The closure of local grocery stores is becoming a growing concern in many neighborhoods, adding to the already increasing costs of groceries. Recently, Kroger announced during its June 2025 earnings call that it would be closing 60 locations over the next 18 months due to underperformance. This decision also affects other brands under the Kroger umbrella, such as Fred Meyer, Fry’s Food and Drug, Harris Teeter, and more.
In addition to Kroger, discount grocery stores like Aldi and Grocery Outlet are also facing closures. Aldi is closing stores in Minnesota, Illinois, Texas, and Wisconsin as part of a plan to expand to 3,200 locations by 2028. Grocery Outlet announced the closure of 36 locations in March 2026 due to rapid expansion plans that stretched the chain too thin.
Now, Safeway has joined the list of grocery stores closing down locations. The recent closure of the Safeway store in Newport, Oregon, which had been serving locals for 30 years, follows closures in Washington, D.C., and California’s Bay Area. Safeway stated that they are evaluating their store footprint and real estate portfolio to reinvest resources into other existing stores.
These closures are part of a strategic shift for Safeway’s parent company, Albertsons. With 30 Albertsons locations closed in 2025 and another 12 set to close in 2026, the company is making decisions to maintain profitability and efficiency. CEO Susan Morris mentioned during the first-quarter earnings call that they are constantly evaluating their store base to ensure profitability.
The impact of these closures on consumers is significant, especially in areas where there are limited alternatives nearby. Neighborhoods that have relied on these stores for decades are now left without a full-service grocery option, disrupting shopping habits and food access for residents. Safeway closures in 2026 include locations in Hayward, California, Washington, D.C., and Newport, Oregon, adding to the list of closures in the Bay Area.
While these closures may create challenges for residents, there is a silver lining in that employees are being transferred to nearby locations instead of being laid off. Safeway and Albertsons are working to place as many associates as possible in other stores, ensuring that their workers are taken care of during these transitions.
In conclusion, the closure of local grocery stores not only affects consumers but also has ripple effects on the community. As grocery giants make strategic decisions to streamline operations, it is essential to consider the impact on neighborhoods and residents who rely on these stores for their daily needs.
