retail news in context, analysis with attitude

Lone Star Funds announced yesterday that it will close 20 Bruno’s units, a decision that the new management says will reduce costs, improve profitability, and allow the company to focus on stronger, core stores.

The decision will leave Bruno’s with 148 units in Alabama, Florida, Georgia and Mississippi.

At the same time, the company announced that it will close nine of its stores in North Carolina, South Carolina, Georgia and Tennessee, which will leave the company with 278 units. The same rationale was cited by management.

Lone Star bought Bruno’s and Bi-Lo from Ahold earlier this year for $660 million.
KC's View:
Retrenchment is taking place everywhere, as everyone tries to figure out how to position and differentiate themselves.

Not easy, not pleasant, but almost always necessary.

In the end, though, the moves made toward differentiation will be far more important that the closings.