California — Grocery shoppers across the country are seeing changes at one of America’s largest supermarket companies as Kroger continues a broad store-consolidation strategy that includes dozens of closures nationwide. Two California locations are among the stores affected, even as the Cincinnati-based retailer prepares for one of its biggest expansion moves in years.
The changes reflect a broader effort by Kroger to shift investment toward stores it considers stronger performers while reducing its exposure to locations that have struggled.
Two California Stores Are Affected
According to the locations identified in reports about Kroger’s store closures, two California stores have been shut down as part of the company’s broader restructuring.
The affected locations are:
- Foods Co. — 8122 Gerber Road, Sacramento
- Food 4 Less — 19200 Soledad Canyon Road, Santa Clarita
The Santa Clarita location is expected to reopen under the Ralphs banner, meaning shoppers in that area could eventually continue to have access to a Kroger-owned grocery store at the same location.
The changes are part of a nationwide effort involving more than 60 underperforming stores, rather than a decision to abandon the grocery business.
Kroger Is Consolidating Its Store Network
Kroger’s store reductions extend well beyond California.
Reports indicate that five stores each in Virginia and Wisconsin are also being closed, along with locations in Illinois, Indiana, Colorado, Kentucky, Maryland, North Carolina, Tennessee and West Virginia.
The company has framed the closures as a strategic consolidation, with resources being redirected toward newer or better-performing stores.
In some markets, Kroger has been encouraging shoppers to move toward larger Kroger Marketplace locations. The company recently opened a 122,000-square-foot Marketplace facility in West Virginia, illustrating the type of larger-format store it is continuing to invest in.
Giant Eagle Acquisition Adds Nearly 200 Stores
While Kroger is closing locations, the company is also significantly expanding through acquisitions.
In July, Kroger announced a $1.65 billion agreement to acquire Giant Eagle, a regional grocery and pharmacy retailer. The deal includes 197 supermarkets and 11 standalone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland and Indiana. The transaction is expected to close in 2027, subject to regulatory approval and other closing conditions.
Kroger CEO Greg Foran said the acquisition would expand the company’s reach into adjacent markets and provide opportunities to build on Kroger’s grocery and pharmacy operations.
The transaction includes $1.25 billion in cash and approximately $400 million in assumed liabilities.
California Shoppers Are Already Facing Higher Grocery Costs
The store changes come as grocery costs remain a major concern for California households.
The state has consistently ranked among the most expensive places in the country for groceries, putting additional pressure on shoppers who rely on affordable supermarket options.
That makes the closure of discount-oriented stores such as Foods Co. and Food 4 Less particularly significant for nearby customers, although the planned Ralphs conversion in Santa Clarita could preserve a Kroger-owned grocery option there.
Kroger’s broader strategy appears to be focused less on simply shrinking its footprint and more on changing where and how it invests.
Kroger’s Retail Strategy Is Changing
Kroger operates thousands of supermarkets under numerous regional banners, including Ralphs, Fred Meyer, Harris Teeter and King Soopers.
The company’s current strategy combines store closures, remodels, larger-format locations and acquisitions as it attempts to strengthen its position in an increasingly competitive grocery market.
For shoppers, however, the impact is much more immediate: some familiar stores are disappearing while others are being converted or upgraded.
The two California closures demonstrate how that strategy is playing out at the local level. While one location is leaving the Foods Co. or Food 4 Less format, the Santa Clarita store’s expected conversion to Ralphs means the property may continue serving grocery shoppers.
As Kroger moves forward with its broader restructuring and planned Giant Eagle acquisition, customers will be watching closely to see whether additional store changes affect their communities.
What do you think about Kroger’s decision to close underperforming stores while expanding through acquisitions? Would you continue shopping at another Kroger-owned store if your local location closed? Share your thoughts in the comments below.
