Kroger has outlined plans to close 60 underperforming stores over the next 18 months, a decision aligned with the company’s long-term strategy for operational efficiency. This move follows a period of stagnant store evaluations, which had been paused during the regulatory process of its failed merger attempt with Albertsons. The store closures will be spread across various locations, with minimal impact on Kroger’s overall financial results.
Despite the closures, Kroger remains committed to growth, with plans to open 30 new stores in 2025, focusing on high-growth areas. The company expects this expansion to drive long-term profitability, particularly through larger-format stores like its Kroger Marketplace, which are designed to compete with giants such as Walmart. Kroger also highlighted the importance of new store openings as a key driver for increasing market share.
Kroger’s first-quarter results showed a slight decline in net income, but adjusted earnings per share exceeded Wall Street’s expectations. Net sales remained almost unchanged, but the company reported a 15% increase in e-commerce sales. Kroger has raised its sales growth forecast for the year, reflecting strong performance in key areas like pharmacy, e-commerce, and fresh food categories. The company continues to focus on maintaining price stability despite the challenges posed by tariffs.