Kroger to Close Over 60 Stores Within 18 Months

Kroger, one of the largest grocery store chains in the US, plans to close around 60 locations over the next 18 months, which is approximately 5% of its total stores. This decision comes after a merger with rival Albertsons failed to materialize.

Affected employees will be offered positions at nearby stores, and the company will use the money saved to invest in "customer experience" at the remaining locations.

The closures are expected to provide a "modest financial benefit" in the long term, although Kroger did not disclose which specific stores would be closing. The company has around 1,200 stores across 16 US states, with Indiana housing 103 of those locations.

Kroger's sales have been boosted by consumers cutting back on dining out and the company's focus on offering lower prices and promotions. In an earnings call, interim CEO Ron Sargent said that customers are "eating more meals at home."

The grocery chain has also seen success with its private label products, which are often cheaper than name brands. Sales of these products have grown faster than sales of national brands for seven consecutive quarters, according to Sargent.

Kroger plans to launch 80 new protein-rich products in the coming months to capitalize on consumers' growing appetite for this nutrient. As for the closures, Sargent said that "not all of our stores are delivering the sustainable results we need" and that the company had not reviewed its locations during the merger process as it usually does every year.