Kroger, one of the nation’s largest grocery retailers, announced plans to close underperforming stores across the United States by the end of 2026, citing a strategy to reinvest in customer experience and streamline operations, the Independent reported.
Kroger will shutter approximately 60 stores it deems underperforming over the next 18 months, the company revealed Friday in its first-quarter earnings report. The closures are expected to generate a “modest financial benefit” and are part of the grocery chain’s broader realignment strategy.
“In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit,” the company stated.
Despite the sweeping closures, Kroger stressed it does not anticipate layoffs as part of the transition. Employees working at the affected locations will be given opportunities to transfer to other stores within the company.
“Employees at the affected stores will be offered roles in other stores,” the report said.
The closures come as Kroger reported declining first-quarter earnings and revenue. Net income fell to $866 million from $962 million in the same quarter a year ago, while total sales dipped slightly to $45.1 billion, down from $45.3 billion during the same quarter last year.
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Author: Dillon B
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