Brookshire's to close three North Texas stores, cites 'fierce competition'

WYLIE - Three North Texas Brookshire’s stores - one each in Wylie, Ennis and Forest Hill - will close in late July, the Tyler Paper has learned.

In a memo to Brookshire’s management, Brad Brookshire said the company must ensure that it has the right stores in the right markets and locations.“Our company continues to look for opportunities to grow and expand our retail footprint,” it said. “We are continually evaluation store results and future potential. And as such, we made the tough but prudent decision earlier this week to close three of our North Texas stores in late July.”

The memo was dated Thursday.

Brookshire, the company’s CEO, cited pressure on the industry from all sides.

 

“Competition is more fierce than it has ever been,” he said. “Amazon.com just announced the purchase of Whole Foods for $13.7 billion, which will have enormous implicated for the retail grocery industry. The German chains Aldi and Lidl are expanding in the U.S., and Wal-Mart, drugstore chains, dollar stores, restaurants, online markets, and others are all competing for food dollars. Please continue to support our company and to serve our customers better than anyone.”

A spokesperson for Brookshire Grocery Company confirmed the memo late Friday.

“This week Brookshire Grocery Co. conducted the grand opening of a new Super 1 Foods store in Scott, Louisiana,” a statement reads. “Another new store is under construction in south Louisiana and will open in late 2017. As part of standard business practices, the company continually reviews stores’ results and future potential. At times, the business decision is made to close under-performing locations. Earlier this week, Brookshire’s announced plans to close three such stores in the Dallas-Fort Worth market in late July, affecting locations in Ennis, Wylie and Forest Hill. The company continues to focus on growth and has increased its retail footprint substantially since August, when it opened 25 Spring Market stores in Texas and Louisiana. Closing these unsustainable stores will allow the company to reinvest in higher-potential markets as it continues its expansion efforts. BGC employs 13,650 people and operates 178 stores in Texas, Louisiana and Arkansas.”

In recent years, Brookshire’s has undergone a number of changes. In October 2015, Brookshire’s announced it was exploring a sale to an undisclosed buyer. But by the end of November, it said a sale was “off the table,” as it sought to streamline its operations.

In 2016, it announced it would sell off its bakery division (though in-store bakeries continued to operate), and open those 25 smaller Spring Market stores in old Wal-Mart Express locations.

Then in February 2017, it sold its dairy operation to Missouri-based Hiland Dairy for an undisclosed sum.

At the same time, competition grew more intense in the industry. Locally, Aldi opened its first East Texas store in November 2016, and announced it could add three to five more to the city.

Aldi focuses on selling the most-needed items, primarily under its exclusive brand.

And Lidl, which has a similar business model with low prices and limited selection, opened its first 10 Americans stores last week, primarily on the East Coast.

This story is developing and will be updated.

 

© 2017 KYTX-TV


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