Homeland Acquisition Corp. (HAC) Inc., a major grocery chain in the southern United States, has announced the closure of five stores across Oklahoma and Georgia due to financial difficulties. This decision comes as the grocery industry faces increasing competition and shifting consumer preferences.
According to Fox Business, HAC Inc. will close four stores in Oklahoma under its Homeland, United Supermarkets, and Discount Foods banners by August 16. Additionally, a Piggly Wiggly location in Gordon, Georgia, will also shut its doors. These closures are part of the company’s strategy to streamline operations and focus on more profitable markets.
HAC Inc., headquartered in Oklahoma City, operates 80 grocery stores under various banners, including Food World, Piggly Wiggly, United, CashSaver, and Homeland. Homeland is the largest locally owned grocery chain in Oklahoma, with 36 locations statewide. The closures reflect broader challenges in the grocery sector, including rising costs and increased competition from mass merchandisers and specialty stores.
Christin King, HAC Inc.’s director of marketing and public relations, explained that the closures are aimed at reallocating resources to strengthen the company’s overall operations. "By closing these stores, we are able to focus on the greatest opportunities that strengthen other communities, grow communities, and to really strengthen our organization by focusing resources in those areas," King told The Oklahoman.
The grocery industry has been under pressure for years, with traditional supermarkets losing market share to mass merchandisers, club stores, and discount retailers. Arun Sundaram, vice president and senior equity analyst at CFRA Research, highlighted the impact of high inflation, changing consumer habits, and increased competition on the sector. These factors have forced companies like HAC Inc. to reassess their strategies and cut costs.
HAC Inc.’s decision mirrors similar moves by larger grocery chains. For example, Kroger recently announced plans to close 60 stores over the next 18 months as part of its efforts to improve efficiency. These closures underscore the challenges facing the grocery industry as it adapts to a rapidly changing landscape.
The closures at HAC Inc. are part of a larger trend affecting the grocery industry. Conventional supermarkets have struggled to compete with retail giants like Walmart, Costco, and Amazon, which offer a wide range of products at competitive prices. This has led to increased pressure on smaller chains to find ways to remain viable.
Sundaram noted that the competitive landscape has shifted significantly in recent years, with new entrants and evolving consumer preferences reshaping the market. The failed merger between Kroger and Albertsons, which was blocked by a federal judge in December 2024, further highlights the difficulties faced by traditional grocery chains. The merger, valued at $25 billion, was intended to create a stronger competitor to industry leaders but was deemed anti-competitive by the Federal Trade Commission.
Despite these challenges, some grocery chains are focusing on expansion in faster-growing markets. While Kroger is closing stores in some areas, it continues to open new locations in regions with higher growth potential. This dual approach reflects the need for grocery chains to balance cost-cutting measures with investments in future growth.
The closures of HAC Inc. stores will likely have a significant impact on the communities they serve. For many residents, these stores are not just places to shop but also important sources of employment and community engagement. The loss of a local grocery store can create challenges for residents, particularly in rural areas where alternative options may be limited.
HAC Inc.’s decision to focus on more profitable markets may help the company strengthen its financial position, but it also raises questions about the long-term viability of smaller grocery chains in an increasingly competitive industry. As consumers continue to shift toward online shopping and discount retailers, traditional supermarkets must find new ways to adapt and remain relevant.
The closures also highlight the broader economic challenges facing the retail sector. Rising costs, including labor and transportation expenses, have put additional pressure on grocery chains to streamline operations. At the same time, consumers are becoming more price-sensitive, further complicating the outlook for the industry.
HAC Inc.’s decision to close five stores reflects the difficult choices facing grocery chains in today’s market. By focusing on more profitable locations, the company hopes to strengthen its operations and better serve its remaining customers.
The company’s focus on reallocating resources to more promising markets may help it weather the current challenges, but it will need to continue adapting to stay competitive.
As the grocery industry evolves, chains like HAC Inc. will need to find innovative ways to meet the needs of their customers while managing costs and maintaining profitability.
