Kroger says it can shut 60 shops throughout the U.S. over the subsequent 18 months
Kroger mentioned it plans to shut 60 of its supermarkets throughout the U.S. over the subsequent 18 months.
The deliberate retailer closures signify about 5% of the Cincinnati-based firm’s 1,239 Kroger-branded grocery shops throughout 16 states. The grocery retailer didn’t specify which retailer areas it plans to stop working, and informed CBS MoneyWatch that it’ll not be releasing a listing of the affected shops.
The grocery chain introduced the deliberate discount of its footprint because it reported its first-quarter earnings Friday. Gross sales dropped barely to $45.1 billion in comparison with $45.3 billion for a similar interval a 12 months earlier.
Kroger mentioned that it expects the 60 retailer closures to buoy the corporate financially, in response to a regulatory submitting.
“Within the first quarter, Kroger acknowledged an impairment cost of $100 million associated to the deliberate closing of roughly 60 shops over the subsequent 18 months. Because of these retailer closures, Kroger expects a modest monetary profit,” the corporate mentioned.
Kroger mentioned the ensuing financial savings will likely be invested in buyer expertise initiatives. Kroger additionally mentioned that each one workers at affected shops will likely be supplied roles at different Kroger retailer areas.
