Kroger is closing stores primarily because many of them are underperforming and unprofitable. The company announced plans to close about 60 stores nationwide over the next 18 months as part of an effort to simplify its business and focus resources on more profitable locations and future growth. This move follows a series of setbacks for Kroger, including labor unrest, a failed merger with Albertsons, and the resignation of its chief executive. The closures are intended to redirect customers to stronger stores and reinvest in new store openings and renovations. The closures represent roughly 2% of Kroger's total stores, and employees at closing locations will be offered transfers to other stores. Additionally, the company plans to continue investing billions in capital projects this year despite these closures. These factors illustrate Kroger's response to challenges such as changing consumer habits, increased competition, and operational pressures in the grocery market.
