Saturday, January 15, 2011

Albertsons will close more Texas stores, including 5 in Dallas-Fort Worth

Albertsons LLC plans to close seven unprofitable Texas stores next month, including five locations in the Dallas area as the North Texas grocery market continues to be one of the most competitive in the nation.

Liquidation sales start Wednesday, and the company expects the stores in Carrollton, Garland, Richardson , Plano and Southlake to close around Feb. 20.

"Over the last several years, we have put our best efforts into repositioning these stores to better compete in the market place. Unfortunately, we haven't been able to do so," said Albertsons spokeswoman Christine Wilcox

North Texas has more Walmart Supercenters and Neighborhood Market stores than any major market and last year Aldi entered the region with 29 stores. The no-frills, small store grocer plans to add 12 additional stores this year and has inspired 99 cents milk wars in recent months.

Kroger has been aggressive, opening three of its 123,000-square-foot Marketplace stores and has several other stores in the works including one near downtown Dallas. Last year Tom Thumb opened its first new store in some time in Rockwall and built a new store in Dallas on the site of its former Simon David store.

Target, which was already a major grocer here with its SuperTarget stores, has remodeled 15 of its local Target stores to include more food aisles.

Still, the area continues to attract new entrants in recent years including Lubbock based Market Street, Arizona-based Sprouts Farmers Market, and two chains from Colorado, Natural Grocers and Sunflower Farmers Market.

San Antonio-based H.E. Butt Grocers, which operates Central Market stores here, has circled the area for several years. It opened an H-E-B store in Burleson last year.

In November, Albertsons reopened a store in Watauga after other grocers also closed in the area.

But mostly the chain has been contracting. Even after the closings, the Idaho-based supermarket chain will operate 80 supermarkets in Texas, including 54 in the Dallas-Fort Worth.

Wal-Mart Stores Inc. has the largest market share in the area and Kroger is No. 2.

Albertsons is identifying positions for as many store staffers as possible.

"Those we are not able to place may be eligible for severance benefits," Wilcox said. The seven stores employ a total of 550 people.

Albertsons will be marketing the leases to prospective tenants, Wilcox said. The Tyler and San Angelo store leases expire soon.

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