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Kroger is planning to close 60 of its supermarkets across the US over the next 18 months as part of a larger effort to cut costs after a dip in quarterly sales.

The move is part of a broader cost-cutting strategy following a drop in quarterly sales.

The closures, revealed in the company's first-quarter 2025 earnings report, represent about 5% of Kroger-branded stores. Kroger currently operates 1,239 stores under its main brand across 16 states.

Kroger has yet to share which specific store locations will be impacted by the upcoming closures. "We will not be releasing the store list at this time," Kroger spokesperson Erin Rolfes told sources.

Interim CEO Ron Sargent confirmed during a call with investors that the closures will focus on stores that are no longer profitable.

"These locations are spread across the country and are not contributing to the company's long-term goals," he said.

Kroger posted $45.1 billion in sales for the quarter, slightly down from $45.3 billion in the same period last year, CBS News said.

In its latest earnings update, Kroger revealed a $100 million impairment charge linked to the upcoming store closures.

Kroger to Reinvest Savings After Closing 60 Stores

Despite the cuts, the company says it will invest the savings back into improving customer experience.

Kroger also promised that employees from closing stores will be offered jobs at other locations.

The closures follow two rounds of layoffs earlier this year, which impacted a number of corporate and non-store roles.

Kroger said those changes were made to improve how the company works and to focus on key priorities.

According to USA Today, in addition to closing underperforming stores, Kroger says it still plans to invest between $3.6 billion and $3.8 billion this year to build new stores and upgrade existing ones.

The news also comes as the company continues to look for a permanent CEO after Rodney McMullen's sudden resignation in March.

McMullen stepped down after an internal ethics investigation, and Sargent has been leading the company in the meantime.

Kroger, based in Cincinnati, employs more than 400,000 people nationwide. While the company hasn't said exactly where the cuts will happen, many customers and employees are watching closely for updates.