Kroger set to close 3 more state stores

Company says sites are money losers

FILE - This June 17, 2014, file photo, shows a Kroger store in Houston.
FILE - This June 17, 2014, file photo, shows a Kroger store in Houston.

Kroger Co. plans to close three more grocery stores in Arkansas next month, displacing 108 workers and further contributing to the problem of inadequate food availability in the state.

Stores in DeWitt, England and Morrilton, are closing because of "poor performance and struggling sales" for more than a decade, the grocer's Delta division said in a news release Monday.

Kroger last month closed stores in Searcy and Brinkley, with the Brinkley store undergoing renovations to reopen Saturday as an Edwards Food Giant.

Steve Edwards Jr., special projects manager of Marianna-based GES Inc., the parent company of Edwards Food Giant and Edwards Cash Saver, said his team has been doing a few cosmetic updates, such as a fresh coat of paint and putting in new registers and ceilings, to get the store ready as quickly as possible.

"They don't have a grocery store in the area," Edwards said. "Just about anyone, they have to drive 20-30 miles in any direction to get to the nearest one."

As food retailers consolidate stores, closing sites that can't compete with those in larger towns and cities, so-called food deserts are often left in their wake. These are areas where people don't have easy access to vegetables, grains and other foods.

Morrilton still has a Walmart Supercenter, Harp's and other stores, but in the less-populous England and DeWitt there are fewer options.

Victor Smith, president of Kroger's Delta division, said in a news release Monday that store closures are never easy, but the low financial returns, "even through a pandemic," made it impossible to continue operating with low prices.

The decisions were no reflection on the part-time and full-time workers, he said. The stores employed 29 in DeWitt, 38 in England and 41 in Morrilton.

Edwards said it seems that Kroger is focusing its efforts on bigger stores and e-commerce sales, and the smaller stores don't fit with its business model.

Morrilton Mayor Allen Lipsmeyer said the retail chain probably hasn't invested in the town in 20 years.

"They're just assuming that everyone's going to drive to Conway and Russellville," he said about the imminent closure. "If Kroger doesn't want to be here, let 'em go."

Other grocers, like Walmart and Harp's, have been good corporate partners, investing in their stores and the community, Lipsmeyer said. Three chains already have shown interest in the Kroger property, set to close July 17, he said. He did not disclose who those parties were.

Mayor James Black Jr. of DeWitt said he has reached out to Kroger requesting the store not to leave out of concern for the people who work there.

"Its employees have been there a long time," Black said. "They ask how the kids are doing. It's really a family atmosphere."

The store opened in 1968 and is 8,050 square feet, making it one of the smallest Krogers in the state. To compare, the Piggly Wiggly in town is about two to three times as big.

In case Kroger doesn't change its plans, Black said talks have begun with economic developers to get another grocery store in to fill the looming vacancy.

"I don't know why Kroger is closing the stores like they're doing," he said.

Every county in the state has areas where people have limited access to affordable healthy food like fruits, vegetables, grains and milk, according to the Arkansas Center for Health Improvement. Studies show that people living in these areas have a higher prevalence of diabetes and hypertension, and face greater obesity risks.

Edwards said the situation in Brinkley is unique in that his family owns the shopping center that housed the former Kroger store, at 1421 Pinecrest St., which made the transition easy.

While there is interest in transforming other vacant grocery stores into Edwards sites, he said he wants to finish the Brinkley store before moving on to other projects.

"It's one of those deals where we may have more information in a few weeks, but first we have to get this one under our belt," Edwards said.

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