By Glenn Kaplan
Baltimore Watchdog Staff Writer
The parent company of Shoppers grocery stores does not have any plans in the present to close the store but an official from the union that represents employees believes it is only a matter of time before Shoppers will close.
Jonathan Williams, the spokesman for United Food and Commercial Workers, Local 400, said the union has no sense yet for when the sale of Shoppers may occur or when closings will start. But he said workers have been concerned for at least two years that their jobs may soon be gone.
“Unfortunately, that is our expectation,” he said. “We’ve been worried about this since 2017.”
Shoppers is a widely known grocery store in the Baltimore-Washington area. Pharmacies have started to close at 30 shoppers stores of the 46 in the region, according to the Winsight Grocery Business.
A company spokesperson said the company will not make any official announcements about Shoppers until the time is right.
Williams said Shoppers’ parent company, United Foods Inc., “wants to divest from all retail operations.”
The United Natural Foods Inc. stock has dropped over the past year. It’s closing price fell from $44.69 in May 2018 to $12.21 this month, according to the UNFI website.
The company’s stock had been fairly consistent between 2014 to 2015, the company said, with the closing price around $67. The stock dropped to $35.61 in May 2016 before rebounding to $41.55 in 2017.
Even though the stock has dropped over the past year, Williams said he does not believe this has played a big role in UNFI trying to sell Shoppers.
There might be other reasons why Shoppers might be sold.
According to the csimarket.com website, the grocery store industry has seen revenue declines in recent years.
According to the company’s financial reports, Shoppers’ operating costs have varied. In addition, a shortage of qualified labor could lead to potential increases in labor cost, reduced profits or a decreased ability to effectively serve customers.
According to it’s most recently filing with the Securities and Exchange Commission, UNFI currently operates 101 retail grocery stores that it acquired from Supervalu. The Supervalu business continues to supply over 5,500 store locations.