Stop & Shop is closing some locations, adding to the list of underperforming stores to shutter

Dutch-based retailer Ahold Delhaize has shared plans to close a number of its Stop & Shop stores as part of a broader strategy to improve the performance of the supermarket chain. The announcement came during an  investor  presentation last week.



The regional supermarket chain, which celebrated its  centennial  in 2014, is one of Ahold Delhaize’s five U.S. brands, operating  nearly 400  stores across the Northeast United States. The specific number of stores set for closure has not been disclosed, but the company plans to provide this information later in the year.



“We’ve completed more than 190 remodels to date, which continue to perform well,” a spokesperson for 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.”



The brand is joining a growing list  retailers  that have closed underperforming locations or reduced their footprint this year, including  Macy’s ,  Family Dollar , and  Rite Aid , many attributing store closures to inflation and online shopping. 



Thinking ahead, with a focus on tech and automation



“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,” JJ Fleeman, CEO of Ahold Delhaize USA, said during a  call  with analysts last Wednesday.



In a  press release , Fleeman emphasized that Ahold Delhaize USA has a new strategy focused on leveraging technology, including apps, AI, and automation. This initiative aims to achieve significant cost savings, with projections nearing  $5.5 billion  over the next four years. Additionally, Ahold Delhaize aims to increase the share of its private label products, targeting them to account for 45% of total sales by 2028.



Despite a  revitalization  campaign that launched in 2018 and included the remodeling nearly half of the chain’s locations, Fleeman told analysts that Stop & Shop is “not where we want to be or need to be” and has to change course.