The closure of 21 People's United Bank branches in Stop & Shop locations across Connecticut has left the Massachusetts-based grocery chain with a decision to make regarding what is the best use for the now-empty space.
"It is still too early in the process to provide specific details," O'Brien said.
Buffalo-based M&T Bank elected to keep 27 Stop & Shop branches open when it acquired People's United. The space for those branches is leased through January 2026, according to O'Brien.
Burt Flickinger, managing director of the New York City-based retail consulting firm Strategic Resource, said Stop & Shop officials would be wise to consider filling the spaces People's United vacated in its stores with another bank.
"Having a bank in a supermarket is an important driver of customer traffic," Flickinger said.
If Stop & Shop is willing to bring in another financial institution to fill the former People's United locations, it could be an attractive move for the right bank, said John Carusone, president of the Bank Analysis Center, a Hartford-based industry consultant.
"Even with the high cost of that leased space, any bank that opened a supermarket branch is going to make money," Carusone said, adding that a typical supermarket bank branch takes up between 200 and 300 square feet. "Providing customers with that level of convenience is a good strategy."
But because the former People's United branches that closed are spread across the state rather that concentrated in one geographic area, Carusone said "it's going to be problematic to find another bank willing to invest in opening supermarket branches."
"You're talking about signing a five-year lease with hefty cancelation clauses," he said. "Only a large institution would look at this as business opportunity."
Both Carusone and Flickinger said Stamford-based Webster Bank would a logical candidate to move into those Stop & Shop locations that People's United vacated. But Alice Ferreira, a spokeswoman for the bank, said Webster has no supermarket branches and no immediate plans to open any.
"Webster has a strong presence in Connecticut with close to 100 banking centers," Ferreira said. "Our current banking centers remain an important component in serving consumers and businesses, and our commitment to the communities we serve remains strong. Consistent with industry trends, Webster Bank has increased its focus on digital banking channels while balancing physical locations, driven by increased usage of online and mobile banking."
Another bank that could be a candidate to open branches in Stop & Shop locations is TD Bank, Flickinger said. TD Bank is open seven days a week, which would fit in well the schedule of a supermarket, he said.
One bank that has supermarket branches in Stop & Shop locations outside of Connecticut is Citizens Bank. The bank has branches in 25 Stop & Shop locations in Rhode Island and at 101 of the supermarket's locations in Massachusetts.
Citizens Bank has 33 branches in Connecticut.
If Stop & Shop elects not to fill the former bank branch locations with another financial institution, Flickinger said the spaces could be used for a vision center retailer.
luther.turmelle@hearstmediact.com
"Stop" - Google News
October 13, 2022 at 04:11PM
https://ift.tt/rpgUxl2
Stop & Shop weighs how to fill closed CT supermarket bank branches - CT Insider
"Stop" - Google News
https://ift.tt/qmNYZOs
https://ift.tt/nRCoMVl
Bagikan Berita Ini
0 Response to "Stop & Shop weighs how to fill closed CT supermarket bank branches - CT Insider"
Post a Comment