Jacksonville FL-based supermarket chain Winn-Dixie Stores Inc plans to close 30 non-remodeled, underperforming stores. The company also will consolidate its four operating regions into three and reduce its workforce at the field and corporate support levels.
Winn-Dixie also reaffirmed its guidance for fiscal 2010, which the firm believes it achieved through effective management of its promotional activity and cost control, despite a deteriorating sales environment in the fourth quarter. Management plans to hold an investor conference call August 31, 2010, to discuss its financial results for fiscal 2010 and provide guidance for fiscal 2011.
Peter Lynch, Winn-Dixie chairman, chief executive officer, and president, said, “We continue to operate in a particularly difficult economic and retail environment in the Southeast. To respond to these business and economic conditions, we have thoroughly reviewed our retail operations and support structure and have decided to exit certain retail locations and reduce our corporate and field support staffs. We sincerely regret the impact this will have on some of our associates, and we will make every effort to ensure these associates can pursue other open positions or have a smooth and respectful transition.”
The company also plans to eliminate about 120 positions in its corporate and field support staffs. It expects to achieve annualized savings in the range of $12 to $17 million as a result of these actions, which should begin to be realized after the end of the first quarter of fiscal 2011. The store closures and position eliminations are expected to be completed by September 22, 2010, the end of the first quarter of fiscal 2011.
A listing of the 30 store locations to be closed will be available beginning July 29, 2010, at www.winndixie.com.
Winn-Dixie operates 514 retail grocery locations, including more than 400 in-store pharmacies, in Florida, Alabama, Louisiana, Georgia, and Mississippi.
