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U.S. grocer Kroger is planning to close dozens of stores by the end of next year.
The massive Cincinnati-based grocery store chain made the announcement on Friday. It operates thousands of supermarkets and pharmacies across the nation and is planning to close 60 stores in the next 18 months, a first-quarter 2025 earnings report said.
While the report said the company's profits "exceeded our expectations," Director Ron Sargent said in an earnings call that the company reviewed areas not meaningful to its future growth and determined that closing the stores "will make the company more efficient."
"Unfortunately, today, not all of our stores are delivering the sustainable results we need," Sargent said on Friday. "To position our company for future success, this morning, we announce plans to close approximately 60 stores over the next 18 months."
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A customer walks past the frozen food aisle inside a Kroger grocery store in Louisville, Kentucky, on June 14, 2017. (Luke Sharrett/Bloomberg / Getty Images)
The report said the closures cost Kroger a $100 million impairment charge.
However, as a result of the shutdowns, the company "expects a modest financial benefit" and is planning to reinvest the savings back into the customer experience. The loss is not expected to impact full-year guidance.
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An employee pushes shopping carts towards a Kroger store in Peoria, Illinois, on June 16, 2015. (Daniel Acker/Bloomberg via Getty Images / Getty Images)
Kroger told Fox News Digital that the company will not be releasing a list of which locations will be impacted at this time.
Kroger currently employs approximately 410,000 associates across the U.S. (Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 71.97 | +6.45 | +9.84% |
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All employees from the closing stores will be offered jobs at other locations, according to the report. Kroger currently employs nearly 410,000 associates across the country.
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Total company sales were $45.1 billion in the first quarter compared to $45.3 billion for the same period last year.
