Wednesday, January 11, 2012

Food Lion to close 113 stores

Delhaize, the Belgian supermarket transnational that owns Food Lion, Bottom Dollar, Bloom and other brands, said late Wednesday that it plans to close 113 underperforming Food Lion stores in the U.S.

No Food Lions in Charlotte are on the chopping block, but a Food Lion at 825 Crossroad Plaza in Fort Mill will be closed. In all, the Food Lion closures represent about 10 percent of the Salisbury-based chain's total store count.

Also, six Bottom Dollar grocery stores, including the one in Mooresville, will be closed. Another 22 Bottom Dollars in Maryland, Virginia and North Carolina will be converted to Food Lions. The company did say it plans to add hundreds of Bottom Dollar stores in the coming years, as consumers look to deep discount store formats for savings.

The 42 remaining Bloom stores will be converted into Food Lions and seven will be closed, ending an experiment with a new supermarket brand that began in North Carolina. The company already converted local Blooms into Food Lion stores months ago. At the time, Delhaize said it wanted to focus on growing the Bloom banner around Washington, D.C.

Delhaize America is closing a total of 126 stores across all of its brands, and 4,900 workers will lose their jobs. The store closures will be complete within 30 days, the company said.

"Today’s actions will continue to solidify our U.S. 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 Delhaize America CEO Ron Hodge, in a statement.  “While these were difficult decisions given the impact on our associates, customers and communities, we believe these actions will enable us to better serve our customers in our markets with high density, while positioning the company for future growth.”

The move represents a complete pull-out from Florida for Salisbury-based Food Lion; the retailer will no longer operate any stores in the state. Delhaize is also closing a distribution center in Tennessee.

There will be 1,127 Food Lions once the closings and store conversions are complete. Food Lion said the move will allow the company to focus one areas where Food Lion already has a lot of stores or a large share of the market.

A complete list of stores affected is available here. You can read the company's press release here.

Delhaize also reported its 2011 earnings. Revenue from all U.S. stores was up a modest 2.2 percent, reaching $19.2 billion. Sales at stores open a year or more, an important measure of a retailer's health, grew only 0.7 percent in the U.S. for the full year. In the fourth quarter, however, sales at stores in the U.S. open a year or more fell by 0.4 percent.

The store closings will reduce Delhaize's total number of stores by 4.3 percent. Interestingly, Delhaize said it expects the closings will cost it $650 million in revenues, but increase operating profit by 35 to 40 million euros (the Belgian company records its profits in the European currency).

53 comments:

Anonymous said...
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Anonymous said...

Looks like Bloom & Bottom Dollar was just a huge financial mistake. Maybe it should go back to being an American company...

Anonymous said...

Really surprised that the one on S new Hope in Gastonia NC isn't on the list.... always empty

Anonymous said...

Was praying the one on Davie Ave. in Statesville was on the list so we could get a better store here. Ingles out of Asheville is a far superior store. A Trader Joes would be awesome as well.

Anonymous said...

Anonymous 12:26 - understand that Food Lion is an "American company" just owned by overseas interests. The fact is it was on death's door once before and that is why it had to be rescued by the overseas company (or it would have likely shut down completely). Don't think not being (in you opinion at least) an "American company" has anything to do with this. The fact is their stores aren't competitive in most markets and they are likely going to die a slow death (as they should). Business is about survival of the fittest and that has nothing to do with who owns them but is all about the quality of the product they offer. BTW, you do know that many other large US companies (including Budweiser) are "owned" by foreign corportations (just like US companies own many foreign brands). Get over the anti-foreign feelings - that isn't the problem.

Anonymous said...

Food Lion has become irrelevant, and just as Anonymous 6:25 said, is going to die a slow death. I worked for the company for 10 years back in the 80's when it was a lean player in the grocery store wars. They were fanatical about making money in areas of the store where other chains just look to break even (i.e. produce). And they did it, too. Now, they are a joke..marketing is pathethic. Bloom was the Food Lion pig with lipstick on it. Do you think Bottom Dollar will ever be able to compete with Aldi? There goes quite many more millions down the drain. Like all other big, U.S. companies, it became top heavy, and all the bigwigs were looking out for #1...themselves. This is epidemic in American businesses and something that is not talked about as a serious problem with regards to our current economic situation. It is just chalked up to the housing and finance industries. American business mangement models are killing our country. You know the routine..edicts flow from the top oblivous to the realities on the ground, and the crap then flows downhill to frontline supervisors whom are glorified whipping posts, catching all the grief and blame for being unable to effect circumstantial change which they are powerless to bring about. Retail, manufacturing (think mills, locally), the postal service, and the list goes on. Go ahead and blame the worker if you like, but it is good old American management culture with its head up its' A that is killing our country.

Anonymous said...

Food Lion really is just a horrid place. There is one a mile from my home so in an emergency I will shop there. Otherwise I drive 15 minutes and pass 2 other Food Lions to get to Harris Teeter. Food Lions are just disgusting stores.

Anonymous said...

Grocery shopping need not be an experience.

Anonymous said...
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Anonymous said...

Well, 7:39, I think that is indeed the solution Swill Kitty...er, Food Lion has chosen for itself.

No one shops there.

Anonymous said...

7:32, grocery shopping is indeed an experience.

That's why stores like Trader Joe's and Whole Foods are booming.

The experience they offer is excellent.

The experience that Food Lion offers is gross.

That's why they're slowly dying.

Anonymous said...

Our Food Lion and Bloom here in Quitnon, VA are very nice, clean, the people that work there are helpful and courteous. Have't had any problems with either store and enjoy shopping at both. Seems you folks that are bitchen about them have your noses stuck too far up your butt. If you don't like the store, don't shop there but think of the people that are now out of a job.....but for the grace of Goodness, it could have been YOU!

Anonymous said...

The fact that Food Lion is a leading contributer to the gay rights agenda is a reason I will not shop there. Could it be that that they are beginning to pay for their wrong choices?

Anonymous said...

Yes, oh yes 8:03.

Jesus came down and smited Food Lion for its contributions to the "Gay rights agenda."

What a buffoon.

Anonymous said...

Like EVERY retail chain, every store is a local store. The kind of experience you have, the cleanliness of the store, the helpfulness (or not) of the employees...pretty much everything but the prices....is the result of the local store manager. If he cares, the store is a good one, if he doesn't, it sucks.
If there's a problem...he's or she's the reason.

Anonymous said...

They carry the best leafy green vegetables like collards and kale. It's always grown locally and usually you can get a huge bunch for around $1. I've tried buying it at Harris Teeter, and it's often times wilted, half the amount, and twice the price.

Anonymous said...

I'm confused by Observer commenters. They moan and groan about how awful the economy is and how they can't afford to do anything, yet they all seem to shop at Harris Teeter?

TC said...

And eventually Pubix will wipe out the rest of the Food Lion stores!

Anonymous said...

Hey...8:03. So you think they being punished for pushing for rights of gay citizens. Why don't we call them what they really are ... AMERICAN citizens. No one is THIS country should have to fight for a right. Ugh!! I can just imagine you, your friends, your ignorant conversations, your pathetic use of religion to justify anything that happens (good or bad), and your white hooded robe in the closet. Please, do yourself and others a favor and put the bible down and get a real education. You idiot.

Anonymous said...

Now you want to talk about a disgusting store? Publix is a disgusting store. Been to several of them in Florida, and I'd rather drink turpentine and pee on a brushfire than shop at one of them. Maybe if you folks didn't live in the Ghetto, then you could visit a nice clean Food Lion like the couple that I have here in my local town. If you don't like Food Lion, then keep shoppin at Wal-Mart and support the Chinese, who are whipping us now economically.

Anonymous said...

If u want an experience at a grocery store, I promise you pay for it.

Anonymous said...

I just can't stop laughing at the idea of closing a Food Lion in Statesville in hopes that Trader Joe's will open a store there.

todd said...
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EuroCat said...

I don't understand people's problem with Food Lion. Frankly, I prefer Food Lion to Harris Teeter strictly on a price basis.

Fortunately, in Waxhaw we have both a Food Lion and a Harris Teeter within reasonable distance. I shop at both, using each store's "loyalty" card to get the best prices in a given week. Ironically, though, HT's prices are sometimes so far out of whack - on the high side - that the "VIC-card discount" price at HT is still higher than FL's regular price.

I find the Waxhaw FL to be fine from a cleanliness and convenience standpoint. There is no denying that FL's regular prices are lower than HT's on most grocery staples. I see no reason to pay more - a lot more - to support the fancy shelving, track lighting, and other "amenities" that one finds at HT...after all, I can't eat the track lighting in the wine department (even though I'm paying for it).

Unfortunately, we seem to have a "disconnect" in this region, and probably in the whole country: people complain about how expensive things are, then the same people go right out and waste money on the decorative excesses of a Harris Teeter because - well, because it's "trendy". I have to hand it to HT's marketing geniuses, though: they've certainly "decoded" the buyer's motivations, and their success at convincing people to pay more for the same product has proven their business savvy.

Me...I'll continue to shop PRICE, at least on the idedntical items. I hope that Food Lion can maintain their niche of "reasonably priced grocer" so that I'll still have the convenience of shopping at the Waxhaw Food Lion when I'm not in the mood to waste money.

Anonymous said...

Obviously, many people like clean stores and fresh meat and produce. It's the reason stores like The Fresh Market and Whole Foods are successful and Food Lion is not. I went to a Food Lion last night and saw oranges with mold on them. Some looked like bugs had eaten them. People don't like seeing that at a grocery store. Why is that so hard to understand?

Kingward said...

Not surprised they got run out of Florida. Publix rules among the free-standing stores in Florida.

Anonymous said...
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Anonymous said...

Kingward said...
Not surprised they got run out of Florida. Publix rules among the free-standing stores in Florida.

Publix is getting ready to rule here too :) BTW the new Publix store in Fort Mill is being built about 2 miles from the Food Lion being closed. They prob saw the writing on the wall.

Anonymous said...

Have your ever tried to find someone to help you in a Food lion store.They usually have one cashier and one store manager who is trying to do the work of ten people.The are okay for convenience store type shopping but from a customer wervice standpoint they are the worst.

Anonymous said...
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Anonymous said...

food lion stores remind me of winn dixie stores in florida. that have that dingy look and smell.

Anonymous said...
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Anonymous said...

"TC said...

And eventually Pubix will wipe out the rest of the Food Lion stores!
January 12, 2012 8:20 AM
"
and Walmart will wipe out Pubix

NCdirtdigger said...

And here I thought the speaker told us that more unemployment checks would be good for the economy.

Anonymous said...

I have a Food lion close to my house, and I don't shop there that often, because their prices are so high and their food is not really that fresh, have had to take back spoiled meat, several times and staff is often rude or not very friendly...maybe they could open up a better type of store, with lower prices...in todays economy...people want low prices...

WashuOtaku said...

TC said @ 8:20am - "And eventually Pubix will wipe out the rest of the Food Lion stores!"

You're giving them way too much credit and its obviously not the case. Food Lion already competes with Publix in Georgia, South Carolina and Tennessee. Also, other regional stores still compete in those areas too like Piggly Wiggly, BiLo, Winn-Dixi, and Ingles (naming a few). Of course, the real winner in the grocery wars is Wal-Mart, where most people shop nowadays.

Anonymous said...

Die a slow death??? Maybe you goons should take a look at the income statement....or do you even know what that is? Delhaize/Food Lion is not going anywhere.....look at the numbers.

Anonymous said...

Why are all the currency amounts in dollars and then at the end it is in euros with out conversion?

arejaye said...

Food Lion(which even the name makes no sense...what is a Food Lion anyway?)became a ghetto store after good ol' Ralph Ketner decided to sell out to a Belgian company. Store closing? In my opinion, good ridance. It'll make store space available to Publix to come in and create a strong base around here. Byebye FoodLion, we'll(not) miss you!

Anonymous said...

im a foodlion employee. ive often describe the company as the titanic....its floating out to sea just looking to nail any and all icebergs it can find.slowly sinking,and taking its employees with it.we dont get sent to other stores.we all get laid off, and depending on our trade(meatcutting, management,exptional ass kissing)we might get picked up. its a cutthroat company in a cutthroat world

arejaye said...

I've seen and read some post touting WalMart as the place to shop for groceries. I shopped there once, and like most people, my grocery list generally has the same stuff on it, with the rare "luxury" treat like maybe steak or crablegs. Anyway, the one and only time I shopped there, what I bought compared to my normal shoppin' at other stores was almost $30 MORE! I left the food and walked out. It(WalMart) isn't the best deal in town, and should, if for no other reason, be boycotted to hopefully help bring some US jobs back. Remember when they bragged "Made in the US" on their store front?? When you buy anything from WalMart now, you help support the loss of AMERICAN jobs. One time was enough for me, and like I said, I just walked out and didn't buy anything when it was all said and done

arejaye said...

Anonymous said...

"The fact that Food Lion is a leading contributer to the gay rights agenda is a reason I will not shop there. Could it be that that they are beginning to pay for their wrong choices?"

I agree with the poster right after you, and that (not so ) brilliant statement. You're a buffoon

Greg from Greensboro said...

I don't understand all the Food Lion hate. We've shopped there for decades in locations all over North Carolina and never had a problem with the stores or the food. There overall prices are low, definitely lower than Harris Teeter and other "shopping experience" stores. And the MVP specials are great and happen frequently enough that maintain staples and paper products at the even lower MVP prices. So for 92% of what we need, Food Lion is great. If we want better cuts of meat or other specialty items, we try to get those from local places. If grocery snobs don't like Food Lion, so what? You're not the target demographic. They're business model is to sell food to the masses. Which makes WalMart and Lowes Foods their biggest competitors, not the snob markets.

Anonymous said...

I shop mostly at HT for convenience. The stores are clean and neat and the employees very friendly. I shop occasionally at the Food Lion (formerly a Bloom)on Park Road in Charlotte. It is a very nice clean store, fresh produce and prices are much better than HT. I agree with a previous poster that the store manager is responsible for how a store is run.

Greg from Greensboro said...

Dang. Wish there was an edit button. Replace "their," "there," and "they're" as appropriate above.

Anonymous said...

@Greg - I agree. But that business model isn't doing so well. Strong companies don't have to close 100 stores at a time, lay off thousands or "retire" or convert brands they created only seven years ago (Bloom & Bottom Dollar).

Consumers speak with their wallets, and they're saying they want better products and a better experience. They like clean stores, variety and friendly and helpful employees.

Food Lion, as proven by today's announcement, isn't what consumers want.

Anonymous said...

The problem lies within corporate. Ive been an assistant manager for foodlion for 7 years, and seen this coming. All these big wigs that have degrees, but no understanding of the business are to blame. If the company wants to know how to make the company more profitable and free up cash flow, get a meeting with store managers and assistant managers by district. I think we at store level have some jaw dropping info for them book smart bigwigs with no common sense.

Anonymous said...

I worked at Food Lion's corporate office several years ago. The poor overall results of the company and the closings do not surprise me at all. The organization is populated by former cashiers and baggers with no experience outside of Food Lion. Bloom and Bottom Dollar should have been closed a long time ago.

Anonymous said...

The reason they arent competing is because they refuse to compete with anyone toting a coupon. I used to shop there, and when I started back to really using coupons, they were very strick and very harsh about what was allowed. Every store has some reason why it wouldn't allow or not allow something. They thought they were too good to compromise, their coupon policy was hideous to say the least. You can't expect business to work unless you work to get the business.

store 1679 said...

Food Lion people are good people. It's the higher ups that ran it in the ground. Stupid ideas like " WELCOME TO FOOD LION" scripted greeting is just one example.

Anonymous said...

All in all....food lion will
Eventually
Die. In north
Carolina there are other grocery stores that offer
Buy one get one free over the entire store weekly. That's where food lion lacks (weekly sales suck). Not to mention Harris teeters and lowes food stores tripling the
Face value of
Coupons WEEKLY! As a beverage vendor...this is where
Food
Lion looses big time

Anonymous said...

All you people with food Lion & Harris Teeter you all need to shop at stores up North Like Wegmans,then you would see a real grocery store and good prices too bad they are not in NC

Anonymous said...

Worked for Food Lion for about 5 years. horrible place to work,they'd pressure you into working off the clock. (ILLEGAL!!!)...,and the practices of the management,i would not buy groceries at ANY food lion.
No matter how "nice" their stores may look trust me...it's a nasty place to work!!! And the corners that the meat and deli' dept's...cut to make deadline's...and repackage "expired" food/meat/salad.

YES THEY DO THIS....of course I quit in 2002..i was basically fed up with the crap.