Stop & Shop supermarket chain sparks fears of mass closures as 'difficult' decisions hinted at by bosses

Stop & Shop is planning to shutter 'underperforming' stores over the next few years.

The Massachusetts-based company has almost 400 stores in five states: with New York, New Jersey, Connecticut, and Rhode Island as well.

The store closures were announced during its parent company Ahold Delhaize's 'Strategy Day' last week, where a four-year plan for its brands was outlined.  

'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 and grow the brand,' said JJ Fleeman, CEO of Ahold Delhaize.

He said that despite strong location competition, the retailer has strong market share and has seen its rewards program and online sales grow.

But he added: 'That's not enough and it's not where we want to be or need to be.'

It has 'remodeled' 190 stores and plans to spend $1billion on more improvements and on price cuts to attract shoppers.

Stop & Shop stores are about 55,000 to 75,000 square feet - the standard size for a US supermarket. 

That is bigger than a Walmart Neighborhood Market at about 40,000 square feet but dwarfed by a Walmart Supercenter at 180,000 square feet.

When asked which stores will be closed, Stop & Shop declined to provide specifics. 'It is too early in the process to share any additional information regarding potential store closures,' the company said in response to an inquiry from WBZ-TV.

Looking ahead, Fleeman also talked about the 'next phase' for Stop & Shop.

It will included ' a focus on quality, fresh products, well-stocked shelves, further supply chain efficiency, and fantastic service in each of its stores.'

Meanwhile, other major retailers are rolling out summer deals on groceries to help shoppers affected by inflation.

Walmart, Aldi, Target and Amazon Fresh have announced price cuts on thousands of food and grocery items.

Planned closures of Stop & Shop come amid a widespread 'retail apocalypse' that is seeing bricks-and-mortar stores struggle to combat rampant theft and increasingly tight margins. 

By the end of April, US retailers had announced the closure of almost 2,600 stores in 2024 - just four months into the year.

Walmart, which has shut eight in 2024.

Earlier in April, dollar store 99 Cents Only said it will shutter ALL its 371 shops, while Best Buy closed ten in March. 

Dollar Tree is closing 1,000, Macy's 150 - a third of its total - and drug store Rite Aid 77.  

In recent months, there has been a spate of bankruptcies adding to store closures.

National coffee and upmarket grocery chain Foxtrot also said  at the start of April it will shut all its stores with immediate effect - leaving staff and customers stunned.

Express - a mall staple - filed for bankruptcy in April and said it would shut 95 Express outlets alongside all of its UpWest stores.    

At the start of May, Rue21 - the teen fashion chain that is a fixture in malls across America -  also said it will shut all  its 543 US stores.