Kroger to Close Dozens of Stores by Next Year

Kroger, a major grocery chain based in Cincinnati, has announced plans to shut down about 60 stores by the end of next year. This decision comes as part of their broader strategy, revealed in their first quarter revenue report for 2025.

The company highlighted that while their profits surpassed expectations, they are reassessing areas that might not contribute to future growth. Ron Sargent, the director, mentioned during a revenue call that closing these stores is aimed at improving efficiency. “Unfortunately, not all of our stores today provide the sustainable results we need,” Sargent noted. He also indicated that these closures are part of positioning Kroger for a better future.

Interestingly, this move aligns with ongoing legal issues Kroger is facing against Albertsons. The closures have hit Kroger with a $100 million impairment, yet they are optimistic about achieving modest financial gains from these changes. The company plans to reinvest any savings to enhance customer experience, though it remains unclear if this will affect year-round guidance.

Kroger has opted not to disclose which specific locations will be closing at this time. They maintain that affected employees will be provided with work opportunities elsewhere, as the company employs around 410,000 individuals across the U.S.

Total revenue for Kroger in the first quarter was reported at $45.1 billion, slightly down from $45.3 billion in the corresponding period last year.