Shaw’s Cuts 700 Store Workers

WEST BRIDGEWATER, Mass. — Supervalu [3] said it would lay off approximately 700 store-level workers at its troubled Shaw’s chain here, saying the move would reduce expenses and allow more efficient deployment of labor.

The layoffs, which were finalized on Nov. 3, occurred across the 169 Shaw’s and Star Market locations in New England, Shaw’s said.

“A decision of this nature is never easy, but after careful evaluation, it is unfortunately the necessary step for us to take to help improve our business, reduce expenses and reinvest in more customer-facing initiatives,” Mike Stigers, president of Shaw’s, said in a statement. “As we continue to look at the best ways to achieve success, we recognized an opportunity to align our workforce to more effectively serve the marketplace by scheduling team members more appropriately to serve customers at the times they shop. These changes will help us to compete more effectively in a rapidly changing marketplace.”

Read more: Supervalu Buyout Talk Heats Up [4]

As previously reported, Shaw’s parent company, Minneapolis-based Supervalu, is reviewing strategic alternatives including a potential sale.

Earlier this year, Supervalu cut about 2,200 to 2,500 store-level jobs in its Southern California Albertsons division and also eliminated 800 corporate positions.

Then in September the company said it would close 60 underperforming stores around the country, including 19 Albertsons in California and 22 Save-A-Lot stores. Those stores are set to close by February.

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