Stop & Shop closing 32 underperforming grocery stores in the Northeast

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Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. stabilize / ˈsteɪ bəˌlaɪz / (v.) – (in business) to continue in a regular and successful way without unexpected changes
    Example:

    The manager helped stabilize the business by improving its customer service.


  2. remodel / riˈmɒd l / (v.) – to change the design and look of something to make it more attractive and modern
    Example:

    The restaurant closed for a month to remodel and expand the dining area.


  3. longtime / ˈlɔŋˌtaɪm / (adj.) – having existed for many years
    Example:

    He is a longtime math professor known by everyone in the university.


  4. self-inflicted / ˈsɛlf ɪnˈflɪk tɪd / (adj.) – relating to problems, pains, and difficulties that a person has caused on himself/herself
    Example:

    The company’s losses were self-inflicted because of poor management decisions.


  5. in jeopardy / ɪn ˈdʒɛp ər di / (idiom) – in danger of being damaged, harmed, or destroyed
    Example:

    If he continues to arrive late every day, his job is in jeopardy.


Article

Read the text below.

Stop & Shop said it will close 32 underperforming grocery stores in the Northeast U.S. by the end of the year.


The chain, which is owned by the Dutch supermarket company Ahold Delhaize, said it will 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 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 wouldn’t say.


Stop & Shop, which got its start in 1914 in Somerville, Massachusetts, operates around 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 take away from the whole organization. We need to focus on the parts that 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.


Stop & Shop will continue to have buying power even with fewer stores because of its parent company, according to Reid. Ahold Delhaize operates more than 7,700 grocery stores worldwide, including the Food Lion and Giant brands in the U.S.


Burt Flickinger, a longtime retail consultant and owner of Strategic Resource Group, said many of Stop & Shop’s problems were self-inflicted. The brand closed fresh meat and seafood counters in some stores, for example, which cut down on the amount customers spent in those stores.


Stop & Shop is also getting squeezed by big rivals like Walmart and Costco, and discount chains like Aldi and Lidl.


“Wherever a Target, a Walmart, a Costco or a BJ’s has been built, a Stop & Shop is in jeopardy,” Flickinger said. “While they have a plan going forward, I’m not sure the plan’s going to be fully competitive given the intensifying level of competition.”


This article was provided by The Associated Press.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

  • According to the article, Stop & Shop will be closing 32 stores, but it will continue to build new stores. In your opinion, is this a wise decision? Why or why not? Discuss.
  • Stop & Shop President Gordon Reid said the closures are a difficult but necessary step to stabilize the business. Do you agree that in business some steps are difficult but necessary? If you owned a business, would you be willing to make a difficult but necessary step or decision? Discuss.

Discussion B

  • How do you think big grocery stores affect the small grocery stores in your community? Could big stores lead to the closing down of smaller ones, similar to Stop & Shop’s situation? Why do you think so? Discuss.
  • How do you think smaller grocery stores can compete and survive against their bigger rivals? If you had a small grocery store business, what would you do? Discuss.