Kroger to shutter 60 stores by end of 2026
The Kroger Co. is closing some locations but remains committed to store growth.
The grocery store giant revealed in its first-quarter earnings release that it plans to close approximately 60 locations during the next year and a half. Kroger said it expects a “modest financial benefit” from the closings and will reinvest the savings back into the customer experience.
Kroger, which has about 1,200 stores across 16 U.S. states, said the closures will not impact its guidance for 2025, during which it expects operating profit of between $4.7 billion and $4.9 billion. The company plans to offer roles in other stores to all associates currently employed at affected stores.
The store closing news comes roughly six months after Kroger and Albertsons called off their $24.6 billion merger amid regulatory pushback. And in March, Kroger's former chairman and CEO Rodney McMullen resigned following a board investigation which found that his personal conduct was "inconsistent” with Kroger's policy on business ethics. The Kroger board tapped lead director Ronald "Ron" Sargent, the former chairman and CEO of Staples, to serve as chairman and interim CEO,
On the earnings call, Sargent told analysts that the company had paused its annual store review during the merger process and that all of its stores are not “delivering the sustainable results we need,” so it is now catching up with closing the unprofitable stores.
But even as it closes some locations, Kroger plans to open new stores in higher-growth parts of the country and ramp up the openings in 2026, Sargent said.
First Quarter
Kroger reported net income of $866 million, or $1.29 per share, the quarter ended May 24. Revenue totaled $45.12 billion compared to $45.19 billion in the year-ago quarter, which included $917 million from Kroger Specialty Pharmacy sales.
Identical sales, excluding fuel, rose 3.2% compared to the year-ago period, with growth coming from pharmacy, e-commerce and fresh groceries. The company’s e-commerce sales were up 15%.
“Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh,"Sargent said in the earnings release. "We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience."
