Kroger to Close 60 Stores Nationwide Over 18 Months
On June 20, Kroger—America’s largest traditional supermarket chain—announced plans to shutter approximately 60 stores nationwide over the next 18 months. These closures target underperforming locations, and Kroger will offer affected employees transfers to nearby stores.
This move follows a failed bid to merge with Albertsons, which was blocked due to antitrust concerns, and a leadership shake-up last March that saw former CEO Rodney McMullen step down amid a personal conduct investigation. Interim CEO Ron Sargent says the closures aren’t about shrinking Kroger's reach—they’re about optimizing operations and shifting focus to stronger-performing stores while continuing to open about 30 new stores this year.
As part of its Q1 earnings report:
- Kroger recorded a $100 million impairment charge related to the upcoming closures.
- Yet it forecasts a “modest financial benefit” from reallocating resources to better-performing markets and reinvesting savings into customer experience improvements.
- First-quarter profits reached $866 million, with same-store sales up 3.2% (excluding fuel), beating expectations and prompting a rise in full-year identical-store sales guidance to 2.25%–3.25%.
Investors responded positively—Kroger’s stock jumped 5.5% on the day of the announcement, and has gained 39% over the past year—reflecting strong confidence in the company’s strategy.
- Employees from the closing stores will be offered transfers.
- Customers in affected areas are advised to check for local announcements about store conversions or replacements.
- Communities with limited grocery options may feel the loss, though Kroger emphasizes new openings and expanded e-commerce—including a 15% lift in last quarter’s online sales—to ensure access.
Kroger’s planned closures signal a smart pivot: trimming underperformers while fueling growth in stronger outlets and digital channels. With solid Q1 results, raised guidance, and significant share gains, the retailer is reshaping its footprint—not shrinking it. As the company reinvents its store lineup, shoppers and employees are bracing for change.
