Winn-Dixie to Close 30 Stores, Reduce Staff in Cost-Cutting Plan

Winn-Dixie Stores (WINN) will close 30 stores and reduce staff as part of a multi-million dollar cost-cutting plan.

The company plans to eliminate 120 positions on top of those directly related to the store closure, Winn-Dixie said in a statement. The annualized savings will be in the range of $12 million to $17million and begin to be realized after the end of the first quarter of fiscal 2011.

"We continue to operate in a particularly difficult economic and retail environment in the Southeast," CEO Peter Lynch said. "The actions we are taking today will enable us to lower our cost structure."

The company will incur charges of $35 million to $50 million related to the cost-cutting plan. The charges will be incurred in the first quarter of 2011.

The 30 store locations to be closed will available on July 29. Winn-Dixie reaffirmed its guidance for fiscal 2010 earnings.

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Sabina

Ugh! The winn dixie we own in Florida is closing. We approached them numerous times to ask if they wanted to take less space and they turned us down. Wow - talk about biting the hand that was trying to help you for the past 5 years! Not impressed at all. So many employees will loose their jobs & local businesses will suffer even more.

July 29 2010 at 7:13 PM Report abuse +1 rate up rate down Reply
jkmabab

We have winn dixies in our city and they are great! they both have been recently renovated and have great prices

July 29 2010 at 5:56 PM Report abuse +1 rate up rate down Reply
spacificgrove

What's a Winn-Dixie?

July 29 2010 at 5:42 PM Report abuse rate up rate down Reply
Hi Catmom!

It is the death blow to this company. Reducing staffing to nothing will only close the stores faster. Good Bye Winn Dixie.

July 29 2010 at 3:09 PM Report abuse -1 rate up rate down Reply
thofer47

This does not surprise me. While I was living in Jefferson Parish, LA, there was a Winn-Dixie supermarket in my neighborhood with totally unreasonable prices. I preferred Rouse's, something that I do to this very day.

July 29 2010 at 2:57 PM Report abuse -1 rate up rate down Reply
southernstar007

Winn Dixie's prices have always been to high.It seems to me they should have had someone smart enough to realize this.

July 29 2010 at 2:30 PM Report abuse -1 rate up rate down Reply