Kroger to Close 60 Stores

The Kroger Co. (Cincinnati) says its plans to close 60 stores over the next 18 months. The grocer, which made that announcement in the news release about its first quarter earnings, provided no specifics on where the stores are located and which flags they operate under. (In addition to its flagship chain, Kroger operates several other brands, including Fred Meyer, Fry’s, Harris Teeter, King Soopers and Ralph. In all, it has 2700-plus stores in 35 states.)

Here’s the what the grocer did disclose about the move:

“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. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance. Kroger will offer roles in other stores to all associates currently employed at affected stores.”

The news on the closures comes on the heels of a tumultuous time for the grocer, which saw its planned mega-merger with Albertsons fall through late last year and the exit of longtime CEO Rodney McMullen for an ethics breach unrelated to the company’s operations in March. (The company has not yet named a permanent replacement for McMullen.)