the staff of the Ridgewood blog
Ridgewood NJ, in a recent investor presentation, Dutch-based retailer Ahold Delhaize unveiled its plan to close several Stop & Shop stores. This move is part of a broader strategy aimed at enhancing the overall performance of the supermarket chain.
A Century of Service and a New Direction
Stop & Shop, which celebrated its 100th anniversary in 2014, operates nearly 400 stores across the Northeast United States. While the exact number of closures has not yet been disclosed, Ahold Delhaize plans to provide more details later this year.
A spokesperson for Stop & Shop said, “We’ve completed more than 190 remodels to date, which continue to perform well, 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.”
Joining a Broader Retail Trend
Stop & Shop’s decision to close underperforming stores follows a trend seen among several major retailers, including Macy’s, Family Dollar, and Rite Aid. Many of these closures have been driven by challenges such as inflation and the growing shift to online shopping.
A Forward-Thinking Strategy Focused on Technology and Automation
JJ Fleeman, CEO of Ahold Delhaize USA, addressed analysts last Wednesday, stating, “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.”
In a press release, Fleeman highlighted a new strategic focus for Ahold Delhaize USA that leverages technology, including apps, AI, and automation, aiming for substantial cost savings. The company projects nearly $5.5 billion in savings over the next four years. Additionally, Ahold Delhaize is pushing to increase its private label product sales to account for 45% of total sales by 2028.
Despite a revitalization campaign initiated in 2018, which included remodeling nearly half of Stop & Shop’s locations, Fleeman acknowledged that the chain is “not where we want to be or need to be” and must adjust its course accordingly.
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