The Kroger Co. (NYSE: KR) announced plans to close 60 underperforming stores over the next 18 months.
Kroger operates 2,730 stores in 35 states and the District of Columbia under multiple brands. In a call with financial analysts after the release the Cincinnati-headquartered company’s latest quarterly report, Chairman and Interim CEO Ronald Sargent stated the decision to shutter stores had been paused during the failed merger with Albertsons Cos. (NYSE: ACI).
“We’re simplifying our business and reviewing areas that will not be meaningful to our future growth,” Sargent said. “Unfortunately today, not all of our stores are delivering the sustainable results we need. It’s also important to note, we paused our annual store review during the merger process.”
Sargent added the company did not “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.” However, Sargent also said Kroger was “actively investing for growth in new store projects. 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.”
