Kroger to Close 60 Stores Nationwide Over Next 18 Months

CINCINNATI, Ohio — The Kroger Co. announced plans to close approximately 60 stores across the country in the next 18 months. This decision comes as the grocery chain recorded a $100 million impairment charge associated with the planned closures.

The announcement was made during Kroger’s first-quarter earnings call, where the company discussed its financial performance and future plans. Kroger stated that it expects these closures to provide a modest financial benefit, which they will reinvest to enhance the customer experience.

A Kroger spokesperson confirmed that they do not anticipate any closures in the Cincinnati-Dayton region. The company operates around 2,700 stores nationwide and has not yet specified which locations will be closing.

Interim CEO Ron Sargent highlighted that the company is focusing on improving store performance. This comes after a turbulent period, including the unexpected resignation of former CEO Rodney McMullen earlier this year.

Kroger’s first-quarter sales figures revealed a slight decline of $200 million compared to the same period last year, although sales increased by 3.7 percent overall. The company also plans to continue its aggressive remodeling strategy while closing these stores. They are optimistic about stronger sales growth from the remaining stores.

Employees at closing locations will have the opportunity to apply for jobs at other nearby Kroger stores. Despite the upcoming closures, Kroger raised its sales growth forecast, expecting an increase of up to 3.25% for the year. The adjustment reflects more focus on core business operations, particularly in pharmacy and e-commerce.

The grocery chain aims to adapt to changing shopping behaviors as consumers shift towards private-label products and make more budget-conscious purchases.