Kroger closing around 60 stores: Report

(NewsNation) — Kroger is planning to close around 60 of its stores within the next 18 months, per NewsNation local affiliate WDTN.

According to the company’s first-quarter report, it is expecting a “modest financial benefit” as it plans to close those stores.

The report said, “In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit.”

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The company claimed that the savings it receives from the closures will benefit the customer experience.

“Kroger is committed to reinvesting these savings back into the customer experience, and, as a result, this will not impact full-year guidance,” company officials said.

Employees affected by these closures will reportedly have the opportunity to be placed in a different position at a different Kroger location. Kroger didn’t announce which of its 2,731 stores would be closed.

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During a call with Wall Street analysts, interim CEO Ron Sargent reportedly said that the stores being closed were spread across the country. He also said that Kroger is still pushing for more than 30 “major storing projects,” which would include several new Marketplace Krogers that would be larger.

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According to the Cincinnati Enquirer, the company also stated that it still plans to spend anywhere from $3.6 billion to $3.8 billion in 2025 on capital expenditures. This money would be used to build new Kroger stores and expand and renovate existing ones.

The first-quarter fiscal results showed that the company’s profit decreased by 8.6%, but total sales declined by only 1%. This news comes a few months after Kroger had two rounds of layoffs, according to the Cincinnati Enquirer.

Kroger searching for new CEO

Kroger is also still looking for a new CEO after the last CEO, Rodney McMullen, reportedly resigned abruptly. McMullen quit the company March 3 after an internal ethics investigation. Sargent, the former CEO of Staples and a current Kroger board member, is temporarily working as the CEO.

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Sargent said during the Friday conference call that Kroger has hired a search firm to help them find a new CEO. Kroger is based in Cincinnati, Ohio, and has over 400,000 employees across the nation.

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