Grocer Tom Thumb Closing Stores in North Texas
Introduction to Store Closures
Grocer Tom Thumb is closing another store in North Texas after recently revealing it would shut down an Allen site.
The company plans to shutter the location in Plano at 2200 E. 14th St., according to a letter that was provided by the Texas Workforce Commission. The move will affect 75 associates. A sister brand, Randalls, is also set to shut down a site in Houston.
Reasons Behind Store Closures
Last month, Tom Thumb, which is part of Albertsons Cos., said it was closing an Allen store at 900 W. McDermott Drive in July.
The company is grappling with growing competition as many retailers invest in the Lone Star State amid population growth and a dynamic business community. Industry players such as Walmart, H-E-B, Target and others are opening locations or updating older ones as they seek to attract local shoppers.
D-FW Retail News
D-FW Retail News
Related:Dallas-area Sam’s Club turns local store into its very own ‘innovation hub’
Mergers and Expansions
Albertsons and larger rival Kroger had pursued a merger until the two companies late last year terminated the deal after the U.S. District Court in Oregon and the King County Superior Court for the State of Washington blocked the tie-up.
Soon after that, North Texans would learn that Tom Thumb pulled back on a planned store for the Red Bird area in Dallas, which was set to open sometime this year.
Yet last year, the company opened three Tom Thumb stores around North Texas and broke ground on three new sites to open in 2025 and 2026.
Affected Employees and Store Closures
There are 75 associates currently assigned to Tom Thumb in Plano, and the site is set to close July 26, according to the letter, adding that it aims to place as many employees as possible at other sites.
The company plans to serve customers at other locations in Plano and the surrounding area, the letter said. The Houston site, which has more than 100 associates, is set to close next month.
Conclusion
In conclusion, Tom Thumb is closing stores in North Texas due to growing competition and failed mergers. The company is working to place affected employees at other sites and will continue to serve customers at other locations.
Frequently Asked Questions
Q: Why is Tom Thumb closing stores in North Texas?
A: Tom Thumb is closing stores in North Texas due to growing competition from other retailers and a failed merger with Kroger.
Q: How many employees will be affected by the store closures?
A: 75 associates will be affected by the closure of the Plano store, and over 100 associates will be affected by the closure of the Houston store.
Q: What will happen to the employees affected by the store closures?
A: Tom Thumb aims to place as many employees as possible at other sites.
Q: Will Tom Thumb continue to serve customers in North Texas?
A: Yes, Tom Thumb will continue to serve customers at other locations in Plano and the surrounding area.
