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Kroger is closing 60 underperforming stores and cutting nearly 1,000 corporate jobs after a failed $25 billion merger with Albertsons.
Interim CEO Ron Sargent describes the closures as overdue, aiming to simplify the organization and improve profitability.
The move has sparked backlash from unions and local officials, who argue it prioritizes profits over community needs.
Kroger plans to reinvest savings into improving store footprints and competitive pricing, with 30 store projects planned this year.
The closures reflect a broader trend in retail, with other chains like At Home and Claire’s also reducing their physical presence.
Following its failed $25 billion merger with Albertsons, grocery giant Kroger is closing approximately 60 underperforming stores and cutting nearly 1,000 corporate jobs in a push to boost its profitability.
An overdue correction: Interim CEO Ron Sargent is casting the shutdowns as overdue, noting that the company’s annual store review was paused during the merger attempt. "Unfortunately, today, not all of our stores are delivering the sustainable results we need," Sargent said, adding that the job cuts will "simplify the organization."
The human cost: The move triggered immediate backlash from unions and local officials, who accuse the company of prioritizing Wall Street over its communities. "Kroger’s closures put profit over people, plain and simple,” said UFCW 3000 President Faye Guenther, while other union leaders argued the shutterings will limit food access in rural areas.
A strategic answer: Kroger’s answer to the outcry is to frame the cutbacks as a reinvestment. The company argues the savings will be funneled back into improving its store footprint and making prices more competitive, pointing to plans for 30 store projects this year and accelerated new openings in 2026.
Kroger is navigating a financial and public relations minefield, trying to convince investors its cost-cutting will lead to growth while facing charges that it's harming the communities it serves. Kroger isn’t the only retailer struggling with its physical footprint. Home goods chain At Home is closing 26 stores this month, while fashion retailer Claire’s could shutter all 2,300 of its locations if it fails to find a buyer after its second bankruptcy filing since 2018.
