Winn-Dixie to Close 30 Underperforming Stores, Implement Major Cuts

Company will consolidate four operating regions into three while trimming its staff at both field and corporate support levels.

July 29, 2010

JACKSONVILLE, FL - Winn-Dixie Stores, Inc. announced earlier this week that it will close 30 underperforming stores while consolidating its four operating regions into three and trimming its staff at both field and corporate support levels.

"We continue to operate in a particularly difficult economic and retail environment in the Southeast," said Winn-Dixie Chairman, CEO, and President, Peter Lynch. "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 will cut approximately 120 positions in its corporate and field support staffs as well as the positions connected with its store closures, a reduction that it said would save the company up to $17 million a year, putting it in stronger financial footing.

"The actions we are taking today will enable us to lower our cost structure, improve efficiency, and build the right foundation for our business now and in the future. With nearly half of our store base already remodeled, and with plans in place for additional remodels and new store openings, we are confident we will continue making significant progress with our 'Fresh & Local?? strategy and business initiatives," Lynch said.

The store closings are expected to be completed by the end of September.
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