Kroger to close 60 stores in the next 18 months
UC expert breaks down what it means for the hometown grocer
Kroger announced in its latest earnings release that it plans to close 60 of its stores in the coming months despite strong sales. A Kroger spokesperson told WLWT that the company does not anticipate any closures in the Cincinnati or Dayton areas.
Gary Painter, PhD, academic director of real estate at Lindner, spoke with WLWT to provide context on why the closures are not necessarily a cause for concern, regardless of which stores may shut down.
“With this announcement, we just simply don’t know all the details surrounding what is motivating this particular set of decisions,” he told WLWT. Painter explained that it is normal for companies to strategize their store portfolio to optimize factors including location, foot traffic and rent, which could potentially lead to new stores opening after certain closures occur.
Kroger also brought up economic uncertainty in its report, but Painter said the company’s outlook is in line with the Federal Reserve’s observations. “There’s no reason for us to speculate that they’re viewing the macroeconomy differently than the Fed is,” he said.
“The Fed has said very straightforwardly why they think the macroeconomy is uncertain. We have the potential for tariffs and tariff deals or trade deals. We don’t know how that is going to work out,” Painter added.
Featured image at top of a Kroger storefront. Photo/iStock/RiverNorthPhotography.
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