Kroger announces closure of 60 stores nationwide: What we know so far about the locations
Kroger has announced plans to close approximately 5 percent of its stores over the next 18 months. Here’s what we know so far about the supermarket giant’s decision.
Kroger, one of the largest supermarket chains in the U.S., with more than 1,800 locations across 16 states, announced last week that it will be closing approximately 60 stores over the next 18 months. The Cincinnati-based company sparked controversy last year when executives introduced digital price tags that can be updated remotely with minimal manual labor.
Consumer advocates raised concerns that this technology could allow the company to quickly raise prices on high-demand items—like ice cream on a hot day—without sufficient oversight. While potentially beneficial for Kroger’s bottom line, the move prompted inquiries from lawmakers on Capitol Hill, including Massachusetts Senator Elizabeth Warren.
It’s now more convenient for the store to change the price—how often do they take advantage of that? Does the price surge on a hot day? By how much?
— Elizabeth Warren (@ewarren) August 9, 2024
Why are the stores closing?
According to the company’s latest SEC filings, the closures are expected to deliver a “modest financial benefit,” which executives say will be reinvested “back into the customer experience.”
As part of the announcement, Kroger has issued a $100 million impairment charge related to the affected locations. This suggests that the value of these properties has declined significantly from their original estimates.
The same SEC report indicates that the company is spending approximately 1.4 percent more on rent than it did in 2024, and these closures are likely to reduce this figure. This comes at a time where the company is reporting a small increase in its gross margin, which in the first quarter of 2025 stood at 23 percent.
What will happen to the employees?
Kroger stated that employees at the closing stores will be offered positions at other locations. As a result, the company does not anticipate a major shift in labor costs.
Which locations will be closed?
The specific store locations have not yet been disclosed. However, the 60 closures represent about 5% of Kroger’s total store count. States with the highest number of Kroger locations include Indiana, Kentucky, Texas, Tennessee, and Michigan.
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