Kroger To Close 5% Of Stores, Michigan May Be Affected

Business closings have become more common than ever before and there are plenty of things to blame. Starting with the COVID19 pandemic, which set everyone behind and then you add the effects of inflation on the economy, and other circumstances, it gets hard for customers to pour into businesses. This leads to many places closing their doors forever because they are hemorrhaging money.

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There have been thousands of businesses all over the country that have had to close many locations int he United States and many local places closing their only brick and mortar locations. This has left many communities looking far different than they have before including here in Michigan.

Kroger is one of the many grocery store chains that has been known for providing great products at affordable pricing for their customers. Unfortunately, this model has started to catch up with their bank accounts, so as they struggle to make profits all too common changes will be coming to their business.

Did You Hear That Kroger Is Closing Stores?

Mlive Reports:

National grocer Kroger announced plans Friday to close 60 locations in the next 18 months. Company leaders say the decision will financially benefit Kroger in the long term. The money saved by the closures will be used to invest in the customer experience for the remaining Kroger locations.

Kroger has pledged to offer impacted employees opportunities to work at a remaining nearby location. The 60 location closings are only 5% of the 1200 stores they currently run in 16 states, but did not specify which locations would be closing. There is a chance that one or multiple Kroger stores in Michigan may close.

As anyone could have expected, Kroger will be closing the stores that are not meeting their demands in terms of sustainable results. According to CNN:

Interim CEO Ron Sargent said in an earnings call that its customers are “eating more meals at home.”Kroger’s sales were also boosted by price cuts on 2,000 products and a bigger promotional push for its private labels, which are often cheaper than name brands.

Since Kroger didn't review their locations during the merger process, they will begin evaluations to decide which stores should close and which should remain open.