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Kroger Closing Stores: Reasons Behind the Decision

Kroger logo is seen on the shop in Streator, United States on October 15, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Image Credit: NurPhoto via Getty Images

Kroger, known as one of the largest grocery chains in the United States, is currently undergoing significant transformations, which include the impending closure of 60 stores across the nation. This strategic decision is influenced by several factors, including recent changes in leadership, evolving consumer behaviors, and a renewed commitment to optimizing operations and enhancing growth potential. As the grocery landscape continues to shift, Kroger is adapting to ensure it remains competitive and relevant in a fast-evolving marketplace.

To gain deeper insights into the specific store closures and their implications for Kroger’s future, continue reading below. We’ll explore the reasons behind these decisions and what they signify for customers and employees alike.

Discover Which Kroger Locations Are Scheduled for Closure

Kroger has revealed plans to shut down approximately 60 stores throughout the United States over the next 18 months. While the company has not yet provided a comprehensive list of the locations that will be impacted, these closures represent around 2% of its extensive network of over 2,700 stores nationwide. This move reflects Kroger’s strategic approach to streamline its operations while addressing the changing demands of its customer base.

Understanding the Reasons Behind Kroger’s Store Closures

The decision to close 60 stores is a calculated part of Kroger’s broader strategy aimed at enhancing operational efficiency and optimizing its overall performance. Although the company anticipates a $100 million impairment charge as a consequence of these closures, it has expressed confidence in reinvesting those funds into upgrading its remaining locations and significantly improving the customer experience. This proactive approach indicates Kroger’s commitment to long-term sustainability and growth.

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In its recent earnings report, Kroger acknowledged the planned closure of approximately 60 stores, which entails a $100 million impairment charge. The company stated, “As a result of these store closures, Kroger expects a modest financial benefit.” Interim CEO Ron Sargent elaborated on the situation, stating, “To position our company for future success, this morning, we announce plans to close approximately 60 stores over the next 18 months… We don’t take these decisions lightly, but this will make the company more efficient.” Importantly, he reaffirmed Kroger’s commitment to expansion, announcing plans to complete 30 major store projects by 2025, with additional projects anticipated for 2026.

In a significant leadership change, former CEO Rodney McMullen resigned in March 2025 following a board investigation that concluded his personal conduct violated the company’s business ethics policy, albeit without any direct implications for associates or operations. Notably, McMullen forfeited over $11 million in bonuses and stock options upon his resignation, marking a substantial shift in Kroger’s leadership as the company seeks to navigate its future challenges and opportunities.

Clarifying Kroger’s Business Status Amid Store Closures

Rest assured, Kroger is not going out of business. Despite the closure of 60 underperforming stores, the company remains financially robust and focused on its growth trajectory. According to Reuters, Kroger’s same-store sales experienced a remarkable increase of 3.2% in Q1 2025, surpassing expectations, and the company has subsequently raised its full-year sales forecast to a range of 2.25–3.25%, up from a previous estimate of 2–3%. This positive trend highlights Kroger’s resilience and adaptability in a competitive retail environment.

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Reviewing Kroger’s 2025 Product Recalls Due to Listeria Concerns

In 2025, Kroger initiated a recall of FreshRealm-manufactured ready-to-eat chicken fettuccine Alfredo meals sold under the Home Chef label, following a multistate outbreak of Listeria. The affected products, identifiable by USDA inspection codes EST. P-50784, EST. P-47770, or EST. P-47718, came to light during a March inspection and were subsequently linked to 17 reported illnesses, including three fatalities and one pregnancy loss across 13 states, as reported by The New York Times. This recall underscores Kroger’s commitment to food safety and consumer health.

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Sarah Parker is a research analyst and content contributor with a strong interest in business strategy, organizational behavior, and social development. With a background in sociology and public policy, she focuses on exploring the intersection between research and real-world application. Sarah regularly contributes articles that bridge academic insights and practical relevance, aiming to foster critical thinking and innovation across sectors.