Grocery giant Kroger has initiated the closure of 60 stores across the United States, a move that follows the dramatic failure of its proposed $24.6 billion merger with rival Albertsons. The closures, representing approximately 5 percent of Kroger's 1,239-store portfolio, are part of a strategic pivot to shed underperforming locations.
Strategic Shift After Merger Collapse
The decision to close these stores was announced in June, with the company stating closures would largely occur over an 18-month period and include layoffs affecting 1,000 employees. This restructuring comes approximately six months after federal judges blocked the historic merger with Albertsons. In December, a permanent injunction issued by Judge Marshall Ferguson in Seattle ruled the deal would unlawfully reduce grocery competition and violate consumer-protection laws.
Specific Closures and New Growth Plans
Kroger has confirmed specific closures, including locations in Houston and Spring, Texas, scheduled to shut on April 10. At least three other Houston-area stores have already closed since the initial announcement. A company spokesperson described the closures as a "paring down" of underperforming sites.
Concurrently, Kroger is aggressively pursuing expansion in markets identified for high growth. During a June earnings call, officials stated the closures are expected to yield a "modest financial benefit" and that new store openings in 2026 will accelerate, with a 30 percent increase over the 2025 build rate.
Geographic Impact and Future Investments
While a full closure list remains undisclosed, analysis by MassLive indicates stores will close in multiple states. Colorado will lose at least two stores, Indiana three, Illinois four, and both Virginia and Wisconsin five each. Single store closures are also expected in California, Kentucky, Maryland, North Carolina, Tennessee, and West Virginia.
Rudy DiPietro, President of Kroger's Texas Division, told the Houston Business Journal the company plans to open "a bunch" of new stores in the Houston area over the next three to five years. This reflects Kroger's revised overall strategy to focus new investments in areas demonstrating strong growth potential, a response to increased competition from giants like Walmart, Costco, and Amazon.
The failed merger, which would have been the largest in U.S. grocery history, has forced Kroger to recalibrate its approach independently, balancing selective retrenchment with targeted expansion for future profitability.
