Top Supermarket Chain Shutting Stores

NEW YORK–Albertson’s said Wednesday that it is closing approximately 165 stores in 25 states. The No. 2 supermarket retailer in America also said is eliminating up to 20% of managerial and administrative jobs above store level. Specific stores and jobs were not disclosed.

“We are becoming increasingly confident that over the next year we will achieve our expense reduction goal of $250 million,” Larry Johnston, Albertson’s chairman and CEO, said. “The jobs we are eliminating in corporate management and administrative roles alone should yield $100 million in annual benefits.” He said the Boise, Idaho-based company still expects to reach $38 billion in annual revenues this fiscal year.

The move comes at a time when No. 1 supermarket chain Kroger also is restructuring its operations. Both retailers are feeling pressure from Wal-Mart Stores, which is expanding its Supercenter format nationwide, featuring 40,000-square-foot grocery departments, as well as its stand-alone 13,000 square foot grocery-only Neighborhood Markets.