Kroger, the Cincinnati-based supermarket leader, has announced plans for Kroger closing 60 stores across US locations over the next year and a half. This significant move was revealed in the company’s first quarter 2025 earnings report, signaling a strategic shift as Kroger aims to optimize its operations and reinvest in areas with greater growth potential
Why Is Kroger Closing 60 Stores?
In its Q1 2025 financial update, Kroger confirmed plans to close approximately 60 stores over the next 18 months. This decision follows a $100 million impairment charge in the first quarter linked to these planned closures.
The decision to close approximately 60 stores is part of a broader effort to streamline operations and improve profitability. Kroger cited the need to address underperforming locations that were previously kept open due to ongoing merger discussions with Albertsons, which ultimately fell through. With the merger process concluded, Kroger is now acting on its long-standing plan to evaluate and close stores that are no longer financially viable.
Kroger’s leadership emphasized that the closures are spread across the country, with a few locations closing in each division rather than a mass shutdown in any single region. The company expects a modest financial benefit from these closures and plans to reinvest the savings into enhancing the customer experience at its remaining locations.
Balancing Closures with Growth
Even amid closures, Kroger isn't treading water:
- ~30 new store projects are slated for completion by end of 2025, with accelerated expansion in 2026.
- E-commerce is thriving, with online sales surging ~15% in the last quarter.
- Private-label offerings and pharmacy services are performing strongly—groceries saw identical-store sales rise 3.2%, while pharmacies and “Our Brands” grew by 3.7% .
This strategy reflects Kroger's shift toward a precision approach—closing underperforming locations while doubling down in high-growth markets and digital channels.
Impact on Employees & Communities
Kroger has committed to offering transfers or new roles for all affected employees, signaling a focus on workforce retention.
That said, communities where these stores serve as vital access points may feel the loss keenly. Particularly in areas with limited competition, shoppers might face longer travel times—many are already voicing concern about losing their “only store in town”.
Operational Efficiency & Financial Performance
Despite the closures, Kroger reported solid results:
- Net income: $866 million (~$1.30/share), compared to $947 million last year.
- Identical-store sales (excluding fuel): +3.2%, prompting a raised forecast to 2.25–3.25% for the year.
- Stock performance: Shares jumped 5–9% following the earnings report .
This shows Kroger is striking a balance—optimizing its real estate footprint while continuing to invest in store experience, digital growth, and products that resonate with budget-conscious consumers.