Kroger says it will close 60 stores across the U.S. over the next 18 months

Kroger, one of the largest supermarket chains in the United States, recently announced its plans to close 60 of its stores over the next 18 months. This decision comes as the Cincinnati-based company reported a slight drop in sales in its first-quarter earnings. The planned closures represent about 5% of Kroger’s 1,239 Kroger-branded grocery stores across 16 states.

While Kroger did not disclose which specific locations will be affected by the closures, the company stated that the move is expected to have a positive impact on its financial performance. In its regulatory filing, Kroger mentioned recognizing an impairment charge of $100 million related to the store closures. The company anticipates a modest financial benefit as a result of these closures.

Despite the store closures, Kroger assured that all employees at the affected stores will be offered positions at other Kroger locations. The savings from the closures will be reinvested in customer experience initiatives to enhance the overall shopping experience for patrons.

Megan Cerullo, a New York-based reporter for CBS MoneyWatch, covered this development in the grocery industry. She specializes in reporting on small businesses, workplace trends, healthcare, consumer spending, and personal finance topics. Megan regularly shares insights on her reporting on CBS News 24/7.

As Kroger navigates these strategic changes, it underscores the evolving landscape of the grocery retail sector and the importance of adapting to meet the needs of consumers in a competitive market. Stay tuned for further updates on Kroger’s store closures and how the company continues to innovate and serve its customers in the ever-changing retail environment.