Grocery chain Stop & Shop has stated it plans to close “underperforming” locations.
The chain is one of several brands owned by its parent company, Ahold Delhaize, which also owns Food Lion and Giant. While the brand has remodeled 190 of its stores, some locations will not be given the same treatment and instead be shut down.
“Stop & Shop will make some difficult decisions to close select underperforming store locations to help ensure the long-term health and future growth for our business,” a statement shared with the Washington Examiner said. “It is too early in the process to share any additional information regarding potential store closures.”
Stop & Shop has just under 400 locations, with Massachusetts having the most at 125. The only other states with a Stop & Shop are New York, New Jersey, Connecticut, and Rhode Island.
The chain’s announcement of its plans to close its locations comes as inflation has caused some grocery stores to reduce costs to lure customers back in. Walmart, for example, revealed earlier this year the new brand called bettergoods, which sells items at prices anywhere between $2 and $15.
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The restaurant industry has also taken a hit from rising food costs, as Red Lobster announced earlier this month that it is filing for bankruptcy. Court filings revealed that the company has more than $1 billion in debt, compared to the $30 million in cash on hand.
Former CKE Restaurants CEO Andy Puzder recently predicted that more closures in the restaurant industry are likely on the way due to rising food costs, and that “there’s only so much you can do to reduce prices.”
