Kroger, one of the United States’ largest supermarket chains, announced plans to close approximately 60 stores nationwide over the next 18 months. The supermarket chain made the revelation in the company’s first-quarter 2025 sales report on June 20. According to a USA Today report, Kroger’s decision to close down the stores comes as a part of their effort to streamline their operations and improve efficiency amid recent layoffs and leadership transition.
Interim Kroger CEO explains decision
The closures represent roughly two per cent of Kroger’s 2,731 outlets nationwide and are expected to bring a ‘modest financial benefit’ as per the sales report.
Kroger’s interim CEO Ron Sargent, who assumed the role after the sudden resignation of longtime CEO Rodney McMullen in March following an internal ethics probe, confirmed the news of closure. Sargent, as per USA Today, said during a conference call that the stores which will be facing closure are ‘unprofitable’ and spread across the US.
Also read: Kroger under fire for ‘Lazy’ Juneteenth cakes: Watch
List of affected stores not released yet
The company has not released a list of the specific outlets which will be closed yet. Kroger stated that the employees at the impacted locations will be offered roles at the other nearby stores. A spokesperson Erin Rolfes told USA Today that Kroger would not be providing a list at the moment.
Sargent noted that the decision to close stores aligned with the company’s broader goal of reinvesting in customer experience with their 2025 capital expenditure budget projected at $3.6 billion to $3.8 billion. The investment will be diverted toward building new stores and upgrading the existing ones, including expansions and renovations.
Restructuring follows CEO resignation and two rounds of layoffs
{{/usCountry}}Sargent noted that the decision to close stores aligned with the company’s broader goal of reinvesting in customer experience with their 2025 capital expenditure budget projected at $3.6 billion to $3.8 billion. The investment will be diverted toward building new stores and upgrading the existing ones, including expansions and renovations.
Restructuring follows CEO resignation and two rounds of layoffs
{{/usCountry}}The news of closure followed two rounds of layoffs earlier this year which impacted non-store employees. The exact number of roles eliminated was not disclosed though.
Kroger, according to the report, had said at the time that the company was focusing on priority areas which support their go-to-market strategy and that the job cuts were made to ‘improve efficiency’.
Kroger is going through some big changes right now, including store closures, while they figure things out with their leadership. They have over 409,000 employees across the country, and while they look for a permanent CEO, Sargent has stepped in as the interim leader, the report added.
Even though they are cutting down on the number of stores, Kroger assured everyone that these moves are meant to help them stay stable and better serve customers at the stores that are staying open.
FAQs
Q: Why is Kroger closing stores?
A: Kroger is closing around 60 underperforming stores to improve efficiency and redirect resources toward enhancing the customer experience.
Q: Has Kroger released the list of store closures?
A: No, Kroger has not publicly shared which stores are closing at this time.
Q: What will happen to employees at the closing locations?
A: Kroger says all employees will be offered positions at other nearby store locations.
Q: Who is Kroger’s current CEO?
A: Ron Sargent is serving as Kroger’s interim CEO after Rodney McMullen resigned in March 2025.