Loblaws to close 52 stores across Canada

Loblaws Companies Inc. is restructuring and preparing to close 52 unprofitable stores across Canada over the next year. 

The company today disclosed this information in its second quarter report.

"In the year since our acquisition of Shoppers Drug Mart, we have reviewed in detail all of our 2,300 locations,"  Bob Chant, Senior Vice President, Corporate Affairs and Communication tells SooToday.com. "Through the process we identified 52 consistently underperforming and unprofitable stores that we will close. The list includes gas bars, Joe Fresh standalone stores and select pharmacies and grocery stores."

Joe's Nofrills on Korah Road, Rome's Your Independent Grocer at the Cambrian Mall and the NG Cash and Carry are all members of the Loblaws family of stores in Sault Ste. Marie.

The company's quarterly report says it spent $54 million to restructure and prepare to close those 52 stores with $45 million going to the actual restructuring plan.

"Of this amount... $30 million for severance and lease termination costs and $15 million for asset impairments associated with these retail locations."

"The additional $9 million of restructuring charges related to store support restructuring activities."

Loblaws is not disclosing what stores or communities will be affected by it's decision to close 52 of it's locations over the next year.

"Out of respect for our many stakeholders, including colleagues, vendors, landlords and others, we are not disclosing specific locations at this time," Chant said.