Kroger sees Q3 impairment charge of ~$2.6B

The Kroger (KR) Co. announced updates to its eCommerce plan, resulting in a differentiated and simplified customer experience, new households shopping at Kroger, and immediate eCommerce profitability improvements. Kroger expects these updates to have a positive effect to eCommerce operating profit of approximately $400M in 2026. This will be used to improve the customer experience through lower prices and better store conditions while also improving operating margins. The company expects to incur impairment and related charges in the third fiscal quarter of 2025 of approximately $2.6B as a result of these closures and the automated fulfillment network not meeting financial expectations. The company expects these closures to have a neutral effect on its identical sales without fuel. Kroger’s hybrid eCommerce offerings will deliver accelerated online growth, using its strong and growing store footprint, well-established third-party delivery providers, and automated fulfillment facilities where applicable.