Stop & Shop closing 32 underperforming grocery stores in Northeast

Stop & Shop announced Friday that it will close 32 underperforming grocery stores in the northeastern United States by the end of the year.

The chain, which is owned by Dutch supermarket company Ahold Delhaize, said it would close 10 stores in New Jersey, eight stores in Massachusetts, seven stores in New York, five stores in Connecticut and two stores in Rhode Island.

The company said employees at the affected stores would be offered other jobs within the company. Asked by The Associated Press how many people are employed at the 32 stores, Stop & Shop declined to say.

Stop & Shop, which began in 1914 in Somerville, Massachusetts, operates about 400 grocery stores and has 60,000 employees.

In an interview with The Associated Press, Stop & Shop President Gordon Reid said the closures are a difficult but necessary step to stabilize the business.

“These stores are not making a profit,” he said. “They are taking away from the entire organization. We need to focus on the areas we need to invest in and want to invest in.”

Reid said Stop & Shop will continue to build new stores and remodel existing ones. The brand, which has remodeled 190 stores since 2018, will also invest in lower prices and promotions at its remaining stores, he said.

Reid said Stop & Shop will retain its buying power even with fewer stores because of its parent company. Ahold Delhaize operates more than 7,700 grocery stores worldwide, including the Food Lion and Giant brands in the United States.

Burt Flickinger, a longtime retail consultant and owner of Strategic Resource Group, said most of Stop & Shop’s problems were its own fault. The brand, for example, closed fresh meat and seafood sections in some stores, reducing customer spending at those stores.

Stop & Shop also faces competition from larger rivals like Walmart and Costco, as well as discount chains like Aldi and Lidl.

“Anywhere a Target, a Walmart, a Costco or a BJ’s has been built, a Stop and Shop is in jeopardy,” Flickinger said. “While they have a plan for the future, I’m not sure that plan is fully competitive given the level of competition that’s intensifying.”

Reid said Stop & Shop can compete because of its convenient location, high quality and wide assortment of products. Lower prices will also help the business, he added.

“Our customers love Stop & Shop and they want us to have a strong future,” he said.