Kroger, a leading supermarket chain in the United States, is planning to permanently close around 60 underperforming stores over the next 18 months. This bold move, announced in its Q1 2025 earnings report, underscores Kroger’s strategy to streamline operations, enhance profitability, and reinvest in stronger market regions .
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| Kroger to close 60 stores nationwide |
Why Kroger Is Closing Stores
The decision to shutter nearly 5% of Kroger-branded outlets reflects a tactical review of its 2,700+ store portfolio . With a $100 million impairment charge already recorded, Kroger projects a “modest financial benefit” from the closures—savings that will go toward improving customer experience and fueling growth .
Supporting Employees and Streamlining Operations
Kroger emphasized its commitment to affected team members, stating that all employees at closing locations will be offered roles at nearby stores . This compassionate approach aims to retain talent while optimizing Kroger’s ecosystem in both brick‑and‑mortar and digital realms.
North Texas Impact: Collin County Store Closure
North Texas will feel the impact directly: Kroger confirmed that the store at 1707 W. University Drive in McKinney (Collin County) will close, joining the wave of nationwide closures . Although a tough decision, Kroger described it as a strategic alignment to ensure long-term operational health .
Robust Growth Signals Amid Store Closures
Despite the closures, Kroger is signaling strong business momentum:
-Same-store sales (ex-fuel) rose 3.2% in Q1, exceeding the 2.4% analyst expectation .
-The company raised its 2025 identical‑sales guidance to 2.25%–3.25%, up from 2%–3% previously .
-Adjusted EPS of $1.49 per share beat analysts’ estimates of $1.45 .
-Wall Street reacted positively—Kroger stock climbed 5.5%–9%, reflecting investor confidence.
Expansion Efforts and Digital Momentum
Kroger is doubling down on growth, with plans to open 30 new stores in 2025 and accelerate expansion in 2026, especially in high-growth markets . Meanwhile, its e-commerce sales surged 15%, highlighting the importance of its digital strategy tied closely to its physical footprint .
Competitive Advantage and Brand Strategy
In a climate of inflation and rising restaurant prices, customers are turning to Kroger’s low-cost store-brand products—part of its "Our Brands" lineup—for value. Private-label items have outperformed national brands for seven consecutive quarters . Kroger’s success in this arena, combined with enhanced curbside pickup and delivery services, reinforces its edge over rivals .
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