A Kroger location in McKinney is among dozens that the grocery chain plans to close following its failed merger with Albertsons.
Kroger is closing the store at 1707 West University Drive, along with about 60 other stores in the United States, the Dallas Morning News reported. Kroger has over 200 stores in Texas and over 1,200 across the country.
“This closure is part of a larger company-wide decision to run more efficiently and ensure the long-term health of our business,” company spokesperson John Votava said.
The North Texas grocery landscape is undergoing rapid change.
Kroger, which is one of the largest grocery chains in the country, has opened new stores and started construction on others, including one in Fort Worth’s Sendera Ranch neighborhood. Meanwhile, rival chains are also adjusting.
Tom Thumb is closing a Plano location after recently shuttering a store in Allen, while other grocers such as Walmart, Sprouts Farmers Market and H-E-B continue to expand in the region.
The merger between Kroger and Albertsons was blocked by federal and state courts last year. With the merger off the table, Kroger is focusing on streamlining operations and accelerating store development. CEO Ron Sargent said the company expects to complete 30 major developments next year.
“We’re simplifying our business and reviewing areas that will not be meaningful to our future growth,” Sargent said during a Friday conference call. “Unfortunately, today, not all of our stores are delivering the sustainable results we need.”
McKinney is one of Dallas’ hottest suburbs for population growth and development. Large-scale projects underway include a $300 million amphitheater and Creation Equity’s $1.3 billion mixed-use development near the future U.S. 380 bypass.
The city recently approved incentives for Craig International’s $324 million JW Marriott resort at Craig Ranch. And SLX Capital is under construction with a $27 million retail project called the Eldorado Neighborhood Shops at the intersection of Stonebridge Drive.
—Rachel Stone
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