'Underperforming' Stop & Shop Stores To Close, RI Locations Await Fate

RHODE ISLAND — Stop and Shop officials said in a recent presentation to shareholders that a number of "underperforming" stores would close as "significant savings" remain a focus of parent company Ahold Delhaize. The fate of Rhode Island's 27 stores — nor any in the Northeast — was not outlined, however.

The goal of the grocery chain, according Ahold Delhaize USA CEO JJ Fleeman, it to "strengthen its position." Aside from closing lagging stores, part of the strategy is "investing" in price reductions and store remodeling projects, Fleeman said.

The complete presentation for "Strategy Day 2024" can be seen here.

According to Fleeman's presentation, the "value proposition and pricing" at Stop & Shop stores are "simply not strong enough."

Stop & Shop's Rhode Island presence includes:

• Bristol(1)
• Coventry(1)
• Cranston(3)
• Cumberland(1)
• East Providence(1)
• Greenville(1)
• Johnston(1)
• Lincoln(1)
• Middletown(1)
• Narragansett(1)
• Newport(2)
• North Kingstown(2)
• North Providence(1)
• North Smithfield(1)
• Pawtucket(1)
• Providence(3)
• Richmond(1)
• Warwick(3)
• Westerly(1).

A four-year strategy, Fleeman said, includes a $1 billion investment, store evaluations and "optimizing the portfolio to focus on core markets where (the brand) can win."

Stop & Shop has remodeled about half of its nearly 400 stores since a capital campaign began in 2018, according to Fleeman.

He said Stop & Shop has seen "notable" performance gains among stores it has renovated, and those stores are outperforming locations that have not been remodeled.

The chain has built a digital engagement that has the highest e-commerce penetration among Ahold Delhaize’s five U.S. banners he said. Ahold Delhaize's U.S. holdings also include Food Lion, Giant and Hannaford.

According to Fleeman's presentation, 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."

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