CINCINNATI, August 16, 2025 — Kroger, the nation’s largest supermarket operator by revenue, announced this week that it will close approximately 60 underperforming stores across the United States over the next 18 months. The move, which begins with closures in August, is part of a broader effort by the company to streamline operations, reinvest in its more profitable locations, and position itself for sustained long-term growth.
The first wave of shutdowns is already underway, affecting locations in Alpharetta, Georgia; Bloomingdale and Northbrook, Illinois; Charlottesville, Virginia; and Gassaway, West Virginia. More closures are planned for September and October, with additional stores in Georgia, Tennessee, and Virginia set to be phased out. While the closures will impact communities that rely on these stores for groceries and daily essentials, Kroger officials said the decision was necessary to maintain the company’s overall financial health.
The company expects to record an impairment charge of about $100 million tied to the store closures, but executives stressed that this one-time expense will not affect Kroger’s full-year earnings guidance. Instead, leadership emphasized that savings generated by the closures will be directed into capital improvements for the company’s remaining stores. Kroger has earmarked between $3.6 billion and $3.8 billion in capital expenditures this year, with a focus on renovating existing locations, expanding high-performing stores, and investing in new openings. In fact, the company still plans to launch roughly 30 new store projects in 2025, with an even greater number scheduled for 2026.
For employees, Kroger has pledged to cushion the blow of the closures by offering associates opportunities to transfer to other nearby stores. The company currently employs approximately 410,000 people across its more than 2,700 supermarkets nationwide, and interim CEO Ron Sargent said retaining staff remains a priority during this transition. “We recognize the impact these decisions have on our associates and communities,” Sargent explained. “By consolidating our resources, we are creating a stronger, more resilient Kroger that will continue to serve customers for generations to come.”
The announcement comes as the grocery industry continues to navigate a shifting economic landscape. Rising labor expenses, higher costs for goods, and evolving consumer preferences have put pressure on traditional supermarkets. At the same time, the pandemic-era surge in online grocery shopping has permanently reshaped the way many Americans buy food. Kroger has seen notable growth in its digital operations, reporting a 15 percent increase in e-commerce sales year-over-year. The company also highlighted strength in its pharmacy division, fresh food offerings, and private-label brands—areas that will continue to receive targeted investment.
Despite a slight decline in overall quarterly revenue, dropping from $45.3 billion to $45.1 billion, Kroger reported a 3.2 percent increase in same-store sales when excluding fuel. Encouraged by this momentum, executives raised the company’s forecast for identical-store growth to between 2.25 and 3.25 percent for the full year. Analysts have noted that this performance underscores Kroger’s ability to weather a challenging retail environment while still capturing demand in key categories.
The decision to close stores also reflects a strategic reset following the collapse of Kroger’s proposed merger with rival grocer Albertsons. During merger proceedings, Kroger temporarily paused its annual store performance evaluations, which are typically used to determine which locations meet long-term profitability standards. With the merger now abandoned, the company has resumed these reviews and identified stores that no longer fit its strategic vision.
Industry experts believe Kroger’s actions align with a broader trend among major retailers to refine store footprints and concentrate resources in markets where they have the strongest competitive edge. Rather than focusing solely on expanding scale, companies like Kroger are working to integrate more efficient digital systems, improve supply chain resiliency, and emphasize higher-margin categories such as fresh groceries and exclusive store-brand products.
While communities losing stores will face challenges, Kroger’s decision signals a recalibration rather than a retreat. By closing locations that consistently underperform, the company hopes to boost efficiency and reinvest in areas that deliver stronger returns. For customers, that could mean more modernized stores, expanded selections, and greater integration between in-store and online shopping.
Ultimately, Kroger’s approach demonstrates the balancing act faced by many in the retail sector: adapting to consumer shifts and economic headwinds without losing sight of long-term profitability. With billions committed to reinvestment and a renewed focus on growth areas, Kroger is betting that a leaner, more strategically aligned network of stores will secure its position as a dominant player in the highly competitive U.S. grocery market.
