Kroger To Close 60 Stores Across US: What To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Kroger announced plans to close 60 of its supermarkets across the United States over the next 18 months, representing about 5 percent of the Cincinnati-based company's 1,239 Kroger-branded grocery stores across 16 states.
The popular grocery retailer revealed the closure plans while reporting first-quarter earnings on Friday but has not specified which store locations will be affected or released a list of impacted stores.
Newsweek reached out to Kroger on Saturday via email for comment.
Why It Matters
Companies close store locations for various reasons. While shifts in consumer shopping behavior and lower demand can cause stores to close, corporations often choose to shutter underperforming locations.
Sales dropped slightly to $45.1 billion compared to $45.3 billion for the same period a year earlier according to Kroger earnings data. The move comes as grocery retailers nationwide face mounting pressures from changing consumer habits, inflation, and increased competition from discount chains and online retailers.
More than 2,500 store closures are planned across the U.S. this year, according to The Mirror.
What To Know
Kroger expects the 60 store closures to provide a modest financial benefit to the company, according to a regulatory filing. In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closings. The company indicated that resulting savings will be reinvested into customer experience initiatives across remaining locations.
The closures affect Kroger's extensive footprint spanning 16 states, though the company has remained tight-lipped about specific locations. The grocery retailer told CBS MoneyWatch that it will not be releasing a list of the affected stores. This lack of transparency has left employees and customers uncertain about which communities will lose their local Kroger.
However, Kroger says it is committed to supporting displaced workers. All employees at affected stores will be offered roles at other Kroger store locations, though details about relocation assistance or wage protection remain unclear.
The timing coincides with broader challenges facing traditional grocery retailers. Many chains are grappling with rising operational costs, changing shopping patterns accelerated by the pandemic, and fierce competition from warehouse clubs, dollar stores, and e-commerce platforms.
FILE - This June 17, 2014, file photo, shows a Kroger store in Houston. Kroger Co.
FILE - This June 17, 2014, file photo, shows a Kroger store in Houston. Kroger Co.
AP Photo/David J. Phillip
What People Are Saying
Kroger company statement: "As a result of these store closures, Kroger expects a modest financial benefit. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance."
Director of Media Relations/Corporate Communications Erin Rolfes told Newsweek in an email response: "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."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "For some major retailers, 2025 is becoming a year of consolidation. Retail locations that have struggled in recent years to remain profitable due to rising costs and less demand are being shuttered, as companies focus their efforts on more successful stores. The hope is these closures will ultimately produce more fiscal and operational efficiency, but it will come at the cost of customers who favored these locations having fewer options."
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, previously told Newsweek: "These aren't random casualties; they're strategic amputations of unprofitable limbs to save the corporate body...From $15+ minimum wages to supply chain inflation, all crushing their razor-thin margins. Combine this with the march of e-commerce and changing consumer habits post-pandemic, physical retail becomes a luxury many companies can no longer afford."
What Happens Next
The 18-month closure timeline suggests Kroger will implement the plan gradually, though specific dates and locations remain undisclosed.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
41 minutes ago
- Newsweek
Mercedes Formula One Team Reports Massive $120 Million Revenue Boost
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Mercedes Formula One team has reported a significant revenue increase of approximately $120 million (as per today's exchange rates). Sixty percent of the earnings come from sponsorship and licensing. From the data published by the UK's Companies House, as published by Mercedes Grand Prix Limited, the parent company of the Mercedes F1 team, reported a turnover of approximately $856 million (£636 million) in 2024, which is a stark increase from 2023's $735 million (£546.5 million). Consequently, profits too have jumped significantly. Mercedes recorded an approximate $112.7 million (£83.8 million) net profit in 2023, with the number rising to $162 million (£120.34 million) in 2024, an increase of approximately $50 million. Mercedes' British driver George Russell pulls into pit lane after winning the 2025 Formula 1 Grand Prix du Canada at Circuit Gilles-Villeneuve in Montreal, Canada, on June 15, 2025. Mercedes' British driver George Russell pulls into pit lane after winning the 2025 Formula 1 Grand Prix du Canada at Circuit Gilles-Villeneuve in Montreal, Canada, on June 15, 2025. TIMOTHY A. CLARY/AFP/Getty Images It is noteworthy that Mercedes received a significant share of the F1 prize money for securing second place in the 2023 Constructors' Championship, which increased its revenue in 2024 since payments are processed the following year. As a result of the positive earnings, the team's three shareholders, Mercedes-Benz Group, team principal Toto Wolff, and Ineos, will receive an ordinary dividend of approximately $168 million (£125 million). However, it remains to be seen what impact Mercedes' performance in the 2024 season will have on its earnings, considering it secured fourth place in the championship. In addition, it would be interesting to see a change in the percentage of earnings from sponsorships, given seven-time world champion Lewis Hamilton's exit from the team after the 2024 season. Speaking of 2025, the season has been dominated by McLaren thus far. Mercedes achieved its first win in the previous round in Montreal, where the team's lead driver, George Russell, started from pole position and led the race for the majority of the laps to secure his first win of the year. However, rumors are doing the rounds that Russell is on Aston Martin's radar for the 2026 season, when the sport enters a new era of regulations. Newsweek Sports reported Russell's comments, who confirmed the interest shown by other teams but emphasized his intention to continue racing for Mercedes. He said: "No, I'm not talking with anybody else and any teams who have shown interest. I have been quite open to say my intentions are to stay with Mercedes. That's always been clear. "And, you know, I am loyal to Mercedes. They gave me this chance to get into Formula 1. There haven't been any hard feelings with any of the talks that have been going around, you know, especially around Max because, like I said numerous times, why wouldn't teams be interested in Max if everybody could, if every driver had a clean, no contracts for next year, Max would be the number one for every single team. And that's understandable. "But ultimately there are two seats for every race team and I knew if I continued to perform as I'm doing, my position would not be under threat whatsoever. So, I feel in a good place. We're in no rush to do contract negotiations."
Newsweek
an hour ago
- Newsweek
Donald Trump Calls Green Tax Credits in 'Big Beautiful Bill' 'Scam'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump criticized his own federal budget legislation in a post on Truth Social Saturday. "I HATE 'GREEN TAX CREDITS' IN THE GREAT, BIG, BEAUTIFUL BILL," the president said, adding "They are largely a giant SCAM." The bill, which includes $4.9 trillion package packed with tax breaks, budget cuts and new Medicaid work requirements, made it past the House last month in a close 215-214 vote, with two Republicans breaking ranks to vote "no," Newsweek previously reported. The next hurdle, opposition and infighting in the Senate. Now, Trump has stated even he has problems with outlined initiatives. "I would much prefer that this money be used somewhere else, including reductions. 'Anywhere' would be preferable!" Trump exclaimed. "Windmills, and the rest of this "JUNK," are the most expensive and inefficient energy in the world, is destroying the beauty of the environment, and is 10 times more costly than any other energy," the President explained, adding "None of it works without massive government subsidy (energy should NOT NEED SUBSIDY!). Also, it is almost exclusively made in China!!! It is time to break away, finally, from this craziness!!!" This is a breaking news story. Updates to come.
Yahoo
an hour ago
- Yahoo
The Kroger (KR) Surges 9.8% on Optimistic Sales Growth Outlook
The Kroger Co. (NYSE:KR) is one of the Kroger rallied by 9.84 percent on Friday to finish at $71.97 apiece as investor sentiment was buoyed by its optimistic sales outlook despite macroeconomic uncertainties. In a statement, The Kroger Co. (NYSE:KR) Chief Finance Officer David Kennerley said that strong sales results in the first quarter of the year has pushed the management to raise its identical sales guidance, without the impact of fuel, by 2.25 percent to 3.25 percent. Outlook for other elements, however, remained unchanged. Net earnings per share were reaffirmed at a range of $4.6 to $4.8, while capital expenditures were pegged at $3.6 billion to $3.8 billion. A customer buying an item at a checkout counter in a grocery store. In the first quarter of the year, The Kroger Co. (NYSE:KR) dropped its attributable net income by 8.5 percent to $866 million from $947 million in the same period last year. Sales remained flat at $45 billion. While we acknowledge the potential of KR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
