The American grocery chain Kroger is set to close about 60 stores after a plan to merge with a rival retailer failed.
Kroger plans to shutter the stores over the next 18 months and ‘expects a modest financial benefit’ as a result, according to its report for the first quarter of 2025 released on Friday.
The company said the closures come with a $100million impairment charge but will not affect its guidance for this year, with an operating profit estimated to come in between $4.7billion and $4.9billion.
‘Kroger is committed to reinvesting these savings back into the customer experience,’ states the report.
The closures decision comes after a merger with Albertsons failed due to an antitrust ruling, and Kroger ousted its longtime CEO, Rodney McMullen, in March following an investigation into his personal conduct.
Kroger is offering all employees who will be affected by the closures, positions at its other stores.
The company has more than 1,200 stores nationwide, and the planned closures affect about 5% of its footprint.
Kroger has not provided a list of the locations that will be closing, but several local media outlets have identified some of the stores.
List of Krogers stores closing in the next 18 months
Tennessee
- Bristol store to close in September, per WFHG
Texas
- Dickinson store to close in June, per Houston Chronicle
- University Drive store in McKinney to close, per WFAA
- Sterling Ridge store in The Woodlands to close in May, per Community Impact
Virginia
- Abingdon store to close in September, per WFHG
West Virginia
- Gassway store to close in August, per WCHS
Kroger chairman and CEO Ron Sargent said the company delivered ‘solid’ first quarter results with the strongest sales from its pharmacy, fresh and eCommerce verticals.
‘We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience,’ stated Sargent.
‘Our commitment to driving growth in our core business and moving with speed positions us well for the future.
‘We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders.’
The closures announcement came four days after American home goods retailer At Home filed for bankruptcy and said it would shutter 26 locations across the country by this fall.
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