Grocery giant Kroger announced during its first quarter revenue call this month that it will close around 60 defective stores over the next 18 months. At the same time, the company plans to open new locations this year and through the next location.
“We simplify our business and review areas that are meaningless for future growth. Unfortunately, not all of our stores today deliver the sustainable results we need,” Ronald Sargent, chairman and interim CEO of Kroger, said in a June 20th revenue call.
“We are not underestimating these decisions, but this will make the company more efficient and Kroger will provide roles in other stores to all associates currently employed in affected stores.”
No specific stores intended to close have been officially confirmed.
Kroger is the parent company of King Sopers and City Market. The King Supers has 120 grocery stores in 37 cities across the state, but City Market has 32 grocery stores in 27 cities, according to the website.
When asked if the Colorado location would be affected, Kroger representatives posted that there were no further details at this time.
Other media have already identified several locations facing closures in Illinois, Kentucky, Georgia, Indiana, Wisconsin, Texas, West Virginia, Virginia and Tennessee.
United Food & Commercial Worker Local 400. It announced that four representative stores will be closing on behalf of 35,000 members of Retail Food, Healthcare, Department Stores, Food Processing and other sectors in Maryland, Virginia, Washington, DC, West Virginia, Ohio, Kentucky and Tennessee.
“The communities where members serve at these stores will suffer as a direct result of Kroger prioritizing Wall Street investors over customers and hardworking employees,” UFCW local 400 union president Mark Federisi said in a statement.
“Closening these stores will not only reduce union employment opportunities, but will further restrict food access in rural areas where there are fewer alternatives to purchasing groceries.
Looking forward to it, Kroger is looking forward to opening a new store after 2026.
It has not been revealed where these new stores will open, but the company leader said they will look at sites across the country, focusing on areas with competitive advantages and potential growth.
On February 1st of this year, Kroger operated more than 2,700 stores. The planned closures account for about 2.2% of its total location.
The company said Kroger refrained from closing its stores amid efforts to integrate its fellow grocery giant Albertsons.
Kroger and Albertsons first proposed a merger in 2022. They argued that when combined, it would help them compete with major retailers like Walmart and Costco.
But the Federal Trade Commission and two states, Washington and Colorado, sued to stop the merger last year, saying they would raise prices and lower wages for workers by eliminating competition.
The company expects the closure to have “conservative financial benefits” overall and plans to reinvest savings from the closure into improving the customer experience.
Original issue: June 25th, 2025, 12:10pm EDT
