In a significant restructuring initiative, the federal government has decided Closure of Utility Stores underperforming across the country. This move aims to streamline operations and reduce financial losses through the Closure of Utility Stores with low revenues. So far, authorities have closed 446 outlets, and they are assessing the performance of others. The government plans most closures in rural areas, where stores have long relied on government subsidies. Officials have identified outlets with persistent losses for closure.
Although concerns about employee job security persist, officials have assured that no immediate layoffs will occur. However, they are still considering reassignments or job cuts for 3,800 affected workers.
The corporation is also exploring merging underperforming stores with profitable ones to optimize operations and reduce costs.
These closures follow the government’s August decision to end subsidies on essential items like sugar, flour, and cooking oil, which supported low-income households. While this restructuring seeks to improve the financial health of the Utility Stores Corporation, it raises concerns about the impact on rural communities that rely on affordable goods.
