Kroger and Walgreens Close Underperforming Stores to Cut Costs

Major U.S. retailers are shuttering underperforming locations to streamline operations. The Kroger Co. announced plans to close approximately 60 stores over an 18-month period to eliminate sites that are not delivering sustainable results. CEO Gregory Foran stated the company must become more competitive and consistent to face pricing pressure from rivals such as Walmart, Costco, and Amazon. The Kroger Co. has already completed about half of these closures and intends to offer alternative roles to affected associates. These actions follow a delay in store reviews caused by the company's pursuit of a merger with Albertsons.

Separately, Walgreens Boots Alliance is executing a multiyear restructuring plan to address declining drug reimbursement rates and competition from online pharmacies. Now a privately held company following its 2025 acquisition by Sycamore Partners, Walgreens Boots Alliance slowed its closure pace, expecting to shut fewer than 100 stores in 2026 compared to internal projections of 700. The chain has confirmed 15 closures across 12 states and Washington, D.C., prioritizing sites with expiring leases or negative cash flow.

Beyond retail storefronts, Walgreens Boots Alliance reduced its workforce by hundreds of jobs and closed a 500,000-square-foot distribution center in Houston on June 1, 2026. Despite these cuts, Walgreens Boots Alliance remains the second-largest pharmacy chain in the United States with more than 8,500 locations.