Kroger to Close 60 Stores, Cut 9,000 Jobs Amid Crime Wave and Economic Pressures

 America’s largest supermarket chain, Kroger, is undergoing one of its most sweeping restructurings in decades—closing 60 stores and cutting nearly 9,000 jobs nationwide as the company grapples with mounting crime, inflation, and post-merger instability.

Announced in June 2025, the move affects roughly 2% of Kroger’s national footprint and includes the layoff of about 1,000 corporate staff and thousands more hourly workers tied to the closures. The decision comes amid a $112 billion surge in retail theft nationwide and intensifying competition in the grocery sector.

Interim CEO Ron Sargent said the closures target stores that are “failing to deliver sustainable results,” citing low profits, declining foot traffic, and inefficiencies following the collapse of the Albertsons merger in late 2024.

“Unfortunately, not all of our stores are delivering the sustainable results we need,” Sargent said on the company’s June earnings call.

While some closures are linked to rising theft and organized retail crime (ORC)—notably at several Fred Meyer and QFC locations in Washington—most reflect deeper structural and economic challenges. Kroger’s strategy echoes moves by UK grocers Tesco and Sainsbury’s, who have also downsized amid record losses from theft and inflation.

The National Retail Federation’s 2025 report found an 18% increase in shoplifting in 2024 compared to 2023, while violent incidents during thefts rose 17%. Retailers are responding by cutting hours, reducing inventory, or closing locations entirely.

“Retailers are contending with rising levels of theft, fraud, and violence, while refining security measures and partnering with law enforcement,” said NRF Vice President David Johnston.

The closures are hitting communities across the South, Midwest, and Pacific Northwest hardest. Houston lost two Kroger stores on September 30, while Gassaway, West Virginia, saw its only supermarket close in August—creating a new food desert in the region.

The human toll is steep. With each store employing 100–150 workers, the restructuring could affect between 6,000 and 10,000 hourly employees, many of whom earn between $25,000 and $31,000 per year. Unionized staff may transfer to other locations, but non-union employees face longer commutes, lost seniority, or reduced hours.

Despite the cuts, Kroger is simultaneously opening 30 new stores in high-growth markets such as Phoenix, Charlotte, and Colorado Springs and expanding its Ocado-powered fulfillment centers to accelerate online delivery.

CFO David Kennerley emphasized the pivot toward urban expansion and automation:

“We’re focusing our investments in high-growth areas. Advanced robotics and auto-freezer technology will streamline online orders and improve efficiency.”

But critics argue that the company’s shift risks deepening food insecurity. According to the USDA, 23.5 million Americans already live in low-access areas, and new closures will exacerbate the problem—particularly for low-income families, seniors, and rural communities.

With grocery prices up 26.6% since 2020 and fewer competitors in affected markets, prices may rise even higher.

Kroger’s transformation underscores a harsh reality for U.S. retailers: profitability, public safety, and social responsibility are increasingly in conflict. As the $112 billion retail crime wave collides with automation and inflation, the country’s largest grocer faces an existential test—balancing Wall Street expectations against the everyday survival of America’s communities.