Big changes are on the horizon for one of America’s largest supermarket chains.
In an unexpected turn during its latest financial update, Kroger has revealed plans to close over 60 stores across the United States by the end of 2026.
And while the move might seem drastic, the company says it’s part of a broader strategy to stay financially strong and improve customer experience.
Over 60 Stores Set to Shut Down
The announcement came during Kroger’s first-quarter earnings report, released on June 20.
According to the report, the company is shuttering “underperforming” locations, and this round of closures will be one of the biggest the grocer has undertaken in years.
Kroger recorded a $100 million impairment charge related to the closures and explained the move would bring a “modest financial benefit” over time.
Though they didn’t dive into specifics just yet, more details about which locations are closing will be shared in the months ahead.
Employees Will Be Offered New Positions
One major concern with store closures is job loss.
But Kroger insists there will be no layoffs.
Instead, employees at impacted locations will have the chance to transfer to other nearby stores or take on new roles within the company.
“All associates at affected stores will be offered roles at other locations,” the report noted.
Where the Savings Will Go
The company is not just cutting costs for the sake of profit.
Kroger says the money saved from closing these locations will be reinvested into enhancing the customer experience.
Think better services, fresher produce, and expanded digital offerings.
They also clarified that this move won’t affect their full-year financial outlook, meaning they’re still optimistic about overall performance in 2025.
Revenue Dips, But Forecast Improves
In the same earnings report, Kroger shared that its first-quarter net income dropped to $866 million from $962 million this time last year.
Total sales also dipped slightly, falling from $45.3 billion to $45.1 billion.
Still, the company sounded upbeat, raising its same-store sales forecast (excluding fuel) to a range of 2.25% to 3.25%, citing consistent demand for fresh groceries, own-brand products, and digital services.
Plans to Grow in Stronger Markets
Even as it trims down in some areas, Kroger isn’t slowing its expansion in others.
The grocer is setting aside between $3.6 and $3.8 billion this year for capital projects, which include opening about 30 new stores by the end of 2025.
These new stores will focus on high-performing markets where Kroger sees potential for growth.
A Leadership Shift Amid Major Decisions
This all comes at a transitional time for Kroger.
Ron Sargent is currently serving as interim CEO after longtime executive Rodney McMullen stepped down in March following an internal ethics investigation.
The company is still in the process of searching for a permanent replacement to lead it into this new phase.
What’s Next?
Customers and employees alike are now waiting to find out which locations will be impacted and how soon.
For now, Kroger is signaling that these closures are a strategic step to strengthen its foundation and better serve shoppers in the long run.
So while it’s the end of the line for some stores, it’s also the beginning of a new chapter for the grocery giant.