Cape Fred's store to close by end of May

After 19 years in business in Cape Girardeau, Fred’s will close by the end of May.

The discount merchandise store, at 121 S. Sprigg St., shares a building with Save-A-Lot grocery store and is among 159 Fred’s stores the Memphis, Tennessee-based discount retailer will close in the coming weeks, according to published reports.

In addition to the Cape Girardeau location, the Fred’s store in Poplar Bluff is slated for closure, while the chain’s other Missouri retail outlets — in Doniphan, East Prairie, Hayti and Portageville — will remain open.

The stores that are closing are mostly in Alabama, Georgia, Mississippi and Tennessee and represent approximately 29% of the chain’s 557 stores.

Company CEO Joseph Anto released a closure statement that said, in part, “we have made the decision to rationalize our footprint by closing underperforming stores, with a particular focus on locations with shorter duration leases. Most of these stores have near-term lease expirations and limited remaining lease obligations.”

The company’s corporate office did not respond to requests from the Southeast Missourian for additional information, although news reports have stated the closures are part of the company’s efforts to reduce loses and maximize shareholder value.

The Fred’s and Save-A-Lot building in Cape Girardeau is owned by J & B Foods of Sikeston, Missouri, which confirmed Fred’s current lease either has or is about to expire. However, a spokeswoman for J & B Foods, who asked not to be identified, said the company has not received word about when Fred’s will vacate the property.

“We will probably be looking for another tenant soon after that,” she said, adding Save-A-Lot will continue to operate at the location.

Cape Girardeau Area Chamber of Commerce president and CEO John Mehner said the closure of Fred’s is disappointing but not surprising.

“Nationally speaking, the retailing picture is interesting with some sectors that are struggling and others doing well. There are a lot of national retailers (such as Fred’s) who are redefining who they are.”

“Fred’s Super Dollar Store” opened in May 2000 at its present location, which was formerly home to Del-Farm National and Schnuck’s grocery stores. At that time, the Fred’s outlet in Cape Girardeau was one of about 320 stores in the chain.

Fred’s employees in Cape Girardeau say they haven’t been told when the store will close, only that it will be by the end of May. The local store has fewer than a dozen full- or part-time employees. The number of employees affected by all 159 store closures has not been made public by the company, although it has indicated it will “make every effort to transition impacted associates to other stores where possible.”

“It’s sad to see it close,” said Ray McAfee, 88, who said he has been working part time at the Cape Girardeau Fred’s for five or six years. “The people who are here are like family.”

jwolz@semissourian.com

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