Kroger, a cornerstone of the American grocery landscape, is embarking on a significant transformation, marked by both strategic expansions and the difficult decision to close underperforming stores. This multifaceted approach aims to optimize the customer experience and solidify Kroger's position in an increasingly competitive market. While some communities face the loss of their local Kroger, the company is simultaneously investing in new, innovative store formats designed to cater to evolving consumer preferences.

The retail giant has confirmed plans to continue opening new stores throughout the year, even as it initiates mass shutdowns in several states. This seemingly contradictory strategy reflects a broader effort to refine Kroger's footprint, focusing on high-performing locations and adapting to changing demographics and shopping habits. The closures, while undoubtedly impactful for affected communities, are viewed by the company as a necessary step to ensure long-term financial health and sustainable growth.

Beyond simply adding new locations, Kroger is also committed to revamping the layout and design of its stores. These redesigned spaces are intended to be more efficient, intuitive, and visually appealing, creating a more enjoyable shopping experience for customers. This emphasis on store layout is not a fleeting trend but rather a long-term strategy, with plans extending into 2026 and beyond.

The supermarket chain has announced the closure of approximately 60 stores over an 18-month period. This decision stems from internal evaluations that were temporarily suspended during a specific period. The evaluation process thoroughly assessed the performance of each store, taking into account various factors such as sales figures, profitability, and customer satisfaction.

These underperforming locations, according to Kroger executives, failed to meet the company's desired standards. Consequently, these stores will be shuttered gradually over the next 18 months. While the closures represent a difficult choice, Kroger anticipates a "modest financial benefit" resulting from the streamlining of its operations and the reallocation of resources to more promising ventures.

Despite the closures, Kroger's interim CEO, Ronald Sargent, emphasized the company's commitment to growth and innovation. During a recent earnings call, Sargent revealed plans for at least 30 "major new store projects" to be completed by the end of 2025. These new stores will represent the latest evolution of the Kroger shopping experience, incorporating modern design principles and enhanced functionality.

A key element of these new stores will be redesigned and "efficient" layouts aimed at improving the shopping experience for guests. This includes optimizing product placement, streamlining checkout processes, and creating a more comfortable and inviting atmosphere. Kroger is investing heavily in understanding customer preferences and incorporating those insights into its store designs.

New store openings are a significant focus for Kroger moving into next year, according to the interim CEO. The company recognizes the importance of expanding its presence in key markets and reaching new customers. These new stores will serve as showcases for Kroger's latest innovations and offerings.

"In 2026, we expect to increase store openings by 30%, helping us grow both in-store and online sales faster," he told investors and analysts. This ambitious goal underscores Kroger's confidence in its future and its commitment to capturing a larger share of the grocery market.

Among the new openings and remodels will be Kroger Marketplace store designs. These larger and more modern locations offer a wider variety of merchandise for shoppers. Think of them as a hybrid between a traditional grocery store and a department store, providing a one-stop shopping destination for busy families.

Kroger Marketplace stores offer an expanded selection that includes clothing, home goods, toys, and even specialty food and beverage options like coffee kiosks, cheese counters, sushi counters, and drive-thru pharmacies. This diverse range of products and services aims to cater to a broader range of customer needs and preferences.

For example, a recently opened Kroger Marketplace in Lexington, Kentucky, spans a massive 123,000 square feet. This impressive store features wider aisles, making navigation easier and more comfortable. The broader product selection provides customers with unparalleled choice and convenience, solidifying Kroger's position as a leading retailer in the region.

Recognizing the importance of catering to local tastes and preferences, some Kroger stores are adjusting their operations to appeal to the specific needs of customers in their area. This localization strategy involves tailoring product selections to reflect the demographics and cultural diversity of the surrounding community.

For instance, a Kroger store in Houston has expanded its selection of Hispanic food and drink offerings. This proactive approach ensures that the store better serves the needs of its Hispanic customers, providing them with familiar products and a more personalized shopping experience.

Kroger aims to offer a more personalized experience with this move. By understanding the unique needs and preferences of each community, Kroger can create stores that truly resonate with local shoppers, fostering loyalty and driving sales.

To further enhance customer convenience, Kroger offers a flexible return policy. Shoppers can return items with or without a receipt, providing a hassle-free experience. This policy reflects Kroger's commitment to customer satisfaction and its willingness to go the extra mile to resolve any issues.

All Kroger Co. Family of Stores accept returns of items purchased at any location within 30 days of purchase. This unified policy ensures consistency across all Kroger brands, making it easier for customers to return items regardless of where they were originally purchased.

Customers can use digital or paper receipts to get a refund. This flexibility caters to different customer preferences, allowing shoppers to choose the method that is most convenient for them. Kroger understands that a smooth return process is essential for building customer trust and loyalty.

The refund will be returned in the same payment method the purchase was made, either going back on a card or handed back in cash. This straightforward approach simplifies the refund process, ensuring that customers receive their money back quickly and efficiently.

Customers wanting to return more than $10 will receive a store merchandise gift card for the value. This policy encourages customers to continue shopping at Kroger, while also providing them with a convenient way to use their refund.

Customers who spent less than $10 will receive cash. This ensures that even small refunds are handled promptly and efficiently, demonstrating Kroger's commitment to treating all customers fairly.

The supermarket chain has also faced some criticism recently over two specific store closures in Virginia and Tennessee. These closures, scheduled for September 19, have sparked concerns about the impact on local communities, particularly in rural areas with limited access to alternative grocery options.

United Food & Commercial Workers Local 400 Union president Mark Federici has argued that the closures will put great strain on the local communities. He claimed it will "not only result in fewer good, union job opportunities, [but] it will further limit food access in rural areas where there are few if any alternatives to buy groceries," per Newsweek.