America’s Grocery Giant Will Slash 60 Stores Despite Posting Strong Earnings

Kroger is shutting down 60 stores even though its recent earnings outperformed expectations. Executives say the closures are part of a plan to focus on long-term growth and efficiency.

Key Facts:

Kroger announced plans to close around 60 stores over the next 18 months.
The closures were disclosed in its first-quarter 2025 earnings report.
Company profits “exceeded expectations,” but certain stores were deemed nonessential to future growth.
The closures come with a $100 million impairment charge, but Kroger expects a modest financial benefit overall.
Kroger says all impacted employees will be offered jobs at other locations.

The Rest of The Story:

Kroger, one of America’s largest grocery chains, is closing about 60 stores by the end of 2026.

The announcement was made during the company’s first-quarter 2025 earnings call, even though total company profits outpaced projections.

Ron Sargent, a director at Kroger, explained, “Not all of our stores are delivering the sustainable results we need.”

He emphasized that this decision is aimed at improving the company’s overall efficiency and future readiness.

While Kroger took a $100 million impairment charge for the closures, it expects to see a financial benefit from the move.

Executives plan to reinvest those savings into improving the customer experience.

However, the company did not release the list of affected locations.

Kroger plans to close 60 stores in the next 18 months. pic.twitter.com/2RgdQGpDP6

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Commentary:

At first glance, the decision to close 60 stores after a strong earnings report seems puzzling.

When a business is doing well, the assumption is usually that expansion—or at least stability—is next.

But behind the scenes, there’s a clear corporate strategy at play.

Companies like Kroger are always under pressure to improve shareholder value.

Even with healthy overall profits, underperforming stores weigh down margins.

Closing them helps streamline operations, redirect resources, and improve return on investment.

Offering jobs to affected workers may soften the blow, but practical challenges remain.

Many employees may not live near another Kroger store or be able to relocate.

This could quietly lead to layoffs, even if they’re not labeled as such.

The impact will also be felt in the communities these stores serve.

For many areas, especially rural or low-income neighborhoods, a Kroger might be one of the few full-service grocers.

Once gone, families may be left with fewer options and longer drives for basic goods.

There’s also the question of timing.

With grocery prices remaining high, closing stores could raise eyebrows among customers already frustrated with cost-of-living increases.

Ultimately, this move shows how major corporations often prioritize long-term efficiencies over short-term inconvenience.

They are playing the long game—consolidating now to better weather future market shifts.

The Bottom Line:

Kroger is shutting down 60 stores to trim underperforming locations and boost long-term profitability, even though the company just posted stronger-than-expected earnings.

While executives say the move is about efficiency and reinvestment, it will likely create headaches for both employees and communities.

The store closures reflect the cold calculations companies make when balancing profit with public service.