Friday, January 18, 2013

Three Bottom Dollar stores to close in PA

Delhaize America announced yesterday it would close Bottom Dollar food stores in North Wales, Chalfont and Reading, PA. The company is also closing 33 Sweetbay stores in Florida and eight Food Lion locations in North Carolina, South Carolina and Virginia. All the stores are expected to close by mid-February.

Bottom Dollar entered the Philadelphia market in October 2010 and quickly expanded. According to the company's website, there are now 37 stores operating in southeastern PA and southern NJ. Last year Bottom Dollar expanded to western PA and eastern Ohio, where it now has 16 stores.

Sweetbay, whose first store opened in Florida in 2004 and which currently has 105 stores throughout the state, will layoff approximately 2,000 employees. According to Delhaize Group CFO Pierre Bouchut, the elimination of the 33 money-losing stores should provide a $40 million benefit to underlying profits annually. He added that he expects Sweetbay to be profitable in 2013.

3 comments:

  1. This financial situation with BD parent, Delhaize, might also jeopardize the disposition of many soon-to-close Acme markets, which would have been possibly good sites for operators such as BD. Usually Aldi, builds from the ground up on virgin land.

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  2. With The Sweetbay closings in Fl it might be an opportune time for Bottom Dollar to expand into Florida. The most definitely compete with Walmart and Shop Rite, Acme, etc. in NJ. I believe they'd do very well in FL where the only low price alternative is Walmart.

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  3. Mr. Goodman, might you be able to check-out speculation, that already several r.e. developers have submitted bids to acquire an Acme Market site near the Italian Market neighborhood in South Philly, for the purpose of building town houses or condos for young Center City professionals? That Acme is currently underperforming.

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