Published on: January 16, 2004Kash n' Karry, the Florida-based division of the Delhaize America, announced yesterday that it is closing 34 stores in central, eastern, and northern Florida by the end of February. The company will now focus its efforts on its core markets on the west coast of Florida, and will open or remodel 20 stores this year with a capital improvements budget that is 50 percent higher than last year.
In addition, Kash n' Karry reportedly has a three-year growth plan that will allow it to be more competitive in markets such as Tampa.
The move leaves Kash n' Karry with 103 stores. The closings impact some 1,500 employees.
A few of the stores being closed reportedly will be sold to other retailers. The vast majority, however, are just being shut down.
Sources outside the company told MNB that this retrenchment is perceived as a positive move that solidifies the company's operations, and that Kash n' Karry's new CEO, Shelley Broader, has made a "tremendous difference" on both morale and sales since moving to the Florida operation last year.
- KC's View:
- We've always been big fans of CEO Broader, and think that this seems like a prudent move to strengthen Kash n' Karry's competitive position. It’s always tough to amputate a limb like this, but sometimes it makes sense so the rest of the body can survive.