Kroger, America’s largest grocery chain, will close about 60 stores nationwide over the next 18 months. The company announced this plan in its latest earnings report.
Why Is Kroger Closing Stores?
Kroger shared its decision to shut down 60 stores in a financial report released in June 2025. The closures will happen over the next year and a half, but the company has not yet said which stores will close. The goal is to make the business more efficient and improve the shopping experience for customers.
The report explained that Kroger took a $100 million charge to cover the costs of closing these stores. This means the company expects to save money in the long run by closing underperforming locations. Ron Sargent, Kroger’s interim CEO, said, “Not all of our stores are giving us the results we need. These closures will help us run a stronger business.”
Kroger also promised to offer jobs at other nearby stores to all employees affected by the closures. This move shows the company’s effort to support its workers during this change.
Background: A Tough Time for Kroger
Kroger has faced challenges recently. In 2022, the company tried to merge with Albertsons, another major grocery chain. The $24.6 billion deal would have been the biggest supermarket merger in U.S. history. Kroger and Albertsons said they needed to join forces to compete with giant retailers like Walmart.
However, a federal judge stopped the merger in December 2024. The judge ruled that the deal could reduce competition and lead to higher prices for shoppers. After the decision, Albertsons sued Kroger, claiming the company did not do enough to get the merger approved by regulators.
During the merger process, Kroger delayed closing any stores. Now that the merger is off, the company is moving forward with its plan to close 60 locations. Sargent explained, “We usually check how each store is doing every year. We paused closures during the merger, but now we’re ready to make these changes.”
What’s Happening with Kroger’s Business?
Despite the store closures, Kroger is still growing in some areas. In the first quarter of 2025, the company’s sales reached $45.12 billion, up 3.7% from $43.8 billion the previous year. This shows that Kroger remains a strong player in the grocery industry, even as it makes tough decisions.
The closures are part of a bigger plan to focus on stores that perform well. By closing weaker locations, Kroger hopes to move customers to nearby stores and invest in improvements like better technology, lower prices, and a nicer shopping experience.
How Will This Affect Shoppers and Workers?
For shoppers, the closures may mean traveling to a different Kroger store. The company has not shared which cities or states will lose stores, so customers will need to stay updated. Kroger operates over 2,700 stores across the U.S., so most areas will still have access to a nearby location.
For employees, Kroger’s promise to offer jobs at other stores is a positive step. However, some workers may need to relocate or adjust to new roles. The company has not said how many employees will be affected, but with thousands of stores still open, there should be opportunities for most.
What Experts Say
Retail expert Dr. Sarah Thompson, a professor at Ohio State University, said store closures are common in the grocery industry. “Big chains like Kroger regularly review their stores to stay competitive,” she said. “Closing underperforming locations allows them to focus on stronger stores and keep prices low for customers.”
Thompson also noted that the failed Albertsons merger likely pushed Kroger to act faster. “Without the merger, Kroger needs to show investors it can grow on its own. These closures are a way to cut costs and stay strong.”
What’s Next for Kroger?
Kroger’s store closures mark a new chapter for the company. As it moves forward without the Albertsons merger, Kroger will focus on improving its remaining stores and competing with rivals like Walmart and Amazon. The company is also investing in online shopping and delivery services to meet changing customer needs.
For now, shoppers and employees are waiting to learn which stores will close. Kroger has promised to share more details soon. In the meantime, the company remains a key part of America’s grocery market, serving millions of customers every day.
As President Donald Trump begins his second term in 2025, economic changes and rising costs continue to shape the retail industry. Kroger’s decision reflects the challenges many businesses face in staying profitable while keeping customers happy.
