Albertsons Inc. (Boise, Idaho) has announced it will exit the New Orleans marketplace, either closing or selling all of its stores there.
The 2300-unit grocery retailer disclosed that it has entered into a definitive agreement to sell four of those stores to the Great Atlantic & Pacific Tea Co. (Montvale, N.J.). Discussions are underway with other potential buyers for the balance of the stores and sites in the marketplace.
“This market exit is consistent with our strategic imperative to maximize return on invested capital,” said chairman and ceo Larry Johnston. “In markets where we are not number one or two, and cannot see a path to either get there or generate an acceptable return for shareholders, we will exit and use the proceeds to invest elsewhere.”
The company insisted this decision affects only Albertsons stores in the New Orleans marketplace. It does not impact other Louisiana markets, such as in Baton Rouge where the company is a market leader.