Delhaize Group, which owns the Food Lion supermarket chain, plans to close more than 100 unprofitable stores across the southeastern United States and cut nearly 5,000 jobs amid slumping sales. The food retailer also will shutter the Bloom brand, a higher end sister supermarket chain.
Delhaize has lost 26 percent of its value in the past year, according to Bloomberg. Over the next month, the company plans to close 113 struggling stores mostly in Florida, Georgia, South Carolina and Tennessee, where the company has low penetration.
Pierre-Olivier Beckers, CEO of Delhaize Group, said in a press release that the company was grappling with tight consumer spending and increased competition. The store closings will allow it to focus on better-performing stores where the chain has greater market share, he said.