Kroger said it would shutter four Washington, DC-area Harris Teeter stores during the next two months as part of a larger store closing effort that the Cincinnati chain said it would undertake. A fifth Harris Teeter unit on Western Boulevard in Raleigh, NC also closed on July 20. Additionally, two Virginia Kroger stores – in Charlottesville (Emmett Street) and Abingdon – will conclude operations in by September 19.
The specific locations and closing dates are as follows:
- Harris Teeter – 8200 Crestwood Heights Dr., McLean, VA (closed July 20)
- Harris Teeter – 950 S. George Mason Dr., Arlington, VA (closed July 20)
- Harris Teeter – 3600 S. Glebe Rd., Arlington, VA (closing by August 4)
- Harris Teeter – 11845 Old Georgetown Rd., Bethesda, MD (closed July 20)
- Harris Teeter – 5563 Western Blvd., Raleigh, NC (closed July 20)
- Kroger – 1904 Emmett St., Charlottesville, VA (closing August 22)
- Kroger – 466 S. Cummings St., Abingdon, VA (closing September 19)
The closings are part of 60 underperforming stores the large merchant announced it would shutter over the next 18 months.
Ron Sargent, interim CEO of Kroger, addressed the store closure situation at the company’s conference call with financial analysts following the release of its Q1 earnings on June 20 (for the period ended May 24). The former Staples executive and Kroger director who was named chief executive in March 2025 when longtime CEO Rodney McMullen was forced to step down following an ethics scandal, said the closures would not have a material effect on Kroger’s full year financial guidance. In fact, he noted the shuttering of those underperforming units would have a modest financial benefit to the company. He added that the retailer planned to reinvest those gains to enhance the customer experience.
Addressing the analysts, Sargent announced that Kroger would continue its aggressive store remodeling program and has 30 major store projects planned for this year, and an accelerated store opening plan for 2026.
In its first quarter financial breakout, the nation’s largest pure-play retailer recorded a $100 million impairment charge to cover the store closings.
As for its Q1 performance, Kroger had a better than expected 13 weeks. Identical sales (excluding gas) increased 3.2 percent and operating profit increased from $1.29 million to $1.32 million. Additionally, e-commerce revenue increased 15 percent.
“Kroger delivered solid first quarter results, with strong sales led by pharmacy, e-commerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience. Our commitment to driving growth in our core business and moving with speed positions us well for the future. We are confident in our ability to build on our momentum, deliver value for customers, invest in associates and generate attractive returns for shareholders,” Sargent affirmed.
Kroger said it expects to continue to generate strong free cash flow and remains committed to investing in the business to drive long-term sustainable net earnings growth, as well as maintaining its current investment grade debt rating. The company expects to continue to pay its quarterly dividend and expects this to increase over time, subject to board approval.
During the fourth quarter of its fiscal 2024, Kroger entered into a $5 billion accelerated share repurchase program (ASR), which is expected to be completed by no later than the company’s fiscal third quarter 2025. The ASR is being completed under Kroger’s $7.5 billion share repurchase authorization. After completion of the ASR program, Kroger expects to resume open market share repurchases under the remaining $2.5 billion authorization. Kroger expects to complete these open market share repurchases by the end of fiscal 2025, which is contemplated in full-year guidance.
Other full-year 2025 guidance projections include: identical sales (without fuel) of 2.25-3.25 percent; adjusted FIFO operating profit of $4.7-$4.9 billion; adjusted net earnings per diluted share of $4.60-$4.80; adjusted free cash flow of $2.8-$3.0 billion; and capital expenditures of $3.6-$3.8 billion.
