Stop & Shop to Acquire Darien's Shaw's: A Developing Story

Pressure from more competitive grocers is pushing Shaw's shopping carts out of Connecticut.

Owner of the supermarket chain, SuperValu Inc. of Minneapolis, announced Friday its "difficult decision" to sell all 18 Connecticut Shaw's stores this spring, marking the end of a 15-year empire in the Nutmeg state.

At the peak of the chain's success, Supervalu saw Shaw's customers cruising the aisles at 26 Connecticut locations; but fierce price competition from grocers like Stop & Shop and the newer Whole Foods has moved the company to sell less profitable stores. Last year, Shaw's closed in both Bristol and Shelton.

All 18 remaining Connecticut shops, including Darien's own location in the Goodwives Shopping Center, are due to close within the next few months.

"While these decisions are always difficult, given the impact on associates and customers, they ultimately allow us to operate more efficiently and effectively within a highly competitive retail environment," said Pete Van Helden, SuperValu executive vice president of retail operations.

The company has reached agreements with Wakefern, operators of ShopRite and PriceRite for the sale of 11 Shaw's stores. Stop & Shop will pick up an additional five, including the Darien store on Old King's Highway North. According to a company spokeswoman, Supervalu continues to seek buyers for the two remaining Connecticut stores.

With the transaction, grocer giant Stop & Shop boasts 89 Connecticut shops. The company says it will continue to operate all 89 and plans to rehire some of the 2,200 employees fated to lose their jobs when Shaw's closes its doors this spring.

Noroton Heights Stop & Shop Manager Bruce Cook said Friday was the first he had heard of the move.

"I don't know anything about this," he said. "I hadn't heard anything about it when they made the announcement."

Cook said he has no plans of closing.

Major change at the Stop & Shop property on Heights Road has long been considered. Landlord and developer Thomas Golden's plans for a retail-cum-housing development at the Noroton Heights location are currently on file at Darien Planning & Zoning.

Golden has since withdrawn his application, and he will have to resubmit his project for P&Z approval should he decide to now move forward with the plan, said First Selectman Dave Campbell.

"This might change things," said Campbell, who described the development as a shopping center of sorts with "retail on the bottom and apartments on top."

A number of those apartments would be affordable, in accordance inclusionary zoning regulations which require new multifamily developments to designate a number of units below market rate.

Flood mitigation is also part of Golden's plan, said Cambpell. Stop & Shop's location on Heights Road is particularly prone to flash flooding.

Golden could not be reached for comment at the time of this report.

SuperValu has yet to disclose details of the transaction.

Shaw's continues to operate elsewhere in New England, at over 176 stores in five states.