A LEAKED memo has revealed the next steps for Kroger in the midst of its plans to close 60 stores by the end of 2026.
The popular US retailer has had a busy summer, closing over a dozen locations in the past few months, and there are more in the pipeline.
A damaging memo has been leaked from inside Kroger that confirms nearly 1,000 employees are set to be laid off.
This will target those at the corporate level, and marks the store’s third round of job cuts in eight months.
According to more than a dozen posts on LinkedIn, a sizable number of the layoffs will impact the Technology & Digital Division at Kroger.
A company spokesperson has confirmed that none of the lay offs will impact in-store staffers, of those working in the manufacturing or distribution side of the company.
In the leaked memo, Chairman and interim CEO Ron Sargent wrote: “In the past few months, we have all looked for ways to simplify the organization, shift resources closer to our customers, and focus on work that creates the most value.
“These decisions are never easy, but we know thoughtful, yet difficult, choices are necessary to set our organization up for continued success.”
The savings made from the job cuts will be put into lowering prices and opening new locations, Sargent also said in the memo.
SHUTTING SHOP
Kroger is currently in the middle of a massive restructuring initiative, which will see it close 60 stores by the end of 2026.
The company announced in June that it would be shuttering the locations, but did not specify which locations would be shutting.
Per Grocery Drive, a total of 39 will shut by the end of this year, with at least 18 having already closed.
States such as California, Texas, Indiana, Virginia and Georgia have seen Kroger closures this summer.
The closures were divided between a number of Kroger-owned brands, including Pick ‘n Save.
A total of 15 of the closures have been Kroger-name stores.
Sargent previously told investors: “We are reassessing our capital allocation strategy to make sure we are spending our capital on projects that offer the highest returns.
Kroger closure breakdown
- Kroger – 15 closures
- Harris Teeter – 5 closures
- Pick ‘n Save – 5 closures
- Jay C – 1 closure
- Fred Meyer – 6 closures
- QFC – 1 closure
- Mariano’s – 4 closures
- King Soopers – 1 closure
- Food 4 Less – 1 closure
“We are reviewing our non-core assets, we’re aggressively looking for ways to reduce costs throughout the company, and we expect to reinvest those cost savings directly into lower prices and additional store hours for our associates so that they can better serve customers.”
Despite the 1,000 lay offs, Kroger will offer those affected by the 60 closures positions at other stores.
OPENING TIME
At the same time, Kroger plans to complete 30 store projects by the end of 2025.
Sargent has said that store openings are the biggest driver of market share for the company.
He also wants to use the Kroger restructuring to improve the company’s e-commerce growth.
The interim CEO continued: “Our customers are embracing the whole digital model of our business, and we are seeing improvements in profitability at an increasing rate.
“We must become profitable on the e-commerce side of the business. And we’ve got a lot of work to do.”
