


Kroger to Close 60 Supermarkets Nationwide Amid Flat Sales
Kroger announces plans to close 60 supermarkets over 18 months, reallocating savings to enhance customer experience while offering affected employees new positions.
Overview
- Kroger will close approximately 60 supermarkets across the U.S. in the next 18 months as part of a strategic restructuring.
- The company's total sales reached $45.1 billion, remaining flat and slightly below Wall Street's expectations for growth.
- Kroger expects to gain modest financial benefits from the store closures, which will help fund customer experience improvements.
- The closure plan aims to redirect savings into initiatives that enhance customer satisfaction and store operations.
- Affected employees will be offered positions at other Kroger locations, ensuring job security for those impacted by the closures.
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Analysis
Center-leaning sources frame Kroger's store closures as a strategic business decision, emphasizing financial implications and employee support. They convey a sense of inevitability regarding corporate restructuring while highlighting potential benefits for customer experience. Implicitly, there is a focus on corporate responsibility, balancing economic realities with employee welfare.
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FAQ
Kroger plans to close around 60 stores across 16 states over the next 18 months.
Affected employees will be offered positions at other Kroger locations to ensure job security for those impacted by the closures.
Kroger plans to use the savings from closing stores to enhance the customer experience and improve store operations.
Despite closing 60 stores, Kroger intends to continue with an aggressive store remodeling and new-store opening strategy, with 30 major store projects planned for 2025 and accelerated store openings in 2026.
The store closures are expected to provide a modest financial benefit to Kroger and helped trigger a $100 million impairment charge in the first quarter, but will not impact the company's full-year financial guidance.
History
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