US grocery retailer A&P is to close 25 stores as part of management’s strategy to turn around the business.
The stores are located across five states and include those close to other outlets, those facing “real estate and cost issues” and under-performing non-core stores, A&P said on Friday (13 August).
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The closures are expected to be completed in the company’s fiscal third quarter.
A&P president and CEO Sam Martin said: “We are moving forward aggressively to advance our turnaround and position A&P for a strong future. Even as we reduce our store base and drive efficiencies across our company, A&P continues to remodel stores and take other important steps to enhance our customers’ experience across our store formats. To this end, we are set to re-open two newly remodelled stores in the coming month.”
The company’s turnaround initiative was announced last month and is designed to generate sustained profitability and cash flow, drive sales growth and restore “competitive” margins.
A&P has rasied eybrows within the industry, appointing two CEOs in the course of six months. The company appointed former Borders boss Ron Marshall to lead the company in January, but he was replaced by former OfficeMax executive Sam Martin in at the end of July.
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By GlobalDataAt the time of his appointment, executive chairman Christian Haub said Martin’s remit was to take forward the company’s “operational and revenue-driven turnaround initiative”.
