Kroger Plans 60 Store Closures Across 16 States

Kroger announced plans to close approximately 60 underperforming stores across 16 states over the next 18 months as part of its strategy to improve profitability and streamline operations. Despite a 3.7% increase in first-quarter sales totaling $45.12 billion, the company recorded a $100 million impairment charge related to the closures, which are expected to provide a modest financial benefit and allow reinvestment into the customer experience. The closures include stores in rural and smaller communities such as Kingsport, Abingdon, and Gassaway, WV, raising concerns from the United Food & Commercial Workers Union Local 400 about reduced food access and job losses in these areas. Kroger emphasizes that affected employees will be offered roles at other locations, though the practicality of such transfers varies by distance. The union criticized Kroger for prioritizing stock buybacks, legal fees, and executive compensation over store investments and employee support. Kroger has not released a complete list of closing locations or specific timing, but the moves are part of a broader effort to focus on core business growth, including expanding private-label products and monitoring e-commerce trends.