Kroger (KR) Plans to Close Approximately 60 Grocery Stores to Streamline Operations

The Kroger Co. (NYSE:KR) is one of the 11 best performing Warren Buffett stocks in 2025. During the Q1 2025 earnings release on June 20, Kroger revealed plans to close approximately 60 of its grocery stores nationwide (about 5% of its total locations). The closure will go on for the next 18 months.

Kroger (KR) Plans to Close Approximately 60 Grocery Stores to Streamline Operations

According to the company, the planned closings prompted a $100 million impairment charge in Q1 2025. Despite this, the company expects a “modest financial benefit” long-term. And savings from the closures will be reinvested into “customer experience” initiatives at the remaining locations. The company further explained that this move would not impact its full-year guidance.

Interim CEO Ron Sargent stated that “not all of our stores are delivering the sustainable results we need” and that the company is looking to “run more efficiently.” As such, the closures are part of a broader effort to streamline operations and improve efficiency. All employees at the affected stores will be offered positions at nearby Kroger locations.

The Kroger Co. (NYSE:KR) is one of the largest grocery retailers in the United States. It operates supermarkets, multi-department stores, and convenience stores under regional banners like King Soopers, Kroger, Fry’s, and Ralphs. The retailer sells groceries, fresh produce, pharmacy items, and general merchandise. It also sells private-label products and operates fuel centers and in-store pharmacies.

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