Supervalu Inc. plans to close about 60 stores this fiscal year, including eight Albertsons stores in the Intermountain West region, it announced Wednesday. The company said most of the stores are expected to close by Dec. 1.
A spokesman for Supervalu said the eight stores in the Intermountain West are in Washington and Oregon. However, the company is not yet announcing the locations of six other grocery stores it plans to close because of ongoing contract discussions.
The company plans to close stores that are underperforming or otherwise don't match Supervalu's strategy, including 38 grocery stores and 22 Save-A-Lot stores.
These decisions are never easy because of the impact a store closure has on our team members, our customers, and our communities, said Wayne Sales, Supervalu's president, chief executive officer and chairman, in a press release. Todays announcement reflects our commitment to move with a greater sense of urgency to reduce costs and improve shareholder value.
Supervalu estimated that closing the stores will generate between $80 million and $90 million in cash over the next three years. The company owns the real estate for about one-third of the grocery stores being closed.
Outside of the Intermountain West, the company will close 19 Albertsons stores in southern California, four ACME stores and one Jewel-Osco store.