Following the failure of its merger with rival Albertsons, Kroger has announced it will close 5% of its grocery stores by the end of 2026. The company stated that affected employees will be offered positions at nearby stores.
On an earnings call, Interim CEO Ron Sargent said the company will take a $100 million impairment charge because of the closures, but that this will lead to a “modest financial benefit” in the long run.
Sargent explained that the closures result from “not all of our stores are delivering the sustainable results we need.”
The company’s announcement follows its recent gains, with shares closing nearly 10% higher on Friday after the release of its first-quarter 2025 earnings, which totaled $45.1 billion in net sales.
Sargent told investors, “We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience. Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders.”
Company CFO David Kennerley stated, “We continue to believe that our strategy focusing on fresh, Our Brands and eCommerce will continue to resonate with customers and our resilient model positions us well to navigate the current environment.”
After the closures, Kroger will continue to uphold its full-year financial guidance, which includes adjusted operating profit and earnings per share.
Prior to the store closure announcement, Kroger’s retail chain consisted of 2,730 stores, 1,712 fuel centers, and 2,273 pharmacies.
By CEO NA Editorial Staff
