Kroger to Close 60 Stores and Invest in Customer Experience

Kroger, the country’s largest supermarket operator by revenue, plans to close 60 of its grocery stores across the U.S. over the next year and a half, CBS News reports.

The closures represent roughly 5% of the Cincinnati-based retailer’s 1,239 Kroger-branded stores spanning 16 states.

Although shoppers may soon see “Closing” signs on local doors, the company has not disclosed which neighborhoods will be affected and confirmed to CBS News that it does not plan to release a list of affected locations.

Why Kroger is cutting back

CBS News reports that the move follows a dip in Kroger’s first-quarter sales, which fell to $45.1 billion from $45.3 billion a year earlier.

While the decline appears modest, the closures are part of a larger strategy to streamline operations and cut costs.

In a recent regulatory filing cited by CBS News, Kroger said it took a $100 million impairment charge tied to the plan and expects the closures to deliver a modest financial benefit.

Promises to protect jobs

Store closures often raise concerns about layoffs, but Kroger told CBS News it will offer affected employees jobs at other locations.

While the company hasn’t said how many workers could be impacted, it told CBS News that employees at affected stores will be offered roles at other locations.

How savings will be used

In its comments to CBS News, Kroger said the money saved by closing stores will be reinvested to improve customers’ shopping experiences.

Kroger’s broader strategy

The planned closures come amid an industry shift. Many grocery chains are reevaluating store footprints to focus on profitability and adapt to online shopping trends.

CBS News highlights that Kroger has invested heavily in its delivery and pickup services recently, helping it compete with giants like Walmart and Amazon.

By trimming stores, Kroger aims to free up capital for modernization and growth in high-demand areas.

What to expect next

For now, local communities won’t know exactly which stores are closing until announcements are made closer to each shutdown date.

CBS News notes customers will likely learn about closures through store signage or announcements.

Despite a smaller footprint, Kroger aims to remain a trusted shopping destination while staying financially resilient in a competitive market.