Kroger, the major supermarket chain headquartered in Cincinnati, Ohio, is set to close approximately 60 of its grocery stores across the United States over the next year and a half in a strategic move to enhance operational efficiency.
The announcement was made during a recent corporate earnings call, although specific locations for the closures have not yet been disclosed. The closures will be dispersed nationwide, and the company has assured that impacted employees will be offered positions at different store locations.
Interim Chairman and CEO Ronald Sargent expressed confidence in the decision, noting that transferring sales from closed stores to others is expected to bolster profitability.
In parallel, Kroger plans to introduce at least 30 new stores within this year and aims to further expedite store openings in “high-growth geographies” in the upcoming year.
A request for additional details regarding the closures was submitted, awaiting Kroger’s response.
Kroger holds the title of the nation’s largest supermarket chain, currently operating 2,731 stores in 35 states and the District of Columbia. The company’s retail presence spans several brand names, including Smith’s, Ralphs, King Soopers, and Fred Meyer.
Sargent highlighted that while Kroger typically reviews individual store performances annually, closures were postponed amid its two-year merger attempt with Albertsons. This merger, initially valued at $24.6 billion, was called off last year after judicial intervention over competitive concerns.
The closures come amid ongoing labor disputes within the company. The United Food and Commercial Workers union has raised issues regarding chronic understaffing in stores as a significant concern. Union members particularly in Southern California have initiated picketing at a Ralphs in Los Angeles, with earlier strikes occurring at King Soopers locations in Colorado.