If Kroger is one of your favorite supermarket chains, I’m sorry to tell you that the company is closing two stores in the southeast of Texas, specifically in Houston and Spring. The news was known when a community group on Facebook commented that workers from this company had already been talking about this closure. Later, Kroger officially confirmed the rumors.
The closure is part of a bigger strategy that will affect different areas of the U.S. Even though the company talks about future growth, the truth is that several stores will stop operating in the next few months. So, let’s learn more about this.
Kroger stores closing in Houston and Spring
Kroger confirmed that it will close two of its stores in Houston: one located in the Heights neighborhood and the other one in Spring. According to a spokesperson of the company, both will officially close on April 10.
The company explained that this measure is part of a “company-wide decision” designed to operate more efficiently and ensure the long-term health of the business.
Not only affects the decision to these two stores. In June, Kroger announced that it’s planning on closing 60 supermarkets in the entire country during a period of 18 months (without specifying the locations). Since then, the city of Houston has already lost other Kroger stores in areas like Hedwig Village, Spring Branch and Veterans Memorial Drive, near Bammel North Houston Road.
The reason behind these closures
Kroger’s decision to close its stores doesn’t mean the company is disappearing. But, some stores may not have been performing as strongly as expected, leading the company to concentrate its resources elsewhere.
What’s more, Kroger stated that employees affected by this decision will have the chance to transfer to other stores, which might be a relief for them.
Also, the company has some plans to make Kroger grow. After 7 years without opening new stores in the region, the comàny is planning on remodeling and opening new stores in the Houston area.
Rudy DiPietro, President of Kroger’s Texas Division, told the Houston Business Journal in November that the company aims to open “a bunch” of new stores in Houston over the next three to five years. He emphasized that Kroger has ambitions to grow in markets showing strong growth potential.
This indicates that Kroger’s current strategy includes closing certain stores while planning new openings in other locations.
Other major retailing closures
Apart from Kroger, there are other big companies facing difficult economic situations. One of them is Saks Global, which is the parent company of several well-known luxury brands, including: Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
Recently, Saks Global filed for Chapter 11 bankruptcy protection, which allows a company to reorganize its debts while continuing to operate. The company was trying to manage its debts of about $4.7 billion, but it ended up making use of this legal process. However, it was able to reach a financial agreement for $1.75 billion with creditors, known as debtor-in-possession financing, to help continue operations at select brands.
As part of its restructuring process, Saks Global confirmed it will close eight Saks Fifth Avenue stores and one Neiman Marcus store by the end of April. In addition, it will shut down 14 standalone Fifth Avenue Club personal styling locations and the majority of its Saks OFF 5th outlets.
These closures are intended to reduce costs and help the company restructure its business.
So…
As major retailers continue to adapt to changing market conditions, more adjustments may follow. For now, Kroger’s message is clear: while some locations are closing, the company sees this as a step toward maintaining its overall strength and competitiveness in the years ahead.