Massive Grocery Store Chain Kroger Announces 60 Closures
Kroger is ranked as the third-largest supermarket chain in the United States, behind only Walmart and Costco.
Thus, many Americans have come to rely on Kroger's grocery stores in their hometowns.
However, many communities are about to lose their grocery store.
Kroger announced on June 20 that it will close 60 stores across 16 states, which will amount to about 5 percent of its 1,239 "Kroger-branded grocery stores," CBS News reported.
"In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months," Kroger wrote in a June 20 news release.
"As a result of these store closures, Kroger expects a modest financial benefit. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance. Kroger will offer roles in other stores to all associates currently employed at affected stores," the release says.
Kroger's sales for the period fell to $45.1 billion compared to $45.3 billion.
Chairman and CEO Ron Sargent painted a forward-looking outlook in the release.
"Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience," he said.
It's not clear where the closing stores are located. The Cincinnati-Dayton area is not among them.
According to Supermarket News, Kroger is "seeking to bounce back from its failed bid to merge with Albertsons Cos. late last year and the loss of its chairman and CEO earlier this year."
The site reported that Kroger is planning to open some new stores in 2025 while closing the 60 locations that are deemed "underperforming."
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