Kroger announced plans on Friday to close approximately 60 stores across the United States within the next 18 months. The move was disclosed during the company’s first-quarter 2025 earnings report and comes as part of a broader effort to streamline operations and boost efficiency.
Despite reporting that profits “exceeded our expectations,” the Cincinnati-based grocery chain is moving forward with what it calls a strategic shift. Ron Sargent, a member of Kroger’s board of directors, addressed the closures during the company’s earnings call.
“Unfortunately, today, not all of our stores are delivering the sustainable results we need,” Sargent said. “To position our company for future success, this morning, we announce plans to close approximately 60 stores over the next 18 months.”
Kroger emphasized that the decision is not a reflection of failure but rather a proactive step to strengthen the company’s long-term outlook. According to Sargent, the company conducted a review of locations that are “not meaningful to future growth” and determined that exiting those markets would enhance operational efficiency.
The closures will come with a financial cost. Kroger recorded a $100 million impairment charge tied to the plan. However, the company expects the closures to generate a “modest financial benefit” over time.
Kroger said it intends to reinvest the anticipated savings back into improving the customer shopping experience, though no specifics have been released regarding what those changes will entail.
No details have been provided on which store locations will be impacted. Kroger has not released a list, and it remains unclear whether closures will be concentrated in any particular region.
The company also stated that all employees at affected stores will be offered opportunities to transfer to other locations within the company. Kroger currently employs around 410,000 workers nationwide.
For the first quarter of 2025, Kroger reported $45.1 billion in sales, a slight decrease from $45.3 billion in the same period last year.
As one of the nation’s largest grocery retailers, Kroger continues to navigate an evolving retail landscape shaped by inflation, supply chain challenges, and shifting consumer habits. The company has indicated that further details on the store closures and reinvestment plans may be shared in future reports.
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