Kroger to Close 60 Stores by End of 2026 Despite Surpassing Profit Expectations

Kroger, one of the nation’s largest grocery chains, announced Friday it will close approximately 60 stores over the next 18 months, a striking decision that comes even as the company reported stronger-than-expected first-quarter profits for 2025.

The news was disclosed in Kroger’s Q1 earnings report, accompanied by an investor call in which company leaders detailed the rationale behind the closures. Despite maintaining a workforce of roughly 410,000 associates across the United States and generating $45.1 billion in sales for the quarter, the company is moving forward with a broad consolidation strategy aimed at improving operational efficiency and positioning itself for future growth.

Efficiency Over Expansion

Ron Sargent, a director on Kroger’s board, addressed the closures in Friday’s earnings call, saying the company had conducted a thorough review of its operations to identify stores that were underperforming and no longer aligned with its long-term growth strategy.

“Unfortunately, today, not all of our stores are delivering the sustainable results we need,” Sargent said. “To position our company for future success, this morning, we announced plans to close approximately 60 stores over the next 18 months.”

Kroger has not released details about which locations will be shuttered, citing internal evaluations still underway. A spokesperson for the company told Fox News Digital that information on specific store closures would be shared at a later date.

The company said it anticipates a $100 million impairment charge related to the shutdowns, but executives emphasized that the move is expected to yield a “modest financial benefit” over time. The cost savings will be reinvested into areas intended to enhance the customer experience.

Profits Up, Sales Slightly Down

While Kroger’s total company sales declined slightly—from $45.3 billion in the same quarter last year to $45.1 billion this quarter—the company still managed to beat analysts’ expectations. The report indicated strong performance in high-margin sectors like pharmacy and private-label products, which helped offset softer demand in other areas.

“Despite continued inflationary pressures and shifting consumer spending habits, we exceeded our earnings expectations in Q1,” Sargent noted. “This performance underscores the strength of our diversified model and disciplined approach to cost management.”

Kroger has been navigating a highly competitive and evolving retail landscape, where digital grocery services, inflation, and consolidation trends continue to shape consumer behavior and business priorities.

No Layoffs, But Uncertainty for Workers

One bright spot for employees: Kroger confirmed that all staff members working at the soon-to-be-closed locations will be offered roles at nearby stores. While this signals the company’s commitment to minimizing job losses, the transition could still disrupt thousands of employees and their families.

“We’re committed to taking care of our associates,” the company stated. “All associates at impacted locations will have the opportunity to transfer to other Kroger stores in the area.”

The company did not provide an estimate of how many employees would be affected by the closures.

Reinvestment Into the Customer Experience

Kroger emphasized that cost savings from the closures will be reinvested into the business to drive innovation, expand digital capabilities, and improve in-store service. The grocery giant has recently made sizable investments in its online ordering systems and delivery infrastructure, as it looks to keep pace with growing consumer demand for convenience.

The company’s strategy appears focused on channeling resources away from lagging locations and into higher-growth opportunities, including modernization efforts, loyalty programs, and store redesigns.

“We want to make sure every dollar we save is felt by our customers—whether that’s through better prices, faster service, or a more seamless shopping experience,” said Sargent.

A Company in Transition

The store closures mark the latest development in what has already been a transformative year for Kroger. The company remains embroiled in a high-stakes legal battle over its proposed merger with Albertsons, another major U.S. grocery chain. Regulators and state attorneys general have challenged the deal, raising concerns about consumer choice and antitrust violations.

While the fate of the merger remains uncertain, Kroger’s decision to slim down its store footprint may be part of a broader strategic realignment designed to streamline operations ahead of any potential regulatory outcomes.

What Shoppers Should Expect

For now, most customers are unlikely to notice immediate changes. With thousands of locations nationwide, the closure of 60 stores represents a small percentage of Kroger’s total retail footprint. However, in communities where a store is marked for closure, residents may face increased travel times or disruptions in access to affordable groceries and pharmacy services.

Local governments and union representatives are expected to closely monitor developments, especially in areas where Kroger is a primary or sole food retailer.

As the company moves forward with its consolidation plan, more details about affected locations and transition timelines are expected to emerge in the coming months.

For many, the news highlights the growing tension between corporate profitability and community access in an industry that remains central to American life. With profits still strong, Kroger’s decision underscores a shifting business philosophy—one that prioritizes long-term efficiency over geographic expansion, even in a time of economic uncertainty.