Grocery giant Kroger to shutter 60 stores by 2026 in major reshuffle
In a surprising move that mixes tough love with business strategy, American grocery behemoth Kroger has announced plans to shut down 60 stores nationwide by the end of 2026. The retail chain, headquartered in Cincinnati and known for running thousands of supermarkets and pharmacies across the U.S., broke the news during its first-quarter earnings call.
Kroger trims the fat with 60 store closures despite strong profits
And no, this is not a sign of financial doom. In fact, Kroger exceeded its profit expectations this quarter. But that has not stopped the company from spring-cleaning its store roster.
"Not all stores are built to last"
Director Ron Sargent explained that while the overall numbers look strong, not every store is pulling its weight. After evaluating which locations are no longer aligned with Kroger's long-term growth strategy, the company concluded that a targeted round of closures was necessary to boost efficiency and streamline operations.
Some tough decisions had to be made, he said, adding that Kroger is determined to focus only on stores delivering consistent, sustainable results.
A $100 million blow, but a strategic play
The closures will not come cheap, Kroger is taking a $100 million impairment charge due to the plan. Still, the company believes the downsizing will bring a modest financial benefit in the long run. The money saved will reportedly be channelled back into improving the customer experience, although details remain light for now.
Staff will be relocated, but locations stay secret, for now
Kroger currently employs around 410,000 associates across the country, and the company insists that no one will be left behind. Employees from the affected stores will be offered roles at other nearby locations.
However, Kroger is keeping its cards close to its chest when it comes to naming which stores are getting the boot. No official list has been released yet, and for now, shoppers are left to speculate whether their go-to Kroger will survive the cut.
With total company sales slipping slightly from $45.3 billion to $45.1 billion compared to the same period last year, this leaner strategy could mark a new chapter for the grocery giant, one built on precision, not just presence.
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