Winn-Dixie to downsize
US supermarket group cutting back store numbers
US supermarket operator Winn-Dixie is to close more than a third of its stores in a bid to survive bankcruptcy.
The company, which has filed for Chapter 11 bankruptcy protection, will close 326 of its 913 stores and cut 22,000 jobs from a total of 78,000.
The plan will see Winn-Dixie cease operations entirely in four US states, Tennessee, Virginia and North and South Carolina. The company will also close stores in the five remaining states where it operates – Florida, Georgia, Alabama, Mississippi and Louisiana.
The company said the the reduced store numbers will reduce revenue to $7.5bn this year from $10bn. Winn-Dixie has seen customer numbers fall as rivals such as Wal-Mart have moved into its trading areas.
Peter Lynch, president and chief executive, said: “Creating a smaller, but more profitable store base will best position Winn-Dixie for long-term financial health and a successful future. We will be focusing our resources on markets where Winn-Dixie has a strong presence and there are compelling opportunities.
“This will allow us to build on our strengths and take advantage of the considerable potential we see to improve the shopping experience for our customers. Already, we have made significant strides. The steps announced today will help us to continue our progress as we strive to make Winn-Dixie a stronger company, better able to compete in the marketplace with a strong foundation for the future.”
