Dominick's plans to close 12 stores
Jan 13, 2004 12:00 PM, from staff and wire reports
Dominick's will close 12 underperforming grocery stores in the Chicago IL area. The eight suburban and four Chicago locations will close March 13, 2004.Safeway Inc, parent company of Dominick's, will record a $50 million to $55 million pre-tax charge for lease exit costs in its first quarter 2004 financial results related to these store closures. Elimination of operating losses from the closed stores will benefit earnings immediately and was already contemplated in the company's 2004 guidance.
Under terms of labor agreements with United Food and Commercial Workers union locals, most employees will have the opportunity to seek a position at another store. The company anticipates sales transfer from closed stores to other Dominick's locations in the same area, thereby creating additional employment opportunities in those stores. Dominick's will be working with employees to ease their transition.
