Ahold Delhaize is Closing "Underperforming" Stores of Shop & Store , marked this as "Difficult"
The CEO of Ahold Delhaize described the decision to close shops and stores as "difficult" and said that the company took this decision after a deep "evaluation".
Although the company has not yet disclosed the exact location of the stores, it has said that the stores which are recently renovated are very less likely to be closed.
Ahold Delhaize is on the way to close "Underperforming" Stores of Shop & Store
This "difficult" decision of shutting down "underperforming" stores of Shop & Stores was taken at the Investor Day Meeting of grocery chain parent company Ahold Delhaize on May 23.
Marked this as "Difficult Decision"
JJ Fleeman, Chief Executive Officer of Ahold Delhaize USA, talked about the benefits of difficult decisions like closing stores on an analyst call last Wednesday, marked that, "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."
Less Possibility of Recently Renovated Stores
JJ Fleeman, CEO of Ahold Delhaize also said that there is a little possibility that the Shop and Stores that have been recently renovated may be closed. According to him, 190 stores have been renovated since 2018. It was observed that the Performance of renovated Stores far much better that the Stores which are not Renovated.
Keep Eye on Postion and Performance
The Chief Executive officer of United States JJ Fleeman said while emphasizing on the performance of the company said that the company will keep eye on the brand density, position and performance of its individual stores in the market.
"We’ve completed more than 190 remodels to date, which continue to perform well,” a spokesperson from Stop & Shop told Fast Company, “and we’re committed to continuing to invest in our stores—as well in our prices—to deliver a great in-store experience and great values for our customers.”
For "Stable and Thriving Future"
Fleeman also said in the meeting that Shops & Stores have conducted a deep "evaluation" in order to bring a "stable and thriving future." Which includes targets like Consumer Services, "Investment in Price" and Portfolio Optimization in order to "focus on core markets where it can win."
Focus on Modern Tech including AI and Automation
Emphasizing on technology, Fleeman said that as per the new strategy of Ahold Delhaize USA, Shop and Store will now also focus on unique technologies like AI and Automation. , due to which the company will be able to save $ 5.5 Billion in the next 4 years. Additionally, by 2028 the company has also set a target to surge the sales of private label products by 45% in the coming 4 years.
Closure of Macy's, Family Dollar and....
Shop & Stores has now been included in the list of those Retail sellers who have closed "underperforming" stores in the past year due to inflation and growing interest in online shopping — these Stores including Macy's, Family Dollar, and Rite Aid and many more.
A Glance at Expansion of Shop & Stores
According to the official website of Shops and Stores, the company has most of its stores in Massachusetts, 125 stores in Massachusetts, 57 in New Jersey, 100 in New York, 27 in Rhode Island and 88 in Connecticut. Shop and Stores have total 397 Stores.
A Multinational Dutch-Belgian Retail Company
Ahold Delhaize is a Dutch Belgian Multinational Retail Company. Ahold Delhaize runs various types of food related businesses in Retail Format, which includes Supermarket, Online Grocery, Liquor Stores, additionally it also has 16 Subsidiaries. Ahold Delhaize was founded on 25 July 2016 in Zaanadam Netherland. The company has 4,14,000 employees working in 7656 stores of its 21 local brands. Ahold Delhaize's 2022 revenue was €87 billion ( $94.32 Billion) and Net income of €2.5 billion ( $2.71 Billion).
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