Kroger Blames Retail Theft, Plans to Close 60 Stores and Cut 9,000 Jobs

Police Data Tells a Different Story

America’s largest grocery chain is shutting down stores from Georgia to Washington, and the reason it’s giving doesn’t match what local police are finding.

Kroger says theft made these locations impossible to run. But in at least one city, shoplifting dropped 82% over five years, and the store is closing anyway.

The real story involves a failed merger, a CEO who resigned in disgrace, and communities about to lose their only source of fresh food.

60 Stores Gone in 18 Months

In June 2025, Kroger announced plans to close approximately 60 stores over the next 18 months.

The closures represent about 2% of Kroger’s national footprint and could impact between 6,000 and 9,000 employees nationwide.

Interim CEO Ron Sargent said on the earnings call that not all stores were delivering sustainable results.

The company said all employees at affected stores will be offered roles at other Kroger locations, though unions say that promise comes with complications many workers cannot overcome.

New Boss Inherits the Mess

Ron Sargent became interim CEO and chairman of Kroger in March 2025 after Rodney McMullen resigned following a board investigation into personal conduct that was inconsistent with company ethics policy.

The conduct was unrelated to company financial performance and did not involve any Kroger employees.

Sargent had previously served as chairman and CEO of Staples until 2016 and spent his first ten years after business school working at Kroger in stores, sales, and marketing.

Three months into the job, he announced the biggest restructuring in years.

The $112 Billion Theft Number

Kroger pointed to an industry-wide crisis to justify the closures.

According to the National Retail Federation, retail shrinkage accounted for $112.1 billion in losses in 2022, up from $93. 9 billion in 2021.

But shrinkage is a broad term that includes theft, operational mistakes, and vendor errors. The NRF estimates only 36% of shrink comes from external theft.

Politicians and some media outlets have used the $112 billion figure as if it represents shoplifting alone, but the reality is more complicated.

Everett Police Say Crime Dropped

In Washington state, local officials challenged Kroger’s narrative with hard numbers.

The Everett Police Department reported an 82% drop in shoplifting since 2020 at the Fred Meyer on Casino Road, one of six stores Kroger is closing in the region.

Mayor Cassie Franklin accused the company of making decisions based on greed, not theft.

Kroger responded that despite doubling its safety and security investment, challenges remain, but the company did not address the specific crime statistics.

Eleven States Losing Stores

Closures have been reported in Georgia, Illinois, Indiana, Kentucky, Maryland, North Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.

In Georgia alone, four Atlanta-area stores are shutting down. Illinois is losing multiple Mariano’s locations in the Chicago suburbs.

In Washington, six Fred Meyer and QFC stores are closing by October, affecting 703 workers. Kroger refused to release a complete list, leaving many communities waiting to learn if their store is next.

Fresh Food Gets Farther Away

For some neighborhoods, losing Kroger means losing access to groceries entirely.

In Peoria, Illinois, council member Bernice Gordon-Young warned that the Sterling Avenue closure would create another food desert.

In Seattle’s Lake City neighborhood, residents will have to travel more than a mile to reach the next full-service supermarket.

The local Fred Meyer also donates about 20,000 pounds of groceries annually to a nearby food bank, support that will disappear when the doors close.

Transfers Come With Catches

Kroger promised transfer opportunities to affected staff, but this often comes with complications. For some workers, transferring means longer commutes, reduced hours, or loss of seniority rights.

UFCW Local 400 urged Kroger to reverse course, saying these jobs provide health benefits, retirement options, and a path to middle-class stability.

For workers already stretched by a housing affordability crisis, moving to a store across town may not be realistic.

The $25 Billion Deal That Died

The closures came months after courts blocked Kroger’s $24.6 billion merger with Albertsons, which would have combined America’s two largest supermarket chains.

A federal court in Oregon and a state court in Washington both ruled the deal would reduce competition and harm shoppers.

Albertsons terminated the merger and sued Kroger for breach of contract, and Kroger filed counterclaims accusing Albertsons of undermining the deal.

Both companies are now fighting over a $600 million termination fee.

Unions Call It Corporate Greed

UFCW 3000 President Faye Guenther said Kroger’s closures put profit over people.

Seattle Congresswoman Pramila Jayapal called the closures an example of giant corporations prioritizing bottom lines over community health.

The Everett City Council declared the Fred Meyer closure an act of corporate neglect that would create a food and retail desert.

Local leaders across the country are demanding meetings with Kroger to discuss alternatives.

New Stores Planned for Suburbs

Despite closing 60 locations, Kroger says it plans to open 30 new stores and expand its digital shopping infrastructure.

The company will spend up to $3.8 billion in 2025 on capital expenditures while trimming underperforming locations.

Interim CEO Sargent described the strategy as a realignment, not a retreat, with investments flowing toward automation, data analytics, and suburban growth areas.

The pattern is clear: Kroger is leaving working-class neighborhoods for wealthier markets.

Wall Street Loved the News

Kroger’s stock rose almost 10% on Friday following the earnings report that announced the closures.

The company said it expects the 60 store closures to produce a modest financial benefit and reaffirmed its full-year profit outlook.

The company expects operating profit between $4.7 billion and $4.9 billion for 2025. For investors, fewer stores means lower costs.

For the 9,000 workers and the communities that depended on those stores, the math looks very different.

This article was created with AI assistance and human editing.

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