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Major U.S. Grocers Trim Store Footprints as Kroger Moves Forward on Giant Eagle Deal

Companies are cutting weak locations to redirect capital into stronger markets and bigger-format stores, raising local food-access risks.

Overview

  • Kroger announced in June 2025 that it would close 60 underperforming stores and has already shuttered dozens as it continues that program while pursuing a $1.65 billion acquisition of Giant Eagle expected to close in 2027.
  • Albertsons has carried out network reviews after the blocked merger talks and closed about 30 locations in 2025 with additional Safeway shutdowns in 2026 tied largely to expiring leases.
  • Grocery Outlet disclosed plans in March 2026 to close 36 stores and Aldi has also cut select 2026 locations even as both discount chains state longer-term expansion goals.
  • Retailers say closures are tactical moves to boost returns by concentrating investment in higher-performing markets and larger-format stores, and they report placing many affected employees in nearby locations when leases or union agreements allow.
  • The wave of cuts is leaving some neighborhoods with fewer full-service grocery options, creating the risk of local food shortages and heavier strain on remaining stores as chains refocus after rapid past expansion.