As grocery discount chain Save-A-Lot moves into its new 162,000-square-foot headquarters in St. Ann, the retailer is laying off 80 headquarters employees, according to a report by the St. Louis Post-Dispatch. While it is paring down parts of its staff, Save-A-Lot has promised to keep 500 jobs and add 60 more in exchange for state tax credits and local property tax breaks.
“We can confirm that a limited number of corporate job reductions were announced today impacting about 1 percent of our company-wide workforce. The reductions are mostly managerial and administrative positions. They do not include store level team members nor do they impact operations at our 1,300 stores," the company said in a statement emailed to the St. Louis Business Journal.
The retailer also stated: “As a normal course of doing business, Save-A-Lot must look at how we are staffed to take our business to the next level. We’ve grown and expanded and will be looking to fill positions that are needed to continue our successful growth as a leading discount grocery chain. Those staff members who were affected by this re-structuring will be eligible to apply for open positions for which they are qualified.”
Save-A-Lot invested $8 million into its new headquarters, which it moved into in December.
The Business Journal reports that the St. Louis County Council rescinded a bill that would have provided subsidies to Save-A-Lot for moving into its new St. Ann headquarters, including Chapter 100 bonds and a 15-year tax abatement at 50 percent on personal property. In its place, St. Ann initiated these subsidies, pledging up to $3 million through the Missouri Works program and $85,000 through Skilled Workforce Missouri, under the conditions that the retailer would meet certain employment targets. The news source notes that it is “unclear how the layoffs will affect” St. Ann’s subsidies.
Deli Market News will continue to report on the grocery retail scene.