Famous grocery chain Kroger is officially set to close a total of 60 locations across the country within a span of coming 18 months. The stores that are closing within the next few months represent around 5% of the total 1,239 locations Kroger currently operates. This news came out when the company disclosed its decision in one of its recent regulatory filings to the SEC. If you are someone who wants to know more about Kroger Stores closing a total of 60 locations across the United States, the following article is for you.
What Did Kroger Say In Its Regulatory Filing About The Closures?
In the regulatory filings to the SEC, Kroger mentioned that it has recognized an impairment charge worth $100 million. This charge is related to the closures of around 60 locations over the span of the next 18 months. It further added that the company expects more financial benefits as a result of the closures scheduled in the upcoming months. The company is reportedly planning to invest these financial benefits into consumer experiences. During a conference call with Wall Street analysts this Friday, the interim CEO of Kroger, Ron Sargent, mentioned that the unprofitable stores spread across the country will be closed. The employees who’ll suffer due to the closures will be offered positions at other locations.
Which Kroger Locations Will Be Closed In The Upcoming Months?
The famous grocery chain, Kroger, currently operates in over 16 states, including Ohio, Kentucky, Indiana, Georgia, Texas, and Tennessee. There is no official confirmation regarding exactly which 60 locations are going to face closures. However, several reports are coming about the closing locations. As per a report from Fox19 Now, one of the spokespersons has stated that the company is not anticipating any closures in the Cincinnati-Dayton region.
Another report from WAFF suggests that the store that is located at 1707 W. University Drive in McKinney, Texas, is one of the 60 stores that are going to face closures. According to a statement from Kroger to WAFF, the closure is a part of the larger company-wide decision to run more efficiently. As per Kroger, it is done to ensure the long-term health of their business.
Store Closure Decision Comes After Two Rounds Of Layoffs
Months before the grocery chain announced store closures, it carried out two rounds of layoffs of an unspecified number of non-store workers. The company mentioned at that time how it is going to focus on the areas that are its key priorities and support its go-to-market strategy. It further added that the company is announcing a team restructuring and is eliminating a small number of roles to improve efficiency. Currently, the company employs a total of 409,000 across the country, and many of them will suffer from the store closures announced.
Kroger Witnesses Slight Fall In Sales In The First Quarter
The announcement about Kroger stores closing around 60 locations across the country comes after the company witnessed a slight decline in sales. Kroger managed sales worth $45.1 billion in the first quarter this year, while the sales in the same quarter last year were $45.3 billion. However, Ron Sargent assured that the company has seen significantly strong sales in sectors like pharmacy, e-commerce, and fresh produce. He also added that the company is making good progress in streamlining its activities, along with improving the experience of its consumers. Ron also assured that Kroger is confident in its ability to build on its momentum, deliver value for customers, invest in associates, and generate attractive returns for shareholders.
