Kroger Closes 60 Underperforming Stores Following Failed Albertsons Merger

Kroger has announced plans to close 60 underperforming stores over the next 18 months, representing around 2.2% of its total store count of 2,700 locations.

The company did not specify which locations would be closing, but said it had delayed shutting down these stores while attempting a merger with fellow grocery giant Albertsons.

However, the merger was ultimately called off in late 2024 after the Federal Trade Commission and various state attorneys general opposed it, citing concerns that it would stifle competition and lead to higher prices.

"There is a modest financial benefit to closing these stores. However, we intend to reinvest the efficiencies back into the customer experience," said Kroger Chief Financial Officer David Kennerley.

As part of its restructuring plans, Kroger also announced that it will open 30 new stores this year.

All employees at the closing locations will be offered jobs elsewhere in the company.

Kroger's stock value has surged in the last year, rising 48% since January 2024.