MCKINNEY, Texas — Kroger announced plans on Friday to close approximately 60 stores nationwide over the next 18 months, including a location in McKinney, Texas. The supermarket at 1707 W. University Drive will be shut down, leaving employees with opportunities for transfers to other Kroger locations.
“The closure of our McKinney store is a challenging but necessary decision,” a company representative stated. “This is part of a broader strategy to improve operational efficiency and secure the long-term viability of our business.”
The announcement coincides with Kroger’s recent earnings report, which highlighted a $100 million impairment charge linked to these store closures. Despite this, the grocer reported a 3.7% increase in first-quarter sales compared to the same period last year.
While Kroger has not disclosed the complete list of stores that will be shuttered, the decision indicates a significant shift in the company’s operational strategy. The closures come as Kroger aims to reinvest savings into enhancing customer experience, according to the company’s financial assessments.
This wave of closures follows another grocery chain, Tom Thumb, which is also ending operations at its stores in Plano and Allen, both situated in Collin County. The simultaneous closures reflect a competitive atmosphere in the grocery market, as retailers adjust to shifting consumer habits.
The company’s decision to close stores arrives less than a year after a proposed merger with Albertsons fell apart. That merger, which would have been the largest in U.S. grocery history, was abandoned in December amid regulatory concerns. Following the failed deal, Albertsons filed a lawsuit, asserting that Kroger did not do enough to secure the necessary approvals.
As Kroger moves forward with its restructuring efforts, community members and employees alike will feel the effects of these closures, prompting questions about the future of local grocery options in the area. While some workers will transition to nearby locations, the impact on local shopping habits remains uncertain. In light of these changes, both employees and consumers are watching Kroger’s next steps closely.