The grocer Friday revealed plans to close about 60 stores around the country over the next 18 months.
MCKINNEY, Texas — A North Texas Kroger store is closing as the grocer revealed plans to shutter about 60 stores nationwide over the next 18 months.
A Kroger spokesperson confirmed that the store at 1707 W. University Drive in McKinney is closing. Affected employees will be offered transfers to other stores, according to the spokesperson.
“Unfortunately, we have made the difficult decision to close our McKinney store located at 1707 W. University Dr.,” Kroger said in a statement. “This closure is part of a larger company-wide decision to run more efficiently and ensure the long-term health of our business.”
The news comes as an earnings report Friday revealed the grocer plans to close about 60 stores across the country over the next 18 months. It’s unclear what other stores are affected.
“In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit. Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance,” the report states.
Kroger reported that first-quarter sales increased 3.7% compared to the same quarter last year, even as they announced the closures.
The planned closure of the Kroger in McKinney comes as another grocery store chain, Tom Thumb, is closing a location in Plano, also in Collin County, and a store in Allen this summer.
The closures also come within a year of Kroger’s failed merger with Albertsons. The merger, which was set to be the largest supermarket merger in U.S. history, fell through in December, as the Associated Press reports.
Albertsons then filed a lawsuit against Kroger, the Associated Press reports, alleging Kroger hadn’t done enough to make sure the merger received regulatory approval.
