The cost-cutting measures hinted at by Delhaize, the Belgian parent of US supermarket chain Food Lion, are coming into effect with the closure of 41 Food Lion stores.
The loss making stores in question are situated across ten different US states, and will close by the end of January, reported the Lexington Herald Leader. In all, some 1500 employees will be affected by the closures.
“These stores are not generating sufficient revenue to cover operational expenses,” said Rick Anicetti, president and chief executive of Salisbury, N.C.-based Food Lion. “It is not financially responsible to keep them open.”
Some 400 jobs will go in the company’s corporate administration, distribution centres, and transport and field management divisions. These are in addition to the 1500 cuts announced this week, and will take effect over the next six months, the company said.
However, the news is not all bad – Food Lion also plans to open 45 new stores in more profitable areas in the coming year.