Kroger has reported growth in identical sales and operating profit for the first quarter and plans to close 60 stores as it works to boost customer experience.

The grocery retailer’s total sales for the quarter ended May 24 were down 0.4 per cent to $45.1 billion. Excluding fuel, Kroger Specialty Pharmacy and adjustment items, sales increased 3.7 per cent.

Identical sales without fuel rose 3.2 per cent and operating profit increased 2 per cent to $1.3 billion.

Chairman and CEO Ron Sargent said the company delivered “solid” first-quarter results, with strong sales led by pharmacy, e-commerce and fresh. 

“We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience,” he added.

During the quarter, Kroger recognized an impairment charge of $100 million related to the planned closure of approximately 60 stores over the next 18 months.

The company expects modest financial benefits from the closures and plans to reinvest these savings back into the customer experience. It said that the plan will not affect full-year guidance.

The retailer has raised its identical sales outlook for FY25, expecting a 2.25-3.25 per cent increase. 

“While first quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain, and as a result, other elements of our guidance remain unchanged,” commented CFO David Kennerley.

“We continue to believe that our strategy focusing on fresh, our brands and e-commerce will continue to resonate with customers, and our resilient model positions us well to navigate the current environment.”