Supermarkets, like other types of companies in Garden State, have had a tough time of it during the past few years.
At least four big grocery stores in New Jersey will shut down in 2022.
Not long after the calendar turned to January, word came that a Middlesex County Acme shop would be closing on February 3.
There, “real estate problems” were given by Albertson’s, the parent company of the Acme chain, as the cause for the store’s closure.
Stop & Shop had already closed stores in Paramus on Route 17 and South Brunswick.’
Soon after, it was announced in The Asbury Park Press that Super Foodtown, a Monmouth County institution for more than four decades, will be closing its doors on Route 35 in Ocean Township.
Another Stop & Shop, this one on Raritan Avenue in Highland Park, Middlesex County, is closing down.
‘According to a corporate representative, “After a careful examination of the operating performance of our stores, we have made the tough decision to not extend our lease…”
However, this supermarket closure isn’t as sudden as the others.
This particular Stop & Shop will be open until Saturday, March 23.
Just What Factors Into a Grocery Store’s Decision to Shut Down?
When a grocery store shuts down, one issue is frequently raised. Everyone needs food at some point, so a store must be easy to run, right?
No, not quite.
Real estate/lease concerns, new stores opening nearby, and an increase in internet buying are just a few of the many elements that might affect a business’s success.
Not to mention the most recent setbacks, which include disruptions in the supply chain, difficulties in recruiting and retaining personnel, an uptick in retail theft, and, of course, inflation, which motivates consumers to seek out cost-cutting measures wherever possible.
Consider that if you sell a head of lettuce at your store for $2, the store across the street will sell it for $1.75, the shop down the street for $1.50, and the megastore on the corner for $1.
If you run a business that sells lettuce for $2, you’re either going to have to lower your prices to compete, which will reduce your profit, or you’re not going to sell very many of them.
Even the largest department stores might be targeted. When a Walmart shop isn’t making money, it’s closed, and even Amazon has had trouble with some physical stores.