Three under-performing Los Angeles-based Ralphs and Food 4 Less stores will close today announced the closure of three underperforming stores in Los Angeles, after the recent passing of the “Hero Pay” mandate for frontline workers by the Los Angeles City Council.
The stores said in a statement that the mandate will “add an additional $20 million in operating costs over the next 120 days, making it financially unsustainable to continue operating underperforming locations.”
The following three affected store locations will remain open and operational for the next 60 days, closing on May 15, 2021.
Ralphs - 9616 West Pico Blvd.
Ralphs - 3300 West Slauson Ave.
Food 4 Less - 5420 West Sunset Blvd.
“Ralphs and Food 4 Less provide affordable, fresh groceries, good and stable jobs with growth opportunities to thousands of Los Angeles residents, and proudly supports local community organizations across the city. Unfortunately, the Los Angeles City Council disregarded their own Economic Impact Report by not considering that grocery stores – even in a pandemic – operate on razor-thin profit margins in a very competitive landscape. It’s never our desire to close a store, but when you factor in the increased costs of operating during COVID-19, consistent financial losses at these three locations, and an extra pay mandate that will cost nearly $20 million over the next 120 days, it becomes impossible to operate these three stores,” said a company spokesperson
“We are focused on and stand ready to work with state and local governments to prioritize vaccine distribution to frontline workers, like our associates, as quickly as possible. This week in Los Angeles we are hosting three vaccine clinics for associates, with additional events to be hosted in the following weeks. Prioritizing vaccinations – not arbitrary mandates for extra pay – is what will keep frontline workers protected,” continued the company spokesperson.