This story was originally posted on MyNorthwest.com
Kroger has announced that many of its stores across the country will permanently close their doors. It is unknown if the stores being closed are in Washington, and whether or not they are QFC or Fred Meyer stores, as of this reporting.
In Kroger’s first-quarter earnings report on Friday, the company announced that approximately 60 stores will close over the next 18 months to provide a “modest financial benefit.”
Kroger to close roughly 60 stores
Kroger has yet to provide a complete, detailed list of each store location that will be impacted, although a variety of local media outlets have reported on locations that plan to close or have already shut down. No Washington store has been listed in the closing announcement, as of this reporting.
Kroger currently owns and operates 59 QFC locations in Washington and Oregon. Additionally, Kroger has 132 Fred Meyer stores across the Pacific Northwest and Alaska.
According to Fast Company, the following states plan to have closures or have already closed stores: Texas, West Virginia, Virginia, and Tennessee. There has been no statement on whether these locations are included in the closure of approximately 60 stores nationwide.
“While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain,” Kroger Chief Financial Officer David Kennerly said.
In the first quarter, Kroger mentioned that it recognized an impairment charge of $100 million, which contributed to the decision to close roughly 60 stores nationwide.
“Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance,” Kroger stated.
Kroger also stated in its earnings report that it will offer affected employees a role at other stores as a result of these closures.
Additionally, Kroger’s earnings report was released ahead of the stock market opening on Friday, which included $866 million in net profits for the first quarter. It increased the Kroger share price by nearly 10%.
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