People’s United Financial in Bridgeport, Conn., will close 140 in-store branches as it looks to address overlap within its footprint.
The $63 billion-asset company said Thursday that it will not renew its in-store branch contracts with Stop & Shop supermarkets in New York and Connecticut. It said the closings will take place “over several years.”
People’s United said that recent acquisitions had created a situation where about 80% of the Stop & Shop branches are within five miles of a traditional location. The company also said it plans to use some of the cost savings from the closures to invest in digital capabilities and to strengthen its traditional network.
People’s United, which said it is in continuing talks with Stop & Shop about the closings, has 84 locations in Connecticut and 56 in New York. The branches make up about a third of the company’s branches, based on June 30 data from the Federal Deposit Insurance Corp.
“I want to thank Stop & Shop for their continuous collaboration, partnership, and teamwork in what has been a successful and beneficial relationship for more than two decades,” Jack Barnes, People’s United’s chairman and CEO, said in a press release.
“Our focus remains on personalized relationships and balancing the needs of our customers, that will not change,” Barnes added.
The in-store branches hold about $5.8 billion of deposits, Mark Fitzgibbon, an analyst at Piper Sandler, wrote in a note to clients. He added that it costs People’s United $60 million to $70 million annually to rent and maintain the locations.
