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Kroger to Close 60 Underperforming Stores Over Next 18 Months

After a failed merger with Albertsons, Kroger is reallocating closure savings into price cuts, promotions, customer experience upgrades.

HOUSTON, TEXAS - SEPTEMBER 09: A Kroger grocery store is seen on September 09, 2022 in Houston, Texas. Kroger stock increased six percent as the company has surpassed profit and sales expectations.  (Photo by Brandon Bell/Getty Images)
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Overview

  • Kroger took a $100 million impairment charge in its first-quarter earnings and will maintain full-year guidance while expecting a modest net benefit from the closures.
  • Interim CEO Ron Sargent said the closures follow a delayed annual review during merger talks with Albertsons and are intended to streamline operations.
  • Local reports confirm shuttered locations in Texas, West Virginia, Virginia, Kentucky, Tennessee and four Metro Atlanta stores, though Kroger has not released a complete list.
  • Affected associates will be offered transfers to nearby Kroger stores to minimize workforce disruptions and avoid layoffs.
  • The company plans to reinvest savings into customer-focused initiatives including expanded price reductions, promotional campaigns and 80 new protein-rich products.