Kroger is making headlines again but this time, it’s not about new launches or fresh food innovations. The grocery giant has announced plans to close 60 underperforming stores across the United States in 2025. This major shift is part of a broader strategy to streamline operations, boost profitability, and focus on areas showing stronger customer demand.
Kroger’s decision to shut down 60 stores comes as part of its latest business review following a challenging year. The company cited underperformance, shifting consumer trends, and strategic realignment as key reasons behind the closures.
In its Q1 2025 earnings call, Kroger revealed that these store locations no longer meet performance benchmarks. Rather than continuing to invest in lagging markets, Kroger aims to reallocate resources to more profitable and high-growth regions, especially in fresh produce, pharmacy, and e-commerce.
While the company has not yet released the full detailed list, multiple reports confirm that stores will be closed across several states including:
Texas – Confirmed closures in McKinney and Dallas
Ohio – A handful of suburban stores near Cincinnati and Columbus
Georgia – Atlanta area stores under review
California – Some Los Angeles and Bay Area locations
Indiana, Michigan, and Kentucky – Expected to see a few shutdowns
Customers in these areas are already seeing “store closing” signs as preparations begin.
Kroger plans to close all 60 locations gradually through the end of 2026. The process began in Q2 2025, with waves of closures scheduled every quarter. This staggered timeline gives affected customers and employees time to adjust.
Importantly, this isn’t a full-scale retreat. Kroger emphasized that this move is about optimization, not downsizing the entire business. In fact, the company has also announced plans to open 30 new stores in high-performing regions later this year.
One of the most significant questions surrounding the closure announcement is: What about the workers?
Kroger has confirmed that no mass layoffs are planned. Instead, the company is offering all affected employees transfers to nearby Kroger stores or affiliated chains like Ralphs, Fred Meyer, or King Soopers.
This is part of Kroger’s commitment to maintaining workforce stability while realigning its store portfolio. However, labor unions and employee advocates are watching closely to ensure that promises are kept.
Despite the initial shock, Wall Street responded positively. Kroger shares jumped nearly 9% after the announcement. The reason? Investors see the closures as a sign of disciplined cost management and long-term profitability.
Kroger has taken a $100 million impairment charge related to the closures, but executives say the move will ultimately improve financial performance by eliminating losses from underperforming locations.
In the same earnings report, Kroger raised its guidance for 2025, now projecting same-store sales growth of 2.25% to 3.25%, up from its previous range.
With these closures, Kroger is signaling a shift. The company wants to double down on:
Fresh produce and prepared foods
Online grocery delivery and curbside pickup
In-store pharmacies, which saw significant growth post-pandemic
E-commerce, in particular, continues to show promise. With changing customer habits, Kroger is leaning heavily into digital fulfillment centers and automation technology, aiming to compete with players like Amazon and Walmart.
The announcement also follows recent internal changes. Earlier in 2025, longtime CEO Rodney McMullen resigned amid a board ethics inquiry. Interim CEO Ron Sargent now leads the company during this pivotal transformation.
Adding to the turbulence, Kroger’s proposed $24.6 billion merger with Albertsons was blocked by U.S. regulators in late 2024. The fallout from that deal continues, with Albertsons filing a legal complaint accusing Kroger of breaching the agreement.
These closures are viewed by some analysts as a response to regulatory scrutiny and competitive pressures in a shifting retail environment.
If you’re a Kroger customer, you may wonder: Will this affect my shopping experience?
In the short term, some local shoppers will need to drive farther or switch to alternate grocery stores. However, Kroger assures that customer service, pricing, and product quality will not decline.
On the flip side, stores in remaining markets could see renovations, expanded selections, and tech-driven improvements, as the company reinvests the savings from these closures.
Kroger’s decision to close 60 stores nationwide is a bold and controversial move. But in the world of grocery retail, adaptability is essential. With shifting shopping habits and fierce competition, this strategy could help the company strengthen its core operations and deliver better experiences where demand is growing.
For employees, communities, and loyal customers, the coming months will be a period of transition—but potentially also one of opportunity.
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