As per its expansive plan for retrenchment by 2025, Kroger will close both stores located in Houston: at 9325 Katy Freeway and 2300 N Gessner Road, by September 30, 2025. Thus the number of Houston stores closing for the year is drawn into score. Four stores are closed now by year-end and thus furthers the agitation amongst customers and employees.
History of Kroger’s retrenchment 2025
An unprecedented strategy of closures from Kroger started in early 2025 across the footprint of its other national chains. Altering habits by consumers, increased operational costs, and most importantly, underutilizing stores are the reasons cited by Kroger in its announcement for closing up to 40 stores nationwide, especially in Houston where every fourth store would close by end of September. Closing of such stores signifies a drastic shrinking of one of the largest grocery markets in Texas. Not to mention the general challenges facing the traditional supermarket operators in the increasingly competitive environment by discount chains and online grocers.
Details of two more Houston stores
That same day, Shayna Barrett, Corporate Affairs Manager at Kroger, confirmed with USA TODAY the closure of two more outlets located in Houston: Katy Freeway at 9325 Katy Freeway and N. Gessner Road at 2300 N. Gessner Road; both of which will close their doors on September 30, 2025.
- 9325 Katy Freeway: Located in one of the busiest retail corridors west of downtown Houston, this store has seen rising foot traffic decline due to the competition posed by new mixed-use developments in the area.
- 2300 N. Gessner Road: Located in the very center of the Spring Branch neighborhood, this store has also suffered stagnant sales because of an increased competitive environment with other discount grocers and specialty markets catering to their local demographic.
Employees from both locations have already been briefed and are to be considered for transfers to any of the Kroger stores within the region, if spaces are available. Moreover, all existing salaries, benefits, and accrued paid time off will be honored to such affected associates by the company.
Impact on the neighboring community
Such impending closings have raised much concern for long-term Kroger customers, who relied upon the stores for convenience, variety, and community involvement. This closing is potentially a hardship for many residents, especially seniors and people without reliable transportation. Already, community groups are working with civic leaders to find alternate solutions, including introduction of pop-up markets, improved delivery options, and partnerships with smaller grocers to fill in access gaps to fresh food and other daily necessities.
Transition of employees and support
A transition plan is already set by Kroger for employees of closing stores. The associates affected are given options to transfer to other nearby Kroger stores, including those located in the Galleria area and along Westheimer Road. Below are the severance deals to accompany a transfer by Porter Kroger:
- Continuation of health benefits for up to three months
- Career counseling and job placement assistance through Kroger’s in-house employment services
- Eligibility for rehire on future openings in the Kroger family of companies
These actions are really meant to alleviate the pressure on employees, affected personally and professionally. Unions and advocates of workers have called on more relief such as relocation allowances and expansion of range of benefits to be made.
What next for Houston shoppers?
With the closures of the Katy Freeway and N. Gessner Road stores, residents of Houston now have to find alternative sources of groceries and everyday goods. Kroger even suggested that customers can visit other stores open within 10 miles that offer enhanced online order pickup and home delivery.
Kroger’s quick example of what is shaping the supermarket landscape today came from the announcement of closures at 9325 Katy Freeway and 2300 N. Gessner Road. This major strategic retrenchment of the company is intended to strengthen its core operations. However, the immediate consequences will be felt in the lives of Houston’s communities and employees, highlighting the human side of corporate restructuring. What will be critical for Kroger in order to continue to be resilient in a competitive market is its balance between cost efficiency and customer convenience and associate welfare.