The 90-year-old grocery retailer, identified by ticker WFM, has confirmed the closure of 24 underperforming locations nationwide, citing ongoing operational challenges and shifting consumer demand. The move follows previous restructuring efforts and signals continued pressure in the traditional grocery sector.
- 24 stores to close across 13 U.S. states within 90 days
- Expected annual cost savings of $28 million
- Same-store sales declined 6.3% in the last fiscal quarter
- Operating margins fell to 7.9% from 9.2% year-over-year
- WFM shares dropped 3.7% on announcement
- Affected locations face competition from TGT and CLF
The 90-year-old grocery chain, operating under the ticker WFM, has officially announced the closure of 24 stores across multiple U.S. markets, effective within the next 90 days. The closures will affect locations primarily in underperforming markets and are part of a broader strategy to streamline operations and reduce annual overhead costs by an estimated $28 million. The company cited rising supply chain expenses, increased competition from discount retailers, and evolving shopping habits as key drivers behind the decision. The closures come after WFM reported a 6.3% decline in same-store sales during the last fiscal quarter, with comparable store traffic down 4.8% year-over-year. Despite a modest 2.1% revenue increase in the same period, operating margins contracted to 7.9%, below the 9.2% recorded in the prior year. The company also noted that 18 of the closed stores were in markets where it faces strong competition from TGT and CLF, which have expanded their grocery offerings in recent years. Market reaction was immediate: WFM shares dropped 3.7% in early trading, while TGT and CLF saw slight gains of 0.6% and 0.9%, respectively, as investors interpreted the closures as a sign of intensified competition in the grocery segment. Analysts suggest that the restructuring may help stabilize WFM’s long-term profitability, but note that further store rationalizations could be on the horizon if consumer trends continue to shift toward online delivery and discount formats. The closures will affect approximately 310 full- and part-time employees, with the company offering severance packages and career transition support. Affected locations span 13 states, including Texas, Illinois, and Ohio, with no immediate plans to reopen any of the sites.