As economic pressures mount and consumer habits evolve in 2025, the American grocery scene is undergoing quite a transformation. From retail giants to regional favorites, supermarket chains across the country are strategically reassessing their physical footprints, closing underperforming locations while aggressively pursuing growth in promising markets.
This shifting terrain reflects not just financial challenges, but deeper changes in how Americans shop for food in an increasingly digital marketplace. To that effect, here’s an in-depth look at nine major grocery retailers shutting down locations, the reasoning behind these decisions, and what these changes mean for communities nationwide.
Walmart
Walmart might seem untouchable with approximately 4,600 stores across the United States, but even the retail giant is feeling the economic pressure. The multinational corporation that’s been ranked as the world’s largest company in terms of consolidated revenue is closing several stores all through 2025, with locations in California, Georgia, and Ohio already shutting their doors.
The good news is that this isn’t a sign of Walmart’s demise. The retailer has ambitious plans to build or convert more than 150 stores over the next five years while remodeling many existing locations. Still, if you’re a regular at certain Walmart locations, you might want to check if your local store is on the chopping block.
Albertsons
Albertsons has been through a rollercoaster ride recently. After announcing a $24.6 billion merger with Kroger in 2022, the deal was ultimately blocked in court over concerns about market domination. The chain is now having to face the consequences alone.
In an earnings call in January 2025, Albertsons’ leadership revealed plans to close numerous stores as part of a streamlining effort, noting that their portfolio was “outsized” in certain areas. The grocery chain hasn’t specified which locations are likely to be affected, but the closure process could reportedly extend over several years.
The company is also looking to open stores in other areas as part of its restructuring strategy, signaling a strategic shift rather than a retreat.
Kroger
With nearly 2,800 stores nationwide, Kroger is pretty much a grocery powerhouse, but like other grocery chains on this list, Kroger has also begun closing underperforming locations. Stores in Nashville, Tennessee, and The Woodlands, Texas, for example, are shutting down due to redevelopment projects. The retail company’s 800 Monroe Street location in Nashville will temporarily close in May 2025 for a $22 million remodel.
In late January, Kroger announced the closure of its Belle Meade Plaza store in Nashville due to redevelopment plans in the area. Additionally, Kroger’s Sterling Ridge location in The Woodlands, Texas, will cease operations on May 6, 2025. The company cited changing shopping habits and competition as the primary reasons for this closure and announced that staff at affected stores will be reassigned to other locations.
Winn-Dixie
The beloved Southeastern chain Winn-Dixie has undergone significant changes since its 2023 acquisition by Aldi. Initially, Aldi focused on consolidating operations, announcing closures of four Alabama stores (two in Mobile, one in Phenix City, and one in Vestavia Hills) and a Georgia location. They also revealed plans to convert approximately 220 Winn-Dixie and Harvey’s Supermarket stores to the Aldi format by 2027.
However, a pivotal shift occurred in February 2025: A private investor group led by CEO Anthony Hucker acquired 170 Winn-Dixie and Harveys stores back from Aldi. This move ensured the survival of the Winn-Dixie brand in five key states (Alabama, Florida, Georgia, Louisiana, and Mississippi). Southeastern Grocers now plans to modernize these remaining stores and expand their offerings.
Safeway
Safeway is experiencing a particularly tough year, with multiple locations set to close in California and Maryland due to safety concerns and financial pressures. In February, the chain shuttered its Webster Street store in San Francisco’s Fillmore District after 40 years, citing “ongoing concerns about associate and customer safety as well as persistent issues with theft”. Despite reporting strong sales in recent quarters, Safeway’s decision reflects broader challenges facing urban grocery retailers.
More store closures are on the way, including the Vallejo store on Admiral Callaghan Lane in the Bay Area, which is scheduled to close in April. The company is also closing its Appian 80 location in Pinole after serving the community for over five decades. This follows a failed redevelopment plan and expired entitlements under new property owners.
Shaw’s
Shaw’s, which operates 125 stores across the region, recently announced the closure of two locations in 2025. Stores in Gloucester, Massachusetts, and Concord, New Hampshire, will also be shutting their doors, though exact closing dates haven’t been specified.
“Like all retailers, we’re constantly evaluating the performance of our stores,” a Shaw’s spokesperson said in a statement. “Closing a location is always a tough decision, but we’re focused on continuing to provide the products and services our customers value most”. Employees from these locations will be reassigned to nearby stores, but it’s a concerning sign for the regional supermarket chain.
The company stated these decisions were based on underperformance but reassured customers that nearby locations would remain operational.
Amazon Fresh
Despite Amazon’s seemingly unlimited resources and market dominance, its brick-and-mortar grocery concept, Amazon Fresh, is struggling to find its footing. The grocery store confirmed that it would close two of its stores located in California and Virginia.
These stores had only been operating for a couple of years before closure, raising questions about whether Amazon Fresh’s “frictionless” technology, which allows customers to simply walk out without scanning items, is actually appealing to shoppers. Some have already begun referring to these locations as “zombie stores”. While Amazon insists it remains committed to the Fresh concept, these closures suggest the e-commerce giant is still trying to figure out the right formula for physical grocery retail.
What is interesting to note is that while it is scaling back in the U.S., Amazon Fresh has expanded aggressively in India, reaching 170+ cities with 50% year-over-year growth.
Piggly Wiggly
Despite having perhaps the most charming name in the grocery business, Piggly Wiggly isn’t immune to 2025’s challenging retail environment. The iconic Southern chain is closing several stores this year due to lease expirations and declining profitability.
In March, a beloved Piggly Wiggly in Columbia, South Carolina, known as “The Social Pig,” announced it would be closing after 50 years of operation. Store operator Darrell Miller explained in a Facebook post that their lease had expired, and they were unable to negotiate terms that would allow the store to continue operating as a Piggly Wiggly. The announcement was met with an outpouring of community support, demonstrating how these local grocery stores often become important fixtures in their communities.
Dollar General
While primarily a discount retailer, Dollar General sells enough grocery items to make this list, and the chain is making some dramatic moves in 2025. In a Q4 2024 investor call, Dollar General announced it had conducted a “store portfolio optimization review” (corporate speak for checking which stores aren’t profitable enough) and would be closing 96 locations by early 2026.
The company is also converting six of its pOpshelf stores to Dollar General outlets and closing additional pOpshelf locations. For many communities, especially in rural areas, Dollar General provides essential access to groceries and household items at affordable prices, making these closures potentially impactful for local residents.
However, since the chain plans to open between 575–600 new locations in 2025, resulting in a net gain of 600 stores, this news shouldn’t be too concerning.