Kroger Isn't The Only Grocery Chain Closing Locations After Failed Merger

If you think the fallout from your own personal drama can be damaging, just wait 'til you see what happens to big grocery store companies when things go wrong. For years, Kroger has been embroiled in a controversial attempt to merge with rival grocery chain Albertsons, with an initial deal announced back in 2022. However, there was swift backlash to the proposed deal — which would have united two of the largest grocery chains in the country — over concerns that the alliance would limit competition and raise prices for consumers. 

Those concerns eventually sank the deal and led to it being blocked in court. But the drama hasn't stopped there. Both Albertsons and Kroger are now dealing with the financial fallout of the failed deal, and Kroger has just announced that it will be closing up to 60 stores around the country over the next 18 months to help cut costs. There are not many details about the specifics of the store closures yet, and only a handful of locations have been revealed. 

However, the list includes not just Kroger locations, but some other Kroger-owned brands as well. The only reasoning given by the company in its Q1 2025 earnings call was that these locations were not delivering sustainable results. As of right now, the actual Kroger locations that are being closed are mostly clustered in Texas and Georgia. Two other brands owned by Kroger that have revealed closures are Pick 'n Save in Wisconsin, which will close five Milwaukee-area stores, and Harris Teeter, which will shut down four locations in the Washington, D.C. area.

Kroger is the country's oldest grocery chain and owns numerous other regional chains, including some big names like Ralphs, Dillons, and Smith's, along with Harris Teeter, Pick 'n Save, and other smaller brands. Altogether, Kroger Co. owns over 2,700 grocery stores nationwide. However, not all of these stores have had closures announced, and with only 60 stores being closed, some may not be affected at all. 

The same call also revealed that the company has seen a lot of success with people who are spending more money eating at home as the cost of going out rises, which has been a particular boon to Kroger's more affordable private label brands. So, there is no sign that Kroger is in serious trouble beyond these specific closures. But the aftermath of this failed deal could be just beginning. Despite never acquiring its rival, Kroger reportedly spent almost $1 billion in fees and legal expenses in the effort. 

And Kroger's legal bills are still mounting. After the failed takeover, Albertsons turned around and sued its former partner, alleging that Kroger had failed to make a full effort to get regulatory approval because it feared the backlash that ensued after the initial announcement. Kroger has also filed its own countersuit against Albertsons, alleging that the company worked behind its back to sell locations to another retailer while the deal was ongoing. Who knew billion-dollar corporations could be so messy?