One other grocery chain quietly shuts down extra shops

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Whereas concern continues to rise about the price of groceries, one other main challenge is quietly cropping up in your neighborhood: native grocery shops closing.

Throughout its June 2025 earnings name, Kroger introduced that it will shutter 60 areas over the following 18 months, citing underperformance. The closures additionally have an effect on different manufacturers underneath the corporate umbrella, together with Fred Meyer, Fry’s Meals and Drug, Harris Teeter, Meals Co, Meals 4 Much less, King Soopers, Mariano’s, Choose ‘n Save, and QFC.

Many customers battling greater meals prices have turned to low cost grocery shops for reduction, however these are additionally winking out of sight in some areas. Aldi is one other chain closing shops in 2026, with areas shuttering in Minnesota, Illinois, Texas, and Wisconsin. Whereas the chain has plans to develop as much as 3,200 areas by 2028, it wants to chop underperforming shops to achieve that purpose.

Grocery Outlet additionally falls into the low cost class — and it is also closing shops. The chain introduced in March 2026 that it will shutter 36 areas. CEO Jason Potter mentioned that the chain stretched itself too skinny with a fast growth plan. 24 areas included within the closure are on the east coast, translating into much less low cost grocery choices for a lot of customers in want of them.

Now, one other grocery has introduced new closures, some affecting areas which have been open for many years.

Safeway shutters extra shops

Safeway’s most up-to-date closure was Newport, Oregon, at 2220 N Coast Hwy, a location that served locals for 30 years. The shop closed its doorways in July. This closure follows the Hechinger Mall location in Washington, D.C., which was open for 40 years and shuttered on Might 16. Earlier than that, the Hayward Safeway on Jackson St. in California’s Bay Space closed in February 2026.

“Like all retailers, we’re always evaluating our retailer footprint and have to take a look at each angle of the enterprise. This consists of our actual property portfolio. We’re coming to the tip of our lease at this location, and have made the choice to reinvest our sources into different current shops,” Safeway mentioned in a press release in response to the Washington retailer closure.

Associated: Grocery large rethinks provide chain plans as retailer closures mount

The closures are a part of a strategic shift for Safeway’s father or mother firm, Albertsons. 30 Albertsons areas closed in 2025, and one other 12 are on the chopping block for 2026 thus far.

“We’re regularly our retailer base and making selections on whether or not to maintain the shops or can we flip them round, can we alter the profitability or making the tough selections sometimes to exit these shops. And we have not seen a dramatic shift or improve in retailer profitability at the moment. Once more, it is a fairly small variety of our fleet,” CEO Susan Morris mentioned throughout the firm’s first-quarter earnings name.

Extra Retail:

Kroger tried to purchase Albertsons for $24.6 billion in October 2022, however the merger was blocked by the Federal Commerce Fee in February 2024. Albertsons responded by suing Kroger, saying it did not do sufficient to safe regulatory approval, and Kroger countersued. The lawsuits are at the moment ongoing.

How native grocery closures impression the buyer

For these corporations, closing underperforming areas helps them keep on price range and make key strikes in different areas. However for the customers who’ve relied on the shops for many years, it creates a a lot bigger downside.

Every closure removes a full-service grocery possibility from that neighborhood, which issues most in areas with out many options close by. Each the Washington, D.C. and the Oregon Safeway had operated for many years — lengthy sufficient that residents constructed buying habits, transportation routines, and in some circumstances, food-access dependence round them.

Safeway retailer closures in 2026 (thus far)

  • 231 W Jackson Avenue, Hayward, CA

  • 1601 Maryland Ave NE, Washington, D.C.

  • 2220 N Coast Freeway, Newport, OR

That is additionally the fourth Bay Space Safeway to shut in simply over a yr, following earlier shutdowns in San Francisco’s Fillmore district, Pinole, and Vallejo. When a number of shops in the identical metro space shut in succession, remaining shops take up extra shopper site visitors (longer traces, thinner inventory) and a few pockets of the area find yourself genuinely underserved.

Whereas these closures might make life tougher for a lot of residents who relied on these shops, there’s one vibrant spot within the story. All 76 staff on the Hayward retailer have been transferred to close by areas quite than laid off, in keeping with the union’s collective bargaining settlement, and this sample has held throughout most of Safeway’s different closures. Albertsons itself mentioned it really works “to position as many associates as doable in different shops.” So whereas customers might want to discover a new native grocery, a minimum of Safeway’s employees are being taken care of — one thing that feels uncommon in company America nowadays.

Associated: Kroger’s CEO takes a shot at Costco and Aldi

This story was initially printed by TheStreet on Aug 11, 2026, the place it first appeared within the Retail part. Add TheStreet as a Most popular Supply by clicking right here.

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