Overview

• Kroger recorded a $100 million impairment charge in the first quarter tied to the planned shutdown of about 60 stores over the next 18 months.
• The closures span 16 states where the grocer maintains roughly 1,239 locations; specific outlets have not been identified.
• Interim CEO Ron Sargent said all associates at impacted stores will be offered positions at other Kroger facilities.
• Despite the announcement of these cuts, adjusted first-quarter sales rose 3.7 percent year over year to $45.12 billion.
• Kroger expects a modest financial benefit from the shutdowns, intending to reinvest savings to enhance customer service.