Kroger to Shut Down 60 Stores Amid Strategic Restructuring
Kroger has announced plans to close approximately 60 of its grocery stores – about 5% of its total locations – over the next 18 months as part of a broader operational review.
The U.S. supermarket giant disclosed the decision in its latest earnings report on Friday, stating that the closures would incur a $100 million impairment charge but are expected to bring “modest financial benefits” in the long term. The company did not release a list of the affected stores and has declined to provide further comment beyond what was included in the report.
Kroger operates about 1,200 stores across 16 U.S. states. The company said employees at impacted locations will be offered roles at nearby stores, and that savings from the closures will be reinvested to enhance customer experience in its remaining outlets.
The move comes just months after the collapse of Kroger’s proposed merger with rival Albertsons – a deal that would have formed one of the largest grocery chains in the country. The failed merger has since sparked legal battles between the two companies.
Despite the store closures, Kroger raised its full-year sales forecast, crediting a rise in consumer preference for eating at home over dining out. Interim CEO Ron Sargent noted during an earnings call that Kroger has seen increased foot traffic as shoppers seek value amid economic uncertainty.
Sargent also highlighted that the company’s private-label products, often priced lower than national brands, have now outpaced branded alternatives for seven straight quarters. As part of its growth strategy, Kroger plans to introduce 80 new high-protein items in the coming months to cater to health-conscious consumers.
Commenting on the store closures, Sargent said, “Not all of our stores are delivering the sustainable results we need,” and admitted the company had not completed its typical annual location review while focused on the now-abandoned merger.
Sargent took over as interim CEO in March following the resignation of former chief executive Rodney McMullen, who stepped down amid an internal investigation into personal conduct.
Following the earnings announcement, shares of Kroger (KR) rose nearly 10% by the close of trading on Friday.
