The Cincinnati‑based grocer says the closures—about 5 percent of its footprint—will free up cash to upgrade surviving stores amid a tough retail climate.
Kroger will close 60 supermarkets over the next year and a half, trimming roughly one in twenty of its 1,239 U.S. locations. The decision, announced alongside first‑quarter earnings, follows a $100 million impairment charge tied to the plan and reflects management’s push to concentrate resources on high‑performing stores.
Changing shopping habits and inflation pressures push Kroger toward store reduction strategy nationwide
Shoppers who grew comfortable ordering online during the pandemic now spend less time in the aisles and more time on apps, while rising labor and supply costs keep squeezing profit margins. Kroger, whose banner stretches across 16 states from Texas to Michigan, believes shuttering unprofitable units will help it compete with discount chains and digital rivals.
So, what does this mean for customers in Indiana or Georgia? States where Kroger has a significant presence likely to feel the impact:
- Indiana
- Kentucky
- Texas
- Tennessee
- Michigan
- Georgia
- Ohio
- Mississippi, Missouri, Louisiana
- Alabama, Illinois, South Carolina
- Arkansas, Virginia, West Virginia
The company has not yet released a site‑by‑site list, but analysts expect the closures to cluster in markets with heavy overlap or declining foot traffic.
Savings from closures will finance tech upgrades, fresher produce and e‑commerce expansion in remaining locations
Kroger reported first‑quarter 2025 sales of $45.1 billion—slightly below the $45.3 billion recorded a year earlier. Management insists the restructuring will ultimately strengthen operations by redirecting capital toward automation, delivery infrastructure and store remodels.
| Metric (Q1 2025) | Amount |
|---|---|
| Net sales | $45.1 billion |
| Year‑over‑year change | –0.4 percent |
| Impairment charge | $100 million |
| Stores slated for closure | 60 |
“We expect a modest financial benefit once the dust settles,” spokesperson Erin Rolfes said, adding that annual guidance remains intact. Still, industry watcher Michael Ryan warns that traditional grocers must “cut to grow” as e‑commerce reshapes the checkout lane.
Employees offered transfers but details on relocation aid and wage protections remain unclear for now
Roughly 7,000 workers could be affected, yet Kroger says every associate will be eligible to move to a neighboring store. Looking for your local job posting already? Hold on—human‑resources policies have not been finalized, and labor groups are pressing for guarantees on pay continuity and travel assistance.
Kroger’s downsizing underscores a broader retail reset: trim the real estate, invest in omni‑channel convenience, and chase shoppers wherever they click or swipe. Consumers should keep an eye on company updates over the coming months, compare online prices, and—if their neighborhood store lands on the list—scout alternate locations early.