US supermarket group Winn-Dixie is to close 30 “under-performing” stores with the loss of over 120 jobs.
The firm said yesterday (27 July) that it will also consolidate its four operating regions into three as the company struggles in a “difficult economic and retail environment” in the south-east of the country.
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Around 120 job losses will come from cuts in corporate and field support staff, and will be in addition to the posts lost from the store closures, which the company has not detailed.
The firm said it expects to achieve annualised savings in the range of US$12m to $17m as a result of these actions, which should begin to be realised after the end of the first quarter of fiscal 2011 due to timing and transition costs.
Winn-Dixie chairman, CEO, and president Peter Lynch said the closures are being made in a bid to lower the company’s cost structure, improve efficiency, and “build the right foundation” for the business in the future.
“We continue to operate in a particularly difficult economic and retail environment in the Southeast. To respond to these business and economic conditions, we have thoroughly reviewed our retail operations and support structure and have decided to exit certain retail locations and reduce our corporate and field support staffs,” Lynch said.
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By GlobalData“We sincerely regret the impact this will have on some of our associates, and we will make every effort to ensure these associates can pursue other open positions or have a smooth and respectful transition.”
The store closures and job cuts are expected to be completed by the end of the first quarter of fiscal 2011, which ends on 22 September.
A listing of the 30 store locations to be closed will be available on the company’s website tomorrow.
