Kroger is closing down 60 stores over the next 18 months
The grocer has not yet revealed which stores will be closing, however, they will be locations across the U.S.
WASHINGTON — Kroger plans to close approximately 60 stores across the U.S. over the next 18 months, the grocery chain revealed in an earnings report.
“In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months,” the report said. “As a result of these store closures, Kroger expects a modest financial benefit.”
Kroger says the closures are part of an effort to streamline operations and reinvest in the customer experience.
“Unfortunately, today not all of our stores are delivering the sustainable results we need,” Ron Sargent, interim CEO of Kroger, said during the company’s June 2025 earnings call. "We don't take these decisions lightly, but this will make the company more efficient and Kroger will offer roles in other stores to all associates currently employed at affected stores."
While the company did not release a list of affected store locations, the interim CEO explained that the closures are across the country. He also noted that Kroger had previously delayed some store evaluations during its merger process, but the company is now resuming those efforts.
“We usually evaluate individual store performance on an annual basis, and we continue to do that, but we deferred closing any stores due to the merger process, so we see this as an opportunity to move these closed store sales to other stores,” Sargent said.
Despite the closures, adjusted first-quarter sales rose 3.7% to $45.12 billion, compared to $43.8 billion from the same quarter last year.
The planned store closures come as the nation's largest grocery store chain is regrouping from its failed effort to merge with Albertsons. The two companies proposed what would have been the largest supermarket merger in U.S. history in 2022, saying they needed to combine forces to better compete with rivals like Walmart.
A federal judge halted the $24.6 billion deal in in December, saying it was likely to lessen competition and raise prices. Albertsons later sued Kroger, saying it had failed to make every effort to ensure that the merger would win regulatory approval.
“In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months,” the report said. “As a result of these store closures, Kroger expects a modest financial benefit.”
Kroger says the closures are part of an effort to streamline operations and reinvest in the customer experience.
“Unfortunately, today not all of our stores are delivering the sustainable results we need,” Ron Sargent, interim CEO of Kroger, said during the company’s June 2025 earnings call. "We don't take these decisions lightly, but this will make the company more efficient and Kroger will offer roles in other stores to all associates currently employed at affected stores."
While the company did not release a list of affected store locations, the interim CEO explained that the closures are across the country. He also noted that Kroger had previously delayed some store evaluations during its merger process, but the company is now resuming those efforts.
“We usually evaluate individual store performance on an annual basis, and we continue to do that, but we deferred closing any stores due to the merger process, so we see this as an opportunity to move these closed store sales to other stores,” Sargent said.
Despite the closures, adjusted first-quarter sales rose 3.7% to $45.12 billion, compared to $43.8 billion from the same quarter last year.
The planned store closures come as the nation's largest grocery store chain is regrouping from its failed effort to merge with Albertsons. The two companies proposed what would have been the largest supermarket merger in U.S. history in 2022, saying they needed to combine forces to better compete with rivals like Walmart.
A federal judge halted the $24.6 billion deal in in December, saying it was likely to lessen competition and raise prices. Albertsons later sued Kroger, saying it had failed to make every effort to ensure that the merger would win regulatory approval.
Smith’s parent is shuttering stores. Will any Utah stores close? Here's what to know
Supermarket giant Kroger, the parent of Smith’s Food and Drug in Utah, announced June 20 that it plans to close 60 stores over the next 18 months.
The Cincinnati-based retailer, whose attempt to merge with Albertson’s failed in December, didn't specify what locations would close. The company operated 2,731 supermarkets across 35 states at the beginning of its fiscal year, meaning the cuts represent a little more than 2% of its locations.
The company said it expects “a modest financial benefit” from the closures, although it would absorb a $100 million impairment charge because of the closings.
Kroger said It would “reinvest” the savings from the closing “back into the customer experience,” and said it will “offer roles in other stores to all associates currently employed at affected stores.”
Kroger and Albertson’s stepped away from an attempt to merge two of the nation’s largest grocery store chains in December, bowing out after pressure from regulators. Albertson’s sued Kroger, claiming Kroger repeatedly violated the merger agreement.
How many Smith’s Food and Drug stores are in Utah?
Kroger operates 54 Smith’s Food and Drug stores in 36 cities across Utah.
What stores will close?
Kroger did not identify the stores that would close yet. No Smith’s stores in Utah were on the list of grocery stores that would have been sold off had the merger with Albertson’s gone through.
Massive Grocery Store Chain Kroger Announces 60 Closures
Kroger is ranked as the third-largest supermarket chain in the United States, behind only Walmart and Costco.
Thus, many Americans have come to rely on Kroger's grocery stores in their hometowns.
However, many communities are about to lose their grocery store.
Kroger announced on June 20 that it will close 60 stores across 16 states, which will amount to about 5 percent of its 1,239 "Kroger-branded grocery stores," CBS News reported.
"In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months," Kroger wrote in a June 20 news release.
"As a result of these store closures, Kroger expects a modest financial benefit. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance. Kroger will offer roles in other stores to all associates currently employed at affected stores," the release says.
Kroger's sales for the period fell to $45.1 billion compared to $45.3 billion.
Chairman and CEO Ron Sargent painted a forward-looking outlook in the release.
"Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience," he said.
It's not clear where the closing stores are located. The Cincinnati-Dayton area is not among them.
According to Supermarket News, Kroger is "seeking to bounce back from its failed bid to merge with Albertsons Cos. late last year and the loss of its chairman and CEO earlier this year."
The site reported that Kroger is planning to open some new stores in 2025 while closing the 60 locations that are deemed "underperforming."
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