To avoid shutting down an unprofitable store in Southeast Washington, Giant Food will check receipts and remove products.
with just two aisles of such “low-value” products as Band-Aids, snacks and batteries, while the rest is kept behind a counter and must be ordered digitally.Grocers like Giant run on slim profit margins, so higher costs for operations, labor and rent can create outsize pressure. This has forced some retailers to shut down stores in large urban centers.
This meant more changes were needed, Kress said. Giant’s Alabama Avenue store will soon remove high-theft merchandise like Tide laundry detergent, Schick razor blades, Dove soap, Degree deodorant and Pantene shampoo to curb losses. “We have no other choice,” Diane Hicks, senior vice president of operations said Thursday during a walk-through with officials from the D.C. mayor’s office, the Metropolitan police and
fire departments, and Chamber of Commerce. She added that other nearby stores have locked up all their product on those aisles or removed them altogether. “I’ve been leaving it out for our customers and unfortunately it just forces all the crime to come to us.” Those products are easy to steal or have higher resale value, Kress said. Instead, customers can buy Giant’s private label CareOne, which have low resale value.“I don’t want to do this — I’d like to sell [those products],” he said. “But the reality is that Tide is not a profitable item in this store … In many instances people stock the product and within two hours it’s gone, so it’s not on the shelf anyway.
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