Grocery giant Kroger to close 60 stores in next 18 months

Core Viewpoint - Kroger plans to close approximately 60 stores over the next 18 months to enhance operational efficiency and focus on future growth, despite reporting profits that exceeded expectations [2][5]. Group 1: Store Closures - Kroger will close 60 stores by the end of next year as part of a strategic review to improve efficiency [1][2]. - The closures will incur a $100 million impairment charge, but the company anticipates a modest financial benefit from the shutdowns [5]. - All employees from the closing stores will be offered jobs at other locations, maintaining the workforce stability [7]. Group 2: Financial Performance - Total company sales for the first quarter were reported at $45.1 billion, slightly down from $45.3 billion in the same period last year [8]. - The company expects the loss from store closures will not impact its full-year guidance, indicating confidence in future financial performance [5]. Group 3: Management Insights - Director Ron Sargent emphasized that not all stores are delivering sustainable results, prompting the decision to close underperforming locations [2]. - The company aims to reinvest savings from the closures back into enhancing customer experience [5].