Why is Kroger closing over 60 stores nationwide? Reasons explained

The supermarket giant Kroger announced on Friday, June 20, 2025, that it will close approximately 60 underperforming stores across the US over the next 18 months, according to USA Today.

This announcement was made during the company's first-quarter 2025 earnings call, held on Friday. Along with this announcement, a Q1 earnings report and press release were also released.

The reason behind the closing of the Kroger stores includes improving efficiency, boosting profitability, reinvesting in better locations, and enhancing customer experience.

Why is Kroger closing around 60 stores?

Along with the announcement of the closing of around 60 stores, the reasons were also explained during its Q1 2025 earnings announcement and investor call on Friday.

Interim CEO Ron Sargent explained the reasons behind the closure of the stores. He said that they were closing the unprofitable stores across the country and that this closure was being done to position the company for future success. As reported by The Sun, he said:

"We don't take these decisions lightly, but this will make the company more efficient and Kroger will offer roles in other stores to all associates currently employed at affected stores.''

Sargent didn't exactly mention which stores they were planning to shut in the next 18 months. He then also shared that although they are closing many stores, they are also working on opening new stores across the country by the end of 2025. He said:

''Looking forward, we expect to accelerate new store openings in 2026 and beyond in high growth geographies, growing our overall square footage and adding new jobs.''

On Friday, Sargent also mentioned that the company plans to spend $3.6 to $3.8 billion this year to improve its business. The money will be used in building new stores, renovating the older ones, and also to increase the size of the current stores.

According to the Cincinnati Enquirer, Sargent also said that although the company is witnessing a $100 million impairment charge, they believe that closing the underperforming stores will help them with their finances in the long run. The company plans to reinvest the money saved to enhance customer experience.

Sargent said that the company will improve its grocery delivery service soon. He said that the company is working on making orders more accurate and faster. He said:

"To keep improving the customer experience, we're working to deliver more accurate orders faster and reduce pickup wait times.''

Earlier this year, the company announced that it would be spending $130 million to improve its stores in the Greater Cincinnati and Dayton area, including opening two new stores in Northern Kentucky.

Kroger is also looking for a new CEO, after Rodney McMullen resigned in March 2025.

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