Kroger, the Cincinnati-based grocery giant, announced plans to close approximately 60 stores over the next 18 months. This decision, revealed in a first-quarter earnings report, aims to streamline operations and enhance efficiency, according to Interim CEO Ron Sargent. The closures will result in a $100 million impairment charge but are expected to provide a modest financial benefit long-term.
The closures come after the collapse of a proposed merger with rival Albertsons, which led to legal disputes between the two companies. Kroger has not disclosed which specific locations will be affected, but it assured that all employees from the closing stores will be offered positions at other locations. The company operates around 1,239 stores across 16 states and employs nearly 410,000 associates.
Fox Business reported that despite the closures, Kroger's profits exceeded expectations, and the company plans to reinvest savings into improving customer experience. Sargent noted that the company is benefiting from increased home meal consumption and has boosted sales through price cuts and promotions of private label products.
Kroger's stock rose nearly 10% following the announcement, reflecting investor confidence in the company's strategic adjustments.