In a bid to cut costs, Winn-Dixie Stores Inc. intends to close 30 stores, eliminate 120 field and corporate staff positions and reduce its number of operating regions from four to three.
The company also reaffirmed its guidance for fiscal 2010, despite deteriorating sales in the fourth quarter.
JACKSONVILLE, Fla. — Winn-Dixie Stores Inc. plans to close 30 underperforming stores, consolidate its operating regions and eliminate some jobs in a bid to cut costs.
Winn-Dixie Stores Inc. plans to close 30 underperforming stores, consolidate its operating regions and eliminate some jobs in a bid to cut costs.
The supermarket operator expects the moves to yield annual savings of $12 million to $17 million a year.
"We continue to operate in a particularly difficult economic and retail environment in the Southeast," said chairman, CEO and president Peter Lynch. "To respond to these business and economic conditions, we have thoroughly reviewed our retail operations and support structure and have decided to exit certain retail locations and reduce our corporate and field support staffs."
Lynch said the closures will involve weaker-performing stores that have not been remodeled, and are expected to be completed by September 22. The planned elimination of about 120 jobs, in addition to the positions at the shuttered stores, is also due to be completed by that date, which is the end of Winn-Dixie’s first quarter of fiscal 2011. The company also plans to consolidate its four operating regions into three.
Winn-Dixie expects to incur charges of $35 million to $50 million during to first quarter in connection with these changes.
The company has reaffirmed its guidance for fiscal 2010, saying that cost controls and the effective management of promotions have allowed it to compensate for a sales environment that deteriorated in the fourth quarter.