January 12, 2012
Belgian supermarket chain Delhaize says it is cutting almost 5,000 jobs in the United States as it closes underperforming stores. The company plans to take the following actions with respect to its stores:
- Close 113 underperforming Food Lion stores, primarily in markets in which the company has the least store density;
- Retire the Bloom banner;
- Convert 64 Bloom and Bottom Dollar Food stores in Maryland, North Carolina and Virginia to Food Lion stores;
- Close seven underperforming Bloom stores and six underperforming Bottom Dollar Food stores in overlapping Food Lion markets;
- Convert one Food Lion store in Florida to a Harveys store;
- Discontinue operations of its distribution center located in Clinton, Tenn., and
- Accelerate the roll out of the Food Lion brand strategy in an additional 600 to 700 stores.
Eight Virginia and West Virginia stores are among the Food Lion supermarkets closing. They are in Appomattox, Bristol, Elkins, Lynchburg, Radford, Richmond (2), Roanoke. Others states with closings are: Florida, Georgia, Kentucky, North Carolina, Pennsylvania, South Carolina and Tennessee.
"[These] actions will continue to solidify our U.S. operations and enable our company to focus on our successful brand strategy repositioning at Food Lion and the expansion of Bottom Dollar Food in new markets," said Ron Hodge, CEO of Delhaize America. "While these were difficult decisions given the impact on our associates, customers and communities, we believe these actions will enable us to better serve our customers in our markets with high density, while positioning the company for future growth."
All affected stores will close within 30 days, and store conversions will begin immediately. For a complete list of store closings, click here.