Kroger plans to close 60 stores, open 30 new ones

USA – Kroger, a retail company, has announced plans to close approximately 60 underperforming stores across the USA over the next 18 months, while simultaneously investing in 30 new store projects aimed at high-growth markets.

The decision, unveiled during the company’s fiscal 2025 first-quarter earnings call, follows a strategic review that had been paused during Kroger’s now-abandoned merger with Albertsons.

Interim CEO Ronald Sargent emphasized that the closures are not concentrated in any one region but are spread across multiple divisions, reflecting a broader effort to streamline operations and improve long-term profitability.

Sargent, said, “We’re simplifying our business and reviewing areas that will not be meaningful to our future growth. Unfortunately, not all of our stores are delivering the sustainable results we need today. 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.”

With the planned store closings, Kroger recorded a US$100 million impairment charge in the first quarter but said it expects a modest financial benefit and to reinvest the savings back into the customer experience.

Chief Financial Officer David Kennerley said that a key priority for Kroger is to improve ROIC and, to that end, the company is improving asset utilization and reallocating capital towards higher-return projects, including efforts “to optimize our store network.

“At the same time, we are actively investing for growth in new store projects,” Kennerley explained. “We expect to complete 30 major storing projects in 2025, focusing our investments in high-growth areas. We will continue to prioritize new store growth and expect these to be a meaningful contributor to our long-term growth model.”

Kroger introduces limited-time ice cream 

Recently, the retail company introduced its latest limited-time ice cream collection, Summer in a Pint, designed to last during the summer season.

The collection features four new ice cream and sherbet flavors: Italian Style Summer Fizz (a blood orange sherbet with candy clusters), Fireside Nights (toasted marshmallow ice cream with s’mores bits and an orange swirl), Sandy Shores (coconut ice cream with sweet and salty pretzel crunch), and Poolside Tan Lines (a blend of vanilla bean, chocolate, and coffee ice creams).

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