Fred Meyer’s parent company Kroger is closing two locations in Kent and Everett, citing concerns over theft and regulations, as part of a national effort to cut costs following the company’s failed merger with rival Albertsons.
“Unfortunately, due to a steady rise in theft and a challenging regulatory environment that adds significant costs, we can no longer make these stores financially viable,” a Fred Meyer spokesperson said Monday in an emailed statement about the Everett and Kent closures.
The Everett location is at 8530 Evergreen Way. The Kent store is at 10201 S.E. 240th St. Both will close in mid-October, according to the union representing workers at the affected stores.
Monday’s announcement, which follows several other recent Kroger closures in Washington, sparked concerns in Kent and Everett, where locals worry over declining access to grocery stores, especially in underserved neighborhoods.
“It’s taking away another resource from a neighborhood that’s already hurting,” warned Everett City Councilmember Paula Rhyne, who describes the area around the closing Everett Fred Meyer as among the city’s most diverse and lowest income. News of the closure “is devastating.”
Cincinnati-based Kroger, whose websites list 59 Fred Meyer locations and 55 QFC locations in Washington, said in June it would close 60 underperforming stores nationally over the next year and a half and reinvest the savings in other locations.
“Unfortunately, today, not all of our stores are delivering the sustainable results we need,” Ronald Sargent, Kroger’s interim CEO, said during a June 20 earnings call.
Kroger didn’t release the specific locations at that time, but since then has announced closures in Washington and other states.
In July, Kroger said it would shutter a Fred Meyer in Tacoma along with the Mill Creek location of the QFC chain, which Kroger also owns. Those closures are set for September, according to layoff notices filed with the state.
Kroger didn’t offer any specific data for theft incidents at the Everett or Kent stores, beyond noting that, “[d]espite doubling our safety and security investment over the past years, these challenges remain.”
It also didn’t elaborate on what it meant by “challenging regulatory environment,” according to Monday’s statement, which noted that affected workers will be offered positions at other company locations
Bryan Gilderoy, a produce clerk at the closing Kent store, said the company’s explanations for the closures didn’t square with what he is seeing in his store.
Gilderoy, who worked at the location for 15 years, said the store had been effective in curbing shoplifting and is typically quite busy.
“Like, right now, it’s a full parking lot — the store is full of customers,” said Gilderoy, who is 43 and a member of United Food & Commercial Workers local 3000, which represents workers at the Everett and Kent stores.
The decision to shutter the store “literally feels like it comes out of nowhere,” he said.
Kroger’s “corporate strategy might please Wall Street investors, but we know it’ll create food deserts in our neighborhoods and disrupt the lives of hundreds of workers already displaced by a housing affordability crisis,” added UFCW 3000 president Faye Guenther.
Kroger paused its normal store performance review and closure process during the several years it was attempting to win government approval for a merger with Albertsons, which ultimately failed in December.
“We usually evaluate individual store performance on an annual basis, and we continue to do that, but we deferred closing any stores due to the merger process,” Sargent said during the earnings call.
Kroger didn’t indicate whether the characterization of “challenging regulatory environment” applied only to Washington or also to the several other states where Kroger closures have been announced.
Washington state was the first government entity to file a lawsuit seeking to block the proposed merger between Kroger and Albertsons, and a state ruling against the merger in December contributed to the deal being canceled.
Paul Roberts: [email protected]. Paul Roberts covers business and economics for The Seattle Times.