Kroger is closing around 60 stores in the next year and a half

New York CNN Kroger is set to close about of its grocery stores amounting to approximately locations over the next year and a half The closures come a meager months after plans collapsed for a merger with rival Albertsons that would have created a massive chain That resulted in the two companies becoming embroiled in a legal fight Kroger revealed in an earnings release Friday that it was taking a million impairment charge on the closures but that they would provide a modest financial benefit in the long term The company did not say which specific stores were slated for closure and didn t at once respond to a request for comment Affected employees will be offered positions at nearby stores Kroger noted and it will use the money saved to invest in customer experience at the remaining locations Kroger has roughly stores spanning US states The grocery chain revealed it is benefiting from consumers cutting back spending on dining out and lifted its sales forecast for the year Interim CEO Ron Sargent stated in an earnings call that its customers are eating more meals at home Kroger s sales were also boosted by price cuts on products and a bigger promotional push for its private labels which are often cheaper than name brands it declared Sales of its private label products have grown faster than sales of national brands for seven consecutive quarters Sargent noted In the coming months Kroger will also launch new protein-rich products to capitalize on consumers growing appetite for the nutrient As for the closures Sargent explained not all of our stores are delivering the sustainable results we need and that the company had not reviewed its locations during the merger process as it usually does every year Sargent was named the interim CEO in March following the abrupt resignation of Kroger s former leader Rodney McMullen after an scrutiny into his personal conduct Kroger KR shares closed nearly higher Friday