In its 2025 first-quarter financial results, Kroger announced it’s closing 60 stores over the next year and a half. The decision comes after the merger with rival Albertsons collapsed and the companies became entangled in a legal battle.

Kroger said in a press release that it’s taking a $100 million impairment charge on the closures, but the brand is gaining a modest financial benefit that will be reinvested in the customer experience, so “this will not impact full-year guidance.” Also, it will offer roles in other nearby stores to all affected employees.

CNN Business reported that interim CEO Ron Sargent said “not all of our stores are delivering the sustainable results we need,” and that the company had not reviewed its locations during the merger process as it usually does every year.

In a press release, the CEO also said first-quarter sales were mainly led by pharmacy, e-commerce, and fresh produce. Total company sales were $45.1 billion in the first quarter, compared with $45.3 billion for the same period last year, and gross margin increased to 23% from 22% last year.