America’s largest grocery chain Kroger is already ahead of the curve. So much so that it today announced plans to shutter 60 of its stores nationwide in the next year and a half. This ruling has significant implications, as many of these stores are run in multiple different branded locations as Food 4 Less, Fred Meyer and King Soopers. The closures have been the most visible piece of a larger strategy. Their mission is to streamline operations throughout over 2,700 grocery stores in 35 states.
The conglomerate, which operates most of its stores under the Kroger name, owns 19 other chains. These closures are indicative of Kroger’s long-term strategy to cut costs and align its operations with an increasingly competitive market and shifting customer shopping patterns. As part of this initiative, Kroger expects to see a small net positive financial impact from the closures.
Kroger stressed its focus on helping employees impacted by the closure of the stores in the test. The company is committing to keep all associates who currently work at the affected stores on their payroll by offering positions in adjacent stores. This change appears to be made to help ensure that they can keep their employees moving up within the organization.
“As a result of these store closures, Kroger expects a modest financial benefit,” – Kroger
Kroger’s decision is part of a larger trend in the retail industry, where many grocery chains are adapting to shifts in shopping habits, including the growing popularity of online grocery shopping. The closures will supposedly help Kroger double down on truly making the customer experience more enjoyable at the stores that they’re keeping open.
“Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance. Kroger will offer roles in other stores to all associates currently employed at affected stores,” – Kroger
