Kroger closing 60 stores across the United States has sent ripples through communities and the grocery industry. Announced on June 20, 2025, this decision marks a strategic shift for the supermarket giant as it aims to streamline operations and boost profitability. The closures, set to occur over the next 18 months, come amid a challenging retail landscape and a failed merger with Albertsons. Shoppers, employees, and investors are left wondering what this means for their local stores and the future of Kroger. Let’s dive into the details of this major move, why it’s happening, and what it signals for the grocery chain’s next steps.
Why Is Kroger Closing 60 Stores?
Kroger’s decision to shutter 60 stores stems from a need to optimize its store network. Interim CEO Ron Sargent revealed during a June 2025 earnings call that not all stores are delivering sustainable results. The company identified underperforming locations as drags on overall profitability. By closing these stores, Kroger expects a modest financial benefit, which it plans to reinvest into enhancing the customer experience at its remaining 2,700 stores nationwide. This move follows a period of distraction caused by a failed $24.6 billion merger with Albertsons, which a federal judge blocked in December 2024, citing reduced competition and potential price increases.
The closures also reflect broader industry pressures. Competitors like Walmart and Costco are gaining grocery market share, while inflation and tariff uncertainties push shoppers toward value-driven options. Kroger’s leadership sees this as a chance to refocus on high-performing stores and accelerate new store openings in 2026. While specific store locations remain undisclosed, a spokesperson confirmed no closures are expected in the Cincinnati-Dayton region, a key market for the company.
How Will Kroger Closing 60 Stores Impact Employees?
A major concern for shoppers and workers alike is the fate of employees at the affected stores. Kroger has committed to offering alternative roles at other locations to all associates impacted by the closures. With nearly 410,000 employees serving 11 million customers daily, the company emphasizes maintaining strong employee relations during this transition. This promise aims to soften the blow for workers, especially in communities where Kroger is a significant employer. However, the lack of clarity on which stores will close leaves many anxious about their job security.
- Key Employee Impacts:
- All affected workers will be offered jobs at other Kroger stores.
- No immediate layoffs are planned, preserving workforce stability.
- Kroger’s focus on reinvesting savings may lead to improved store conditions for remaining employees.
This approach contrasts with recent labor tensions, including a worker walkout at four Kroger stores in early June 2025, driven by demands for better wages and benefits. While those closures were temporary, they highlight the challenges Kroger faces in balancing cost-cutting with employee satisfaction.
Financial and Strategic Implications
Kroger closing 60 stores is part of a broader effort to improve financial performance. The company reported a $100 million impairment charge in its first-quarter 2025 earnings due to these planned closures. Despite this, Kroger posted solid results, with $45.1 billion in sales and a 3.2% increase in identical store sales excluding fuel. The grocer also raised its full-year sales growth forecast to 2.25%–3.25%, signaling confidence in its core business. By shedding underperforming stores, Kroger aims to boost its return on invested capital and fund enhancements like lower prices and better e-commerce offerings.
The closures come at a pivotal moment. Kroger’s e-commerce sector, including curbside pickup and delivery, is growing but not yet profitable. The company is also navigating a leadership transition after former CEO Rodney McMullen’s resignation in March 2025 due to ethical concerns. Interim CEO Ron Sargent is steering Kroger toward a leaner, more competitive future while a search for a permanent CEO continues.
What’s Next for Kroger and Shoppers?
As Kroger closing 60 stores unfolds, shoppers may notice changes in their local grocery landscape. The company plans to reinvest savings into improving store experiences, such as modernizing facilities and expanding digital offerings. Kroger’s e-commerce sales surged 15% in Q1 2025, showing strong demand for online shopping. Additionally, the grocer is investing $3.6–$3.8 billion in 2025 to build new stores and renovate existing ones, including two new locations in Northern Kentucky.
For communities losing stores, the impact could be significant, especially in areas where Kroger is the primary grocery option. Customers may turn to competitors like Walmart, Target, or regional chains like Publix. Kroger’s pledge to maintain its investment-grade debt rating and strong cash flow suggests it’s positioning itself for long-term growth, but the immediate effects of these closures will vary by region.
- Kroger is closing 60 underperforming stores over 18 months to streamline operations.
- Employees will be offered roles at other stores, with no layoffs planned.
- Savings will be reinvested to enhance customer experiences and e-commerce.
- The move follows a failed Albertsons merger and increased competition.
- Kroger remains financially strong, raising its 2025 sales forecast.
Looking Ahead
Kroger’s decision to close 60 stores reflects a strategic pivot in a fiercely competitive grocery market. By focusing on high-performing locations and investing in digital growth, the company aims to stay relevant to cost-conscious shoppers. While the closures may disrupt some communities, Kroger’s commitment to its workforce and customer experience could pave the way for a stronger future. As the grocery giant navigates these changes, its ability to adapt will determine its success against rivals.
Stay informed about Kroger’s store closures and how they might affect your local shopping options. Check your local store’s status and explore alternative grocery options in your area to ensure you’re prepared for any changes.