Kroger is planning to shut down 60 stores across the U.S. in the next 18 months. The news came Friday as part of the company’s first-quarter 2025 earnings report.
The grocery giant, based in Cincinnati, said profits still "exceeded our expectations." But that didn’t stop the company from announcing a major shift.
Director Ron Sargent explained the move on an earnings call. “Unfortunately, today, not all of our stores are delivering the sustainable results we need,” he said. “To position our company for future success, this morning, we announce plans to close approximately 60 stores over the next 18 months.”
Kroger says the closures are about efficiency, not failure. “We reviewed areas not meaningful to future growth,” Sargent added, “and determined that closing the stores will make the company more efficient.”
The move came with a price — a $100 million impairment charge. But Kroger expects to come out ahead. The report says the company “expects a modest financial benefit” from the closures.
Those savings will be funneled back into customers. Kroger plans to reinvest in the shopping experience, though it hasn’t detailed how just yet.
The company hasn’t said which stores will be impacted. No list is being released at this time. But all affected workers will be offered jobs at other locations.
Kroger has around 410,000 employees nationwide. First-quarter sales totaled $45.1 billion — slightly down from $45.3 billion last year.