One of the biggest supermarket chains in the United States will shutter around 60 locations in the next 18 months. Kroger announced the closings as part of the retailer’s first-quarter earnings report. While the grocer had $45.1 billion in sales, it stands that a reduction of underperforming locations will be financially prudent for the business’ bottom line.
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“Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce, and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience,” Kroger CEO Ron Sargent shared in a news release. “Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates, and generate attractive returns for shareholders.”
It’s Not All Bad News For Kroger Customers
Kroger remains one of the most prominent grocery chains in the country. They currently operate more than 1,200 locations in 16 states. In addition to selling groceries, many locations also have pharmacies and fuel centers.
Per Supermarket News, Kroger intends to increase its private-label offerings to meet customer demand. That includes releasing 70 new high-protein items in its Simple Truth line. Kroger also plans to monitor e-commerce trends as customers’ online shopping habits continue to increase.
The company’s newly appointed Chief Financial Officer, David Kennerly, is confident in the company’s plans for the future.
“Ron [Sargent] and I bring a fresh set of eyes to the business,” he said. “While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain and as a result other elements of our guidance remain unchanged.”
Kroger did not announce which locations will close or when they anticipate closures will begin.
This story’s featured image is by Jonathan Weiss via Shutterstock.
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