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January 7, 2011
Team--
Today we’ve been delivering the very tough message to associates in a handful of our
Texas stores that their stores will close in mid to late February. We realize that in every
store we operate there are approximately 100 associates who all have lives outside of
Albertson’s; they have spouses, children, parents, car payments, rent, mortgages and
other financial obligations. The decision to close a store is not made lightly, because
we know the disrupting effect it can have on associates and their families.
On the other hand, if we hang on to stores that have consistently been losing money, it
can have a negative effect on ALL of our stores, because they have to make up for the
losses. For the well-being of the Company, we need to make these tough decisions,
because in the long run, it makes our Company more financially healthy.
When we close stores that are taking away from our bottom line rather than contributing
to it, we can use the money that was being spent to make up for their losses and invest
it into remodels and building new stores, all of which create new jobs and add more
hours that stores can offer associates. That also puts money back into the economy,
which is good for Albertson’s and the communities in which we operate. In fact, in
2010, we remodeled numerous stores, reinvigorating their teams and pleasing our
customers. Also, we opened two stores in Texas, and have another one planned for
Denham Springs, Louisiana this spring.
The teams in the closing stores all worked very hard to try to make the stores profitable,
but unfortunately it didn’t happen. It’s never just one reason that a store loses sales –
it’s a combination of factors. The communities around the stores may have changed in
the years that we’ve been there; evolving from being residential to more commercial. In
others, traffic patterns have changed and our store isn’t the most convenient for area
residents to get into. Whatever the reason, these stores just weren’t profitable. We will
make our best efforts to transfer associates from the closing stores to other locations,
wherever possible. Those associates who we are not able to place may be eligible for
severance benefits to assist them as they look for other employment.
We are trying to “right the ship”, so in the long run it benefits all of our associates and
our Company. Stay focused on our customers and on increasing sales, so we will all
have a positive and profitable 2011!
See you in the stores,
William