Albertson's Inc., the Boise, Idaho-based supermarket giant, has announced it will close 165 underperforming stores as part of an effort to reduce overhead and consolidate to restore profitability.
“We are continuing our in-depth operations review,” said chairman and ceo Larry Johnston. “The major actions announced today are just the first in a series of long overdue steps that are necessary to begin unleashing the vast potential of this company.”
These initiatives include a significant reduction in administrative and corporate overhead, store closures, division consolidations and process streamlining. Over the next year the company will accelerate the disposal of surplus property and close approximately 165 underperforming stores throughout 25 states, which represent $1.4 billion in annual revenues. In addition, a major reduction in corporate overhead will be implemented, eliminating 15- to 20-percent of managerial and administrative jobs above store level. The number of operating divisions will also be reduced, from 19 to 15, starting immediately. Johnston said, “These actions are focused on building a more efficient foundation for this company and providing the fuel to accelerate profitable growth while strengthening our market positions.
Albertson's operates 2541 retail stores in 36 states and has annual revenues of approximately $37 billion.