The parent company of announced plans today to close 27 of its under-performing grocery stores across the country, including 19 in Southern California.
``These decisions are never easy because of the impact a store closure has on our team members, our customers and our communities,'' said Wayne Sales, president/CEO of Supervalu Inc. ``Today's announcement reflects our commitment to move with a greater sense of urgency to reduce costs and improve shareholder value.''
The company's announcement did not include a list of stores being closed. The Los Angeles Times reported that stores in Long Beach, Glendale, Northridge and Van Nuys are among those on the chopping block. One of the affected stores, located in Culver City, closed last month.
A statement from Supervalu indicated that the stores being closed are either under-performing of ``non-strategic.''
Most of the affected stores are expected to be closed by December. Supervalu plans to close 60 of its stores nationally, including 22 Save-A-Lot stores, four ACME stores and a Jewel-Osco location.
-City News Service
This is the beauty of the American capitalist system, and over the long run it's a good thing, because you can actually decide to NOT to continue malinvestment in markets or areas that have poor profit yields. You can also close underperforming businesses, can the management (and the workers, true) but re-align the business to better compete. Just go to one of Albertson's competitors and compare prices. Times are tough economically for most, they're prices are too high vis-a-vis local competitors, ergo They're getting their butt kicked.
"An assistant store manager can earn six figures. Full time clerks, who are called "crew members," can start in the $40,000 to $60,000 range. On top of that base pay, Trader Joe's makes an annual contribution of 15.4 percent of the employee's gross income to a tax-deferred retirement account." http://jobs.aol.com/articles/2010/12/29/trader-joes-six-figures-for-assistant-managers/ "Part Time Crew Members are eligible for medical, dental and vision coverage after meeting the eligibility requirements." http://www.traderjoes.com/careers/careers-faq.asp#PartTimeBenefits
I guess that says it all