Kroger Closing 60 Ralphs and Food 4 Less Stores

California-based supermarkets Ralphs and Food 4 Less will be closing 60 locations across the country over the next year and a half.

Kroger, parent company of the Compton-headquartered grocery chains, announced plans for the closures in a newly released first-quarter earnings report, the Los Angeles Times reported. So far, it appears none of the planned closures are in California, per USA Today.

While the closures will represent a $100 million loss for Kroger, it will stand to receive a “modest financial benefit,” according to the report. A spokesperson did not answer the Times’ request for comment.

“Kroger is committed to reinvesting these savings back into the customer experience, and as a result, this will not impact full-year guidance,” the company said in the document. All employees currently working at affected stores will receive offers to work at other locations.

Currently, there are 182 Ralphs locations and 90 Food 4 Less locations across California. Besides Ralphs and Food 4 Less, Kroger owns Harris Teeter, King Soopers and other grocery chains across the U.S. In total, the corporation holds more than 2,700 stores across 35 states and the District of Columbia under its various brands.

Kroger has navigated some rough waters in the past year.

In December, its planned $25 billion merger with fellow grocery giant Albertson’s fell through after a federal judge blocked the move. In March, the company’s former chairman and CEO, Rodney McMullen, resigned after an investigation found his personal conduct didn’t align with company ethics, though details on the ouster haven’t been disclosed.

In total, Kroger reported net earnings of $866 million for the first quarter, down from $947 million in the first quarter of 2024. Total company sales were $45.1 billion for the quarter, compared to $45.3 billion in the same period last year.

Meanwhile, Costco is in the midst of a global expansion as more customers flock to the wholesale giant to do their grocery shopping. In the company’s third-quarter fiscal year call last month, CEO Ron Vachris said the company anticipates opening 27 new warehouses, Fox Business reported.

Costco holds 143 locations across California. Its most recent moves in the Los Angeles area include the purchase earlier this month of sites in Mission Viejo and Lake Forest. The company will build a 40-pump fuel station on the site of a former Bed Bath & Beyond next to I-405 in Mission Viejo and open a new warehouse at a defunct Regal Cinema at Foothill Ranch Towne Center.

— Chris Malone Méndez