Grocery Chains Announce Widespread Store Closures Amidst Falling Sales
Major supermarket companies, including Kroger, Safeway, and Grocery Outlet, are closing dozens of underperforming locations across the U.S., raising concerns about potential food deserts.
Several major supermarket chains, including Kroger, Safeway, and Grocery Outlet, are planning to close dozens of underperforming stores across the United States, citing declining sales and the need to streamline operations.
Kroger, one of the nation's largest grocers, announced it would reduce its store count by 60 locations over the next 18 months. The closures will primarily impact brands under its ownership, such as Fred Meyer, Fry's Food and Drug, Harris Teeter, Foods Co, Food 4 Less, King Soopers, Mariano’s, Pick ‘n Save, and QFC. This move follows Kroger's acquisition of Giant Eagle for $1.65 billion, a deal that is expected to add 197 supermarkets and 11 standalone pharmacies to Kroger's network. The acquisition is anticipated to be finalized next year.
Discount grocer Grocery Outlet is also set to close 36 stores, with a significant portion, about 30%, affecting its East Coast presence. The company, headquartered in California, cited underperformance as the primary reason for these closures. These 36 stores represent approximately 6% of Grocery Outlet's total locations.
Safeway, a subsidiary of Albertsons Companies, is also shuttering a number of stores as part of a broader plan by its parent company to reduce its retail footprint. Albertsons operates more than 900 locations nationwide across various brands, including Vons, Jewel-Osco, Acme Markets, and Shaw's. Albertsons closed at least 30 locations in 2025, with an additional 12 planned for 2026. Safeway has so far closed three locations, which were tied to expiring leases. A Safeway representative stated the decision was made to reinvest resources into other existing stores.
Additionally, Walgreens has closed over a dozen underperforming stores nationwide as part of a multiyear strategy to cut costs. The pharmacy giant, with approximately 8,500 stores, announced in 2024 its intention to close roughly 1,200 underperforming locations over the next three years to save $1 billion in costs. The company has since scaled back its closure plans after going private last year.
Experts warn that these widespread closures could exacerbate the problem of food deserts, areas where communities have limited access to affordable, healthy, or fresh food options. The consolidation and closure of supermarkets may disproportionately affect lower-income or rural communities that rely on these stores for essential groceries.