Dive Brief:
- Kroger intends to close all Georgia locations in its chain of in-store health centers, The Little Clinic, according to an emailed statement from the supermarket operator.
- Kroger did not say why it has elected to shutter the 18 clinics, which will cease operations effective April 4.
- The closures come at a time when grocers have been emphasizing health and wellness.
Dive Insight:
Kroger’s disclosure that it will entirely shut down its fleet of in-store health centers in Georgia reflects the challenges grocers face as they look to position themselves as supporters of consumers' wellbeing while also driving their financial results.
The company’s healthcare division, Kroger Health, which was formed in 2017, has had to deal with a range of hurdles, including regulatory obstacles and technology challenges, company officials have indicated. More broadly, Kroger has been looking to improve its performance as it deals with slow sales momentum and powerful competition from other food retailers.
Kroger currently runs over 220 Little Clinic locations at stores under its Kroger, Fry’s, Jay C, Dillons and King Soopers banners in states including Ohio, Georgia, Kansas, Kentucky, Tennessee, Arizona, Indiana and Colorado.
“We have enjoyed serving the Georgia community for the last several years through our clinics. We invite our valued patients to continue using the pharmacies conveniently located in Kroger stores,” a Kroger spokesperson said in the statement.
Kroger’s pharmacies are a key driver of Kroger’s bottom line. The company said its pharmacy business led its identical sales growth during the third quarter of fiscal 2025, its most recent reporting period.
Kroger’s decision to shrink The Little Clinic’s footprint follows Walmart’s announcement in April 2024 that it intended to close its fleet of more than 50 in-store health centers in five states. Walmart said that running the centers had become financially unworkable, citing a “challenging reimbursement environment and escalating operating costs” for its decision.
