Kroger announced last Friday that it plans to close 60 stores in the next 18 months. The company added that the closures would have a “modest financial benefit” but the gains realized would be reinvested in efforts to improve the customer experience.
Kroger, which is recovering from a failed two-year effort to merge with Albertsons, said it plans to continue aggressive store remodeling and to accelerate store openings in 2026.
According to Interim Chairman and CEO Ron Sargent, customers remain cautious in their spending, and they are making more frequent shopping trips but spending less per trip. They are also buying more items in bulk and cutting back on discretionary items.
Sargent added that ecommerce remains unprofitable but its returns have been improving at a faster rate. Interestingly, Kroger said that given its high degree of domestic sourcing, it has not seen a meaningful impact from tariffs.
Kroger operates over 2,700 supermarkets across 35 states and Washington, D.C.
