Overview

• Kroger plans to shutter 60 underperforming stores across the United States over the next 18 months, representing about 5% of its 1,239 Kroger-branded locations.
• The company took a $100 million impairment charge tied to the closures and expects a modest financial benefit that will be reinvested in customer experience and e-commerce capabilities.
• Employees at closing stores will be offered roles at other Kroger locations to limit layoffs.
• In the first quarter, Kroger posted $45.12 billion in sales—slightly below forecasts—and adjusted earnings per share of $1.49, beating analyst expectations while raising full-year same-store sales growth guidance to 2.25%–3.25%.
• Interim CEO Ron Sargent said the closures will streamline operations and the board has launched a search for a new CEO following Rodney McMullen’s March resignation.