Economic challenges in retail
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76-year-old grocer closes stores amid struggles, shoppers frustrated
Yahoo Financeยท 2025-10-23 16:33
Core Insights - Economic challenges are impacting both businesses and consumers, leading to store closures and job losses [1][2] - The average net profit margin for food retailers is extremely low at 1.7%, making it difficult for supermarkets to remain profitable [3] - United Natural Food, Inc. (UNFI) is closing four Shoppers Food supermarkets in Maryland as part of a strategy to address financial difficulties [4][5] Business Challenges - Many supermarket retailers and convenience store chains have faced declining sales, higher operational costs, and increased tariffs, resulting in closures and bankruptcies [2][3] - Traditional supermarkets are struggling to compete with digital rivals, further exacerbating their financial challenges [3] UNFI's Actions - UNFI is closing a total of eight Shoppers stores this fall to reorganize its business and improve financial stability [4] - The company plans to support employees affected by the closures by facilitating transfers to other locations [6][8] - The recent closures in Maryland follow previous closures of four additional Shoppers stores in the state [9]