Kroger, the parent company of various grocery chains including Ralphs and Food 4 Less, announced plans to permanently close 60 stores over the next 18 months, as detailed in its recent earnings report. While specific locations have yet to be disclosed, the closures are expected to impact stores primarily in California.
A Kroger spokesperson indicated that, despite the uncertainty surrounding which individual stores will close, affected employees would have the opportunity to transition into other roles within the company. The decision to close stores is estimated to generate a $100 million loss for Kroger, although the company expects to achieve a “modest financial benefit” in the long term, with plans to reinvest savings into enhancements for customer experiences.
This announcement comes amid significant changes for Kroger. Earlier this year, former CEO Rodney McMullen resigned following an internal investigation, and Ronald Sargent is currently serving as interim CEO. The company has also faced challenges from a failed merger with Albertsons, which was blocked by federal courts, leading to an ongoing legal battle over contract disputes.
The closures reflect broader changes within Kroger as it navigates its strategic direction in a competitive grocery landscape. Customers and employees alike may be hopeful that the company’s plans for reinvestment will lead to improved store experiences in the future.