Delhaize America has announced key strategic actions to strengthen its US portfolio. The company plans to take these actions:
•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 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 in Clinton TN.
•Accelerate the rollout of the Food Lion brand strategy in an additional 600 to 700 stores.
“Today’s actions will continue to solidify our US 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, chief executive officer of Delhaize America.
All affected stores will close within 30 days, and store conversions will begin immediately. A complete list of store closings is available at www.foodlion.com/corporate/pressroom.
As a result of these actions, approximately 4,900 employees will be displaced. The company will provide severance to eligible workers and will work with government officials to assist with transition support. Employees are also encouraged to apply for open positions within the company. Most employees working at converted stores will continue to work at these locations.
Delhaize America will no longer operate the Food Lion banner in Florida, but will continue operations of its Sweetbay and Harveys banners in the state. The company is increasing its density of Food Lion stores in other states by converting Bloom and Bottom Dollar Food stores to Food Lion, specifically in Maryland, North Carolina, and Virginia. After these actions are complete, Food Lion will operate in 10 states and have 1,127 stores.
Bottom Dollar Food will open 14 stores in Pittsburgh and Youngstown OH by the end of the first quarter, and expects to open another 10 to 15 stores by year-end in its new markets. In addition, the company plans to add several hundred Bottom Dollar Food stores in the next five years.
After the conversions and store closings are complete, and the additional stores open this quarter, Bottom Dollar Food will have 43 stores in Pennsylvania, New Jersey, and Ohio. A current list of Bottom Dollar Food stores, as well as future locations, can be found at www.bottomdollarfood.com.
With the closing of the Clinton distribution center, Delhaize America will have 11 distribution centers across its network while maintaining additional capacity for future growth.
