Kroger will shutter around 60 underperforming stores across the U.S. over the next 18 months as part of a broader strategy to sharpen its operational focus and reinvest savings into customer experience—such as delivery upgrades and private-label expansions. Although sales grew 3.2% in Q1 and e-commerce rose 15%, an impairment charge of $100M reflects this plan’s cost upfront. The closures are being balanced with 30 new major store openings in 2025, with more planned in 2026, signaling Kroger’s shift toward efficiency and growth. Keywords: Kroger store closures, e‑commerce surge, Q1 sales growth.
Why Kroger is closing 60 stores
Kroger revealed that it’s planning to shutter around 60 underperforming supermarkets over the next 18 months—approximately 5% of its branded locations—as part of a strategic optimization of its national footprint. Despite booking a $100 M impairment charge, the company expects modest financial relief and will reinvest savings toward enhancing the shopping experience and accelerating growth initiatives.
Strong Q1 2025 performance
In the quarter ending May 24, Kroger posted identical-store sales growth of 3.2%, exceeding estimates. These results were bolstered by a robust 15% rise in e-commerce sales, pharmacy gains, and strong performance of its private-label “Our Brands”
Forward‑looking growth plans
To balance the streamlining, Kroger confirmed it will complete 30 major store projects in 2025 and accelerate new store rollouts in 2026, especially in high-growth markets. This dual approach reflects its commitment to maintain and expand where returns are strong.
Strategy Reinforcement
Interim CEO Ron Sargent emphasized the importance of merging strong brick-and-mortar presence with growing e-commerce demand. The company is reinvesting efficiencies into enhancing its Kroger Express Delivery, pickup services, and private-label offerings—efforts Kroger believes will strengthen long-term profitability.
Guidance Updates
Kroger has increased its full-year same-store sales guidance to a 2.25%–3.25% range (from 2%–3%) and reaffirmed annual profit expectations as it absorbs the one-time impairment without altering its financial outlook.
Impact on Employees and Customers
Kroger has committed to offering roles to staff affected by the closures. Customers in impacted areas may face longer travel distances, but Kroger expects overall service improvements—such as faster delivery, better in-store experience, and lower pricing—to soften disruption.
Broader Market Context
With inflation hitting dining costs harder than groceries, consumers are turning back to supermarkets. Kroger’s stock has responded well—surging ~9% on the announcement amid macroeconomic pressure—and analysts view the closures as part of a broader “retail sector rationalization” trend
