Summary
Kroger is closing some of its stores across the United States after its planned merger with Albertsons was blocked. The company plans to close around 60 underperforming stores over 18 months. This decision is part of Kroger's efforts to improve efficiency and reinvest savings into customer service.
Key Facts
- Kroger's merger with Albertsons was blocked due to regulatory issues.
- The company plans to close approximately 60 stores across the U.S. over 18 months.
- About 5% of Kroger's 1,200 stores will be affected by the closures.
- Kroger expects to gain modest financial benefits from these closures, with a $100 million impairment charge recorded.
- Employees of closed stores will be offered roles at other locations.
- Interim CEO Ron Sargent stated that closures aim to make the company more efficient.
- Kroger plans to increase new store openings starting in 2026.
- The company is also laying off 1,000 corporate employees to improve efficiency.
