No matter who you are, you've probably watched helplessly as some of your favorite businesses
closed their doors for good.
If you're a fan of any of these places, you may want to shop while you still can, because
2020 is showing some serious roadblocks coming their way.
If you aren't from the Chicago area, chances are you haven't heard of Standard Market Grocery.
The chef-driven market first opened in 2011 in Westmont, Illinois.
Then, in 2014 they expanded to a second location in Naperville.
Customers enjoyed the new location for five years until the company decided that, quote,
"business conditions specific to that location" made it time for them to close down in 2019.
Little did they know that decision would cause more than disappointment from customers.
In 2019, an employee from the Naperville location filed a class action lawsuit shortly after
the store's March 30 closing date.
The lawsuit states that Standard Market Grocery, quote, "unlawfully collected, used and stored
sensitive biometric data."
Don't worry, you're not the only one scratching your head right now.
Biometric data in this case are the employee's fingerprints.
Fingerprints were used at the store for employees to clock in and out each day.
Apparently, Standard Market Grocery is in breach of the Biometric Information Privacy
Act for not properly informing employees in writing what would happen to their fingerprints
once they leave the company.
In addition, the lawsuit is also slamming Standard Market for giving employees only
three days notice of the store closing.
A notice that by law should have been at least 60 days.
It looks like Standard Market is going to have a lot on their plate in 2020.
Kroger may be the largest traditional grocery store, but with competition from larger retailers
like Walmart and Amazon, the company is starting to feel the heat.
To stay ahead of the competition, Kroger started a restructuring plan in 2017 to help the Cincinnati-based
chain reduce prices and increase in-store technology.
Though it all sounds positive, the strategy has come at a high cost.
Heading into 2020, Kroger is looking to cut hundreds of management jobs across their portfolio.
The Cincinnati Enquirer says that although Kroger officials wouldn't get down and dirty
with the details, they did reveal that all 22 of Kroger's divisions across 35 states
are closely examining management positions.
These management jobs are well-paid and not union positions, which means they're easy to cut.
With an extensive marketing campaign launching in 2020 surrounding their new "Fresh for Everyone"
slogan, it shouldn't be a secret where these salaries will be allocated.
"We believe in fresh… for everyone."
Kroger should tread lightly though, as the United Food and Commercial Workers have already
started the threat of possible strikes.
A move that in previous years has cost Kroger $1.5 billion in sales.
That's not something Kroger needs right as they are about to see their restock efforts
pay off...
hopefully.
When Southeastern Grocers pulled itself out of bankruptcy at the end of 2018, they had a plan.
CEO Anthony Hucker said the company would focus on updating its existing stores.
That same year they kept their promise, and by October of that year, 79 of Winn-Dixie's
377 stores had been remodeled.
Fast forward to 2019 and customers are still experiencing the new and improved Winn-Dixie.
From an expanded selection of fruits and vegetables, an impressive bakery selection, and wider
variety of beer and wine, it seems that Winn-Dixie is on track for success in 2020, but you can't
always judge a book by its cover.
Grocery Dive says that Southeastern Grocers is banking on the stores' updates to help
improve sales, but with larger retailers doing the same, that's a lot of pressure to put
on the chain.
Especially when its locations are saturated with competitors like Aldi, Publix, and Walmart.
Early in 2019, Southeastern Grocers was still closing stores, and Florida said goodbye to
seven Winn-Dixie locations.
Though it's much less than the 100 closed in 2018, it still means the stores are underperforming.
Unless Winn-Dixie's parent company can find a way to emerge from the shadows of their
larger competitors, it may have a hard time keeping up in 2020.
In April of 2019, Stop & Shop faced off against thousands of its employees.
Unhappy with contract negotiations, Stop & Shop employees walked off the job and participated
in an 11-day strike.
"The union representing the works says the supermarket chain is demanding unreasonable
cuts during contract negotiations."
Burt Flickinger, managing director of Strategic Resource Group, said he had, quote, "never
seen more effective picketing."
About 90 to 95 percent of customers stayed away from the Massachusetts-based store, and
not all of them came back when it was over.
Sales lost during the strike and recovery period totaled $345 million and the grocery
chain's parent company, Ahold Delhaize, was still seeing remnants of the strike throughout
the remainder of the year.
The loss of sales doesn't seem to have stopped Ahold Delhaize from expanding its footprint.
They just announced a $480 million investment to bring a distribution center to Connecticut.
It's a move they say will save them about a million dollars a year, but unless they
can keep their employees happy, that cost savings won't do much good.
Check out one of our newest videos right here!
Plus, even more Mashed videos about your favorite grocery stores are coming soon.
Subscribe to our YouTube channel and hit the bell so you don't miss a single one.