Stop & Shop Parent Announces $345M In Losses From Strike
The parent company of Stop & Shop supermarkets lost $345 million because of a strike that lasted 11 days in April, the multinational corporation announced on Wednesday.
The Berkshire Eagle reports the losses were shared by company officials during an earnings call for parent company Koninklijke Ahold Delhaize N.V.
The company lost $224 million in direct sales, which was mitigated by $100 million in operating cash, and lost an additional $221 million during recovery sales after the strike ended.
About 31,000 unionized workers at Stop & Shop supermarkets in the Northeast ended the strike in early May after ratifying a new three-year contract with higher wages and continued access to affordable health care.
While the strike was ongoing, few customers crossed the picket lines. Those who did enter the supermarkets found reduced hours, as well as closed bakeries, delis, seafood and meat counters, shuttered gas stations and only self-checkout lanes open.