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June 24, 2025
Kroger Stores Closing: Kroger plans to close around 60 of its grocery stores, which is roughly 5% of its total locations. These closures will take place gradually over the next year and a half.
This move follows the collapse of Kroger’s proposed merger with rival Albertsons. Since then, both companies have become tangled in a legal dispute over the failed deal.
In its earnings report on Friday, Kroger shared that it will take a $100 million impairment charge due to the upcoming store closures.
Despite the loss, the company expects a small financial gain in the long run. Kroger has not disclosed which stores will be closing. It also declined to make any additional comments beyond what was shared in the report.
Kroger said that workers impacted by the closures will be given job opportunities at nearby locations.
The company also plans to reinvest the savings into improving the customer experience at its remaining stores.
Currently, Kroger operates around 1,200 stores across 16 states in the U.S.
Kroger shared that it's seeing a boost as more people cut back on eating out. As a result, the company has raised its sales outlook for the year.
Interim CEO Ron Sargent mentioned during the earnings call that customers are now “eating more meals at home.”
Kroger reported a sales boost thanks to price cuts on 2,000 items and stronger promotions for its private-label products.
These store-brand items are often more affordable than big-name brands.
According to Interim CEO Ron Sargent, sales of private labels have outpaced national brand sales for seven straight quarters.
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Looking ahead, Kroger plans to launch 80 new protein-rich products to meet rising demand for high-protein foods.
Speaking about the store closures, Ron Sargent said that some locations are no longer delivering the steady results the company expects.
He also noted that during the merger process, Kroger skipped its usual yearly review of store performance.
Sargent took over as interim CEO in March. This came after former CEO Rodney McMullen stepped down suddenly, following a probe into his personal behavior.
On Friday, Kroger’s stock (KR) closed with a gain of nearly 10%.
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