Kroger said it plans to close 60 of its supermarkets across the U.S. over the next 18 months.
The planned store closures represent about 5% of the Cincinnati-based company’s 1,239 Kroger-branded grocery stores across 16 states. The grocery retailer did not specify which store locations it plans to cease operating.
Kroger did not immediately respond to CBS MoneyWatch’s request for comment about the store closure locations.
The grocery chain announced the planned reduction of its footprint as it reported its first-quarter earnings Friday. Sales dropped slightly to $45.1 billion compared to $45.3 billion for the same period a year earlier.
Kroger said that it expects the 60 store closures to buoy the company financially, according to a regulatory filing.
“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,” the company said.
Kroger said the resulting savings will be invested in customer experience initiatives. Kroger also said that all employees at affected stores will be offered roles at other Kroger store locations.
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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