Kroger, one of the largest supermarket chains in the United States, has announced plans to close approximately 60 underperforming stores over the next 18 months. This decision, revealed during the company’s first-quarter 2025 earnings report on June 20, 2025, is part of a broader strategy to streamline operations and reinvest in higher-performing areas of the business.
Why Is Kroger Closing Stores?
The closures are a result of Kroger’s ongoing efforts to optimize its store portfolio and enhance the customer experience. By shutting down underperforming locations, the company aims to reallocate resources toward more profitable ventures, including digital expansion, pharmacy services, and fresh food innovation. Kroger anticipates a “modest financial benefit” from these closures, which will be reinvested into improving customer offerings.
So Where Are Kroger Stores Closing in Illinois?
Here are the places of Kroger stores closing in Illinois cities:
- Anna
- Bartonville
- Bloomington
- Bourbonnais
- Canton
- Carbondale
- Chillicothe
- Decatur
- East Peoria
- Harrisburg
- Herrin
- Marion
- Morton
- Mount Vernon
- Murphysboro
- Nashville
- Normal
- Ottawa
- Pekin
- Peoria
- Sterling
- Streator
- Taylorville
- W. Frankfort
- Washington
Impact on Employees
Kroger has committed to offering positions at other locations to employees affected by the store closures. This initiative is part of the company’s broader strategy to support its workforce during this transition. Specific details regarding the number of employees impacted or the exact locations of the closures have not been disclosed.
Financial Implications
In the first quarter of 2025, Kroger reported a net income of $866 million, a decrease from $947 million in the same period the previous year. Sales slightly dipped to $45.1 billion from $45.3 billion. However, the company saw a 3.7% increase in sales year-over-year for its Specialty Pharmacy and adjusted items, excluding fuel. Kroger’s CFO, David Kennerley, expressed optimism, raising the company’s identical sales guidance for the year to a range of 2.25% to 3.25%.
Store Closures in Specific Regions
While the exact locations of the 60 stores to be closed have not been specified, some regional reports have highlighted specific areas affected. For instance, a Kroger store in McKinney, Texas, is among those slated for closure as part of the nationwide shutdowns. However, the company has stated that no closures are anticipated in the Cincinnati-Dayton region.
Kroger Stores Closing For Good?
Despite the store closures, Kroger plans to continue expanding its footprint by completing 30 major store projects by the end of 2025 and accelerating new store openings in growth regions by 2026. The company aims to balance its brick-and-mortar presence with increased e-commerce engagement, which saw a 15% growth in the last quarter. Kroger also intends to enhance its delivery services through improved pickup efficiency and faster order fulfillment, including the Kroger Express Delivery and same-day options via Instacart.
Kroger’s decision to close 60 stores is a strategic move aimed at optimizing its operations and focusing on areas with higher growth potential. While the closures may impact some employees and customers, the company’s commitment to reinvesting the savings into enhancing the customer experience and expanding its digital and service offerings indicates a forward-looking approach to maintaining its competitive edge in the retail grocery industry.
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