Albertson's to close 165 stores
Jul 23, 2001 12:00 PM, Misty Reagin
Boise, Idaho – Locally based Albertson’s Inc plans to close about 165 stores in 25 states and eliminate 15% to 20% of managerial and administrative jobs above store level. The No. 2 U.S. supermarket chain also will take a charge as part of a broad effort to lower costs and spur future growth and returns.
Chairman and CEO Lawrence Johnston said the move will cost $585 million to cover restructuring but will allow the company to reach its expense reduction goal of $250 million over the next year. The job cuts alone are expected to save the company $100 million annually.
Even with the loss of the $1.4 billion in revenues generated by the stores slated to close, Johnston expects Albertson’s to grow through a combination of improved sales, new store openings and strategic acquisitions.
