Kroger plans to shutter 60 of its stores nationwide within the next 18 months.
Kroger's Big Shakeup: Closing Over 60 Stores Across the US '25!
Hey there! Buckle up, folks, 'cause Kroger's making some changes. The Cincinnati-based grocery giant has announced plans to shutter 60 of its supermarkets across the good ol' US of A over the next 18 months. That's about 5% of their current roster of 1,239 Kroger-branded grocery stores, operating in 16 states.
Unfortunately, Kroger ain't spilling the beans on which exact stores are getting the axe quite yet. They told our MoneyWatch that they won't be providing a list of the affected stores.
Kroger announced this store shedin' while reporting their first-quarter earnings last Friday. Sales took a slight dip, dropping to $45.1 billion, compared to $45.3 billion for the same period in the previous year. But don't fret, they're expecting these closures to bolster their bottom line, according to a regulatory filing.
"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 company said. They anticipate a modest boost to their coffers as a result of these closures.
And where's that extra cash headed? Towardsimproving the customer experience, naturally! They're planning to spend their savings on initiatives that'll make your shopping trip smoother and more enjoyable.
Every Kroger worker at the affected stores will also be offered a position at another Kroger location.
Now, you might be wonderin' which states are gonna feel the burn the most. According to our research, they are:
- Indiana
- Kentucky
- Texas
- Tennessee
- Michigan
- Georgia
- Ohio
- Mississippi
- Missouri
- Louisiana
- Alabama
- Illinois
- South Carolina
- Arkansas
- Virginia
- West Virginia
It's worth mentionin' that Kroger's stores are concentrated heaviest in the first seven states listed, but closures aren't gonna be confined to those areas. A confirmed closure has already been reported in McKinney, Texas.
So, there you have it! Kroger's shuttering about 60 stores nationwide over the next year and a half, with the biggest impact anticipated in states where they have the highest store counts. Stay tuned for more updates, folks!
Kroger Shutdown: What You Need to Know
Megan Cerullo is our New York-based MoneyWatch reporter, coverin' small business, workplace, health care, consumer spending, and personal finance topics. You can catch her regular appearances on News 24/7 discussin' her reports!
- Amidst the store closures, Kroger plans to focus on enhancing the customer experience by investing in initiatives that promise to make shopping smoother and more enjoyable.
- The company's financial statement revealed that they recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months, suggesting these closures could boost their financial stability.
- While Kroger's closures will affect multiple states, the potential repercussions could be especially significant in states with higher store counts, such as Texas, Indiana, Kentucky, Tennessee, Michigan, Georgia, and Ohio.
