e-commerce penetration among Ahold Delhaize’s five brands in the US.
Ahold Delhaize revealed it expects to save an estimated US$5.5 billion by 2028 by using such cutting-edge technological resources. The owner plans to invest in AI, automation, and applications to enhance service quality and customer experience.
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