142-year-old grocer closing 39 locations

In today’s economy, consumers are being choosier about how they spend their money. That makes sense, given the way inflation and tariffs are driving costs up for just about everybody.

Think about it this way: If you’re down to the last $100 in your bank account until your next paycheck arrives, are you going to spend the money buying fun clothing from Target? Or are you going to head to your local supermarket to make sure you’re able to stock your fridge?

For this reason, you’d think grocery stores would be poised to shine at a time when consumers are feeling squeezed financially. But a number of larger chains have announced store closures in 2025, including:

• Albertsons

• Grocery Outlet

• Safeway

• Shaw’s

• Stop & Shop

• Winn Dixie

“The idea that supermarkets are recession-proof doesn’t hold up anymore,” says retail expert and RTMNexus CEO Dominick Miserandino. “Margins are razor-thin. Labor, tariffs, and energy costs are rising.”

Smaller grocers are having an especially tough time in today’s economy.

“The U.S. grocery business generates incredibly low profit margins,” says Retail Analyst Bruce Winder. “The industry has a high concentration of just a few players who are massive and work on volume. Names like Walmart, Kroger, Costco, and Albertsons. If you are not one of the big firms, you really can’t compete on price.”

But even the biggest players in the grocery space are starting to feel the pain. And one major supermarket chain is moving forward with significant store closure plans.

Kroger opened its first supermarket in 1883. Since then, the company has grown its grocery store footprint to more than 2,700 stores across 35 states.

Grocery giants like Kroger have a huge advantage in the retail space. They can discount items as loss leaders to draw in customers, thereby capturing more of their dollars.

Related: Aldi adds convenient new perk many customers can’t afford

But even behemoths like Kroger are not immune to store closures. And the company has shared closure plans for at least 39 locations in the near term.

Some of the stores slated for closure are Kroger’s namesake stores. Others are a mix of stores Kroger’s operates that include:

• Harris Teeter

• Pick ‘n Save

• Fred Meyer

Some regions are being hit particularly hard in the context of closure. The Chicago and Milwaukee metro areas, for example, face multiple store closures.

Despite Kroger’s massive footprint, it’s not immune to competition.

“[Kroger is] being impacted by Costco, Walmart, Amazon, Target, and others that have smartly leaned into grocery as a way to drive sales, tapping into and leveraging the recurring nature of grocery shopping,” says retail expert Chris Versace.

When a giant like Kroger opts to close stores, there’s usually a good reason for it.

As Miserandino points out, “The stores closing now aren’t necessarily failing.” Rather, he says, Kroger is “trimming the fat to survive a new kind of economy.”

Winder agrees.

“Even large names close stores as online grocery shopping grows and chains naturally prune underperforming units,” he explains.

Related: Costco’s aggressive new tactic upsets members

But the reality is that when big-name supermarkets close their doors, shoppers are left with fewer choices. In today’s economy, that could be a very dangerous thing.

Grocery chains like Kroger tend to be well-positioned to offer money-saving discounts and promotions, while smaller grocers may have to maintain higher price points to keep the lights on. So losing big supermarkets could be extremely detrimental to people who are living paycheck to paycheck with no wiggle room in their budgets.

The mere fact of having to drive a longer distance to buy groceries following the closure of a neighborhood supermarket could also be terrifying for consumers who are down to their last dollars and can’t afford the extra gas.

So while Kroger may be making a smart decision that benefits its business, consumers who rely on it as their go-to source for groceries are the ones who will ultimately feel the pain.

Related: Walmart makes a major purchase customers may not notice

This story was originally reported by TheStreet on Oct 29, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.