Kroger Co. announced plans to close 60 stores over the next 18 months, reducing about 5% of its 1,239 Kroger-branded locations across 16 states. The company has not released the list of specific stores that will be affected, according to CBS News.
Kroger reported first-quarter sales of $45.1 billion, down from $45.3 billion the year before. The company saw a 3.2% increase in identical-store sales, excluding fuel. Interim chairman and CEO Ron Sargent said, “While we are closing these stores, we are committed to reinvesting the savings back into improving the customer experience,” as reported by Click2Houston. He added that employees affected by the closures would be offered other positions within the company.
Kroger announced in a regulatory filing that it will close some stores and take a $100 million impairment charge this quarter. "As a result of these store closures, Kroger expects a modest financial benefit," as mentioned by CBS News. The company plans to use the savings to support customer programs. The closures follow ongoing merger discussions with Albertsons. Kroger also plans to open or remodel 30 major stores in 2025.
