Next Year Could Bring Closures of Some Idaho Grocery Stores

You can make an argument that companies don’t close busy stores, but when a new business model offers a higher profit margin, it changes the calculus.  Kroger is the parent company of two stores in Twin Falls, both of which have multiple locations in Idaho.  We’re talking Smith’s and Fred Meyer.  The company caused an uproar a few years ago when it planned to close one of the two in Idaho Falls.  People like their neighborhood grocery stores.

Could it happen in Idaho?

Kroger is closing some stores on the eastern side of the country.  While it may not happen here, grocery chains are seeing a change in the way people shop.  More online orders and deliveries to homes negate the need for many large stores.  Large stores require constant maintenance costs, as well as expensive bills for electricity, cooling, and heating.  If online shopping and home delivery increase the return on investment, the need for multiple stores and expensive upkeep diminishes.  Business is looking down the line and attempting to please shareholders, who like to see bigger returns.

The Trend is Going Another Direction

While we may see that Kroger’s two stores in Twin Falls are busy, it doesn’t mean big buildings are the future.  You can expect to see more store consolidations in the future as cultural trends driven by the younger generation influence decision-makers.  Walmart is already doing a booming online business, which was launched to combat the competition from Amazon.  You may not like the idea of change, but it’s the one constant in life.  You can also expect it to accelerate.