QFC to Close Two Seattle Stores, Blames City's New $4 Hazard Pay Law

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QFC will close two Seattle locations it describes as "underperforming," saying the decision was fueled in part by a recent city requirement that large grocery stores give workers an extra $4 an hour in pandemic-related hazard pay.

The two QFC stores — at 416 15th Ave. E. on Capitol Hill and at 8400 35th Ave. N.E. in Wedgwood — will remain open through April 24, the grocery chain announced Tuesday.

In a statement, QFC said the city's hazard pay requirement, which the City Council approved Jan. 25, added major costs at a time when grocery stores "operate on razor-thin profit margins in a very competitive landscape."

"When you factor in the increased costs of operating during COVID-19, coupled with consistent financial losses at these two locations, and this new extra pay mandate, it becomes impossible to operate a financially sustainable business," the statement said.

QFC is owned by Kroger, which also operates Fred Meyer stores in the Pacific Northwest. Kroger recently said it would also close two supermarkets in Southern California over local pay-raise rules.

At the time of its passage, Mayor Jenny Durkan had described Seattle's hazard pay policy as "a strong step forward in Seattle's recovery."

But the measure was strongly criticized by the grocery industry. On Feb. 3, two industry groups — the Northwest Grocery Association and the Washington Food Industry Association — filed lawsuits alleging the hazard-pay law is "invalid and unconstitutional."



QFC said store representatives would meet with employees "to help them with this transition and will comply with any contractual commitments and consider any transfer requests."

This is a developing story and will be updated.

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