If you live in New England, there’s a high chance you get your groceries from Stop & Shop, the bustling grocery chain founded in Somerville, MA in 1914. Stop & Shop has been expanding since its founding over a century ago and now operates over 400 stores across the northeast United States.
Times are hard for all of us and that includes grocery and retail holding companies worth billions like Stop & Shop’s parent company, Ahold Delhaize. The Dutch-based company held its annual Strategy Day meeting last week and announced its strategy to improve the New England grocery chain’s performance. Underperforming is rarely a good sign for any business but don’t lose hope if you’re a Stop & Shop fan; it’s not over for the chain just yet.
Stop & Shop stores will be closing but it’s probably not as bad as you think
In a presentation for investors, Ahold Delhaize announced it will be closing some of its Stop & Shop stores located in the Northeast in the near future. “Stop & Shop has already evaluated its portfolio and will make difficult decisions to close underperforming stores to create a healthy store base for the long term and grow the brand,” Ahold Delhaize USA CEO JJ Fleeman shared in the Investor Day 2024 webcast.
Despite Stop & Shop’s impressive gains in the e-commerce space and a successful revitalization program, Fleeman admitted the growth wasn’t enough to prevent store closures; “That’s not enough, and it’s not where we want to be or need to be.” There’s no word on which stores will close or how many will be affected.
If you’re a frequent Stop & Shop shopper, your store might still be safe. Fleeman shared the roughly 190 remodeled stores are outperforming stores that have yet to be remodeled and that the company will be focusing 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.” It’s too soon to know which stores will be closed, but chances are your local store will be unaffected if it fits the above criteria.
Ahold Delhaize hopes the store closures will help Stop & Shop keep up with other U.S chains in the company’s portfolio like Food Lion and The Giant Company. “Stop & Shop has done a thorough evaluation and is focused on ensuring a stable and thriving future,” Fleeman said about the chain’s strategy. In closing, Fleeman says the company will be focusing on enhancing customer experience in well-performing stores by expanding local offerings, strengthening loyalty programs, and utilizing technology and AI.